Digitalisation of the economy and its impact on labour markets —
ver+2+web+version+Working+Paper+2016+02-EN+digitalisation
ver+2+web+version+Working+Paper+2016+02-EN+digitalisation
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Christophe Degryse<br />
<strong>—</strong> A digital world <str<strong>on</strong>g>of</str<strong>on</strong>g> work requires high st<str<strong>on</strong>g>and</str<strong>on</strong>g>ards for <str<strong>on</strong>g>the</str<strong>on</strong>g> protecti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
pers<strong>on</strong>al employee data. Digital technologies produce large amounts <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
data. Clear rules are required to establish what data employers may<br />
collect <str<strong>on</strong>g>and</str<strong>on</strong>g> analyse. Strict protecti<strong>on</strong> must be given to worker health<br />
data, c<strong>on</strong>tents <str<strong>on</strong>g>of</str<strong>on</strong>g> pers<strong>on</strong>al communicati<strong>on</strong>s, <str<strong>on</strong>g>and</str<strong>on</strong>g> involvement in trade<br />
uni<strong>on</strong> activities (…).<br />
<strong>—</strong> Workers’ rights <str<strong>on</strong>g>and</str<strong>on</strong>g> social protecti<strong>on</strong> for all in <str<strong>on</strong>g>the</str<strong>on</strong>g> digital age. The digital<br />
transformati<strong>on</strong> enables substantial increases in n<strong>on</strong>-st<str<strong>on</strong>g>and</str<strong>on</strong>g>ard<br />
employment, for example in <str<strong>on</strong>g>the</str<strong>on</strong>g> form <str<strong>on</strong>g>of</str<strong>on</strong>g> freelancing <str<strong>on</strong>g>and</str<strong>on</strong>g> work in <str<strong>on</strong>g>the</str<strong>on</strong>g> socalled<br />
‘sharing <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g>’. (…) Ways must be created to establish codeterminati<strong>on</strong>,<br />
collective bargaining, <str<strong>on</strong>g>and</str<strong>on</strong>g> worker protecti<strong>on</strong> rights for<br />
<str<strong>on</strong>g>the</str<strong>on</strong>g> entire workforce, as well as social security systems that are open to<br />
all in <str<strong>on</strong>g>the</str<strong>on</strong>g> workforce (…).<br />
<strong>—</strong> (…) The digital <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g> (…) requires frequent re-retraining measures<br />
that are equally accessible to workers in st<str<strong>on</strong>g>and</str<strong>on</strong>g>ard <str<strong>on</strong>g>and</str<strong>on</strong>g> n<strong>on</strong>-st<str<strong>on</strong>g>and</str<strong>on</strong>g>ard<br />
forms <str<strong>on</strong>g>of</str<strong>on</strong>g> employment. To meet this challenge, all workers (…) must have<br />
an enforceable right to paid educati<strong>on</strong>al leave <str<strong>on</strong>g>and</str<strong>on</strong>g> effective training<br />
schemes. To ensure that <str<strong>on</strong>g>the</str<strong>on</strong>g> cost <str<strong>on</strong>g>of</str<strong>on</strong>g> training is not borne by workers,<br />
both employers <str<strong>on</strong>g>and</str<strong>on</strong>g> governments must increase investment in educati<strong>on</strong><br />
<str<strong>on</strong>g>and</str<strong>on</strong>g> training.<br />
<strong>—</strong> (…) As digital change brings fundamental changes to EU <strong>labour</strong> <strong>markets</strong>,<br />
particular attenti<strong>on</strong> is required to preserve <str<strong>on</strong>g>the</str<strong>on</strong>g> European social model.<br />
Numerous sectors <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> digital <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g> are dominated by a small<br />
number <str<strong>on</strong>g>of</str<strong>on</strong>g> big players, <str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> digital <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g> has a tendency to<br />
c<strong>on</strong>centrate wealth while coring out medium-income jobs. This<br />
increases income inequality <str<strong>on</strong>g>and</str<strong>on</strong>g> threatens social cohesi<strong>on</strong>. (…) Increases<br />
in unemployment may be <str<strong>on</strong>g>the</str<strong>on</strong>g> result <str<strong>on</strong>g>of</str<strong>on</strong>g> (technological breakthroughs),<br />
which threatens <str<strong>on</strong>g>the</str<strong>on</strong>g> sustainability <str<strong>on</strong>g>of</str<strong>on</strong>g> social security systems <str<strong>on</strong>g>and</str<strong>on</strong>g> public<br />
services that are financed by <str<strong>on</strong>g>the</str<strong>on</strong>g> taxati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>labour</strong> income. The EU <str<strong>on</strong>g>and</str<strong>on</strong>g><br />
Member States must react to this <str<strong>on</strong>g>and</str<strong>on</strong>g> devise effective strategies against<br />
rising income inequality <str<strong>on</strong>g>and</str<strong>on</strong>g> potential hikes in unemployment in times<br />
<str<strong>on</strong>g>of</str<strong>on</strong>g> digital change. In preparing such strategies, c<strong>on</strong>siderati<strong>on</strong> should be<br />
given to redistributing <str<strong>on</strong>g>the</str<strong>on</strong>g> productivity gains that digital automati<strong>on</strong><br />
may foster through tax systems <str<strong>on</strong>g>and</str<strong>on</strong>g> reducing working time.<br />
Meanwhile, Martin Risak <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> University <str<strong>on</strong>g>of</str<strong>on</strong>g> Vienna has c<strong>on</strong>ducted a study <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
<str<strong>on</strong>g>the</str<strong>on</strong>g> major stakes <str<strong>on</strong>g>of</str<strong>on</strong>g> crowdworking. The c<strong>on</strong>clusi<strong>on</strong>s <str<strong>on</strong>g>of</str<strong>on</strong>g> this study were<br />
presented at a c<strong>on</strong>ference held by AK Europa (Federal Chamber <str<strong>on</strong>g>of</str<strong>on</strong>g> Labour) in<br />
November 2015 <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> topic ‘Modern-Day challenges for <str<strong>on</strong>g>the</str<strong>on</strong>g> European Trade<br />
Uni<strong>on</strong> movement’. According to <str<strong>on</strong>g>the</str<strong>on</strong>g> presentati<strong>on</strong> given by Risak, <str<strong>on</strong>g>the</str<strong>on</strong>g> main<br />
social <str<strong>on</strong>g>and</str<strong>on</strong>g> welfare issues affecting crowdworkers are <str<strong>on</strong>g>the</str<strong>on</strong>g> following:<br />
<strong>—</strong> global competiti<strong>on</strong>;<br />
<strong>—</strong> dislocated physical workplace;<br />
<strong>—</strong> intense virtual c<strong>on</strong>trol mechanisms;<br />
58 WP 2016.02