Introduction The individuals that make up the workforce have evolved greatly over the last few decades. This includes how they work, where they work, and who they work for. The unique developing labor force is also growing at a rapid pace. According to a report by Emergent Research and MBO Partners, there are approximately 30 million full-time and part-time independent workers in the “gig economy” (Gillespie, 2016). The gig economy is an environment where temporary positions are common and companies contract directly with independent workers for a short time (whatis.techtarget.com). To simplify, the gig economy is hiring labor on demand. Examples of workers in the gig economy include drivers for Uber, Lyft, or Sidecar; freelancers such
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An “independent contractor” is one who, “in the exercise of an independent employment, contracts to do a piece of work according to his own methods and is subject to his employer’s control only as to the end product or final result of his work” (Muhl, 2002). There are many financial pros for a company to use independent short term workers. Typically workers will own, maintain, and have sole responsibility for their assets. For example, Uber drivers use their own cars and renters using Airbnb own their property. The company also does not have to pay benefits. This includes workers compensation, investments in a 401K plan, health and dental insurance, paid time off, tuition reimbursement, etc. The business also has the benefit of labor on demand. This means that they only have to pay the worker when they need them. The fiscal savings from using an independent contractors helps to keep the prices low for an …show more content…
Companies have little or no incentive to organize the workforce and have more power in classifying their workers how they see fit. As a result of the outdated classification methods the non-traditional workforce continues to struggle when it comes to collective bargaining rights and organizing. Labor relations and law need to update their views and methods to keep up with the new workforce. Based on the research, it is evident that the time to address the issues and work to resolve them is now. Over 30 million workers have their livelihood dependent on the decisions that have to be made in labor relations and
An “independent contractor” is one who, “in the exercise of an independent employment, contracts to do a piece of work according to his own methods and is subject to his employer’s control only as to the end product or final result of his work” (Muhl, 2002). There are many financial pros for a company to use independent short term workers. Typically workers will own, maintain, and have sole responsibility for their assets. For example, Uber drivers use their own cars and renters using Airbnb own their property. The company also does not have to pay benefits. This includes workers compensation, investments in a 401K plan, health and dental insurance, paid time off, tuition reimbursement, etc. The business also has the benefit of labor on demand. This means that they only have to pay the worker when they need them. The fiscal savings from using an independent contractors helps to keep the prices low for an …show more content…
Companies have little or no incentive to organize the workforce and have more power in classifying their workers how they see fit. As a result of the outdated classification methods the non-traditional workforce continues to struggle when it comes to collective bargaining rights and organizing. Labor relations and law need to update their views and methods to keep up with the new workforce. Based on the research, it is evident that the time to address the issues and work to resolve them is now. Over 30 million workers have their livelihood dependent on the decisions that have to be made in labor relations and