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ILO Convention 193 Should Govern Gig Worker Pay

The dispute over applying ILO Convention 193 to gig economy remuneration turns on a familiar question, whether platform flexibility justifies weaker wage standards, or whether modern labor markets still require durable international rules.

Portrait of Selene Ward

By Selene Ward / The Historian / 1176 words

Editorial illustration for "ILO Convention 193 Should Govern Gig Worker Pay"

The argument over gig economy pay is often presented as if history began with the app. It did not. The resolution here, whether ILO Convention 193 should be applied to regulate remuneration standards for gig economy workers, is not really a contest between the future and the past. It is a contest between those who believe new technology changes the basic power relationship between workers and firms, and those who have seen enough labor history to know that it usually does not.

The stakes should be stated plainly. Payment structures for ride hail drivers, delivery couriers, online taskers, and other platform workers are not a minor design choice. They determine whether wages are legible, whether waiting time is compensated, whether deductions are transparent, whether workers can predict earnings, and whether competition among platforms becomes a race to the bottom. If remuneration standards are left wholly to unilateral platform design, then the effective law of work becomes the algorithm. That is a constitutional and institutional problem as much as an economic one.

The strongest objection, pressed throughout this debate, is not frivolous. Opponents argued that applying an existing international labor standard to gig work would import rigidity into a sector built on flexibility. They warned of ossification, slower innovation, higher compliance costs, reduced opportunities for casual earners, and the danger of forcing a nontraditional form of work into categories designed for traditional employment. That concern deserves a serious answer, because labor law has often erred when it mistook unlike cases for identical ones.

But the historical caution runs in the other direction. Employers have repeatedly described labor protections as unworkable because the industry was too new, too seasonal, too decentralized, too competitive, or too dependent on variable demand. Piecework, home work, day labor, dock labor, agricultural labor, and early industrial subcontracting were all defended, at one point or another, with an appeal to special flexibility. In nearly every case, the absence of baseline standards did not produce a flourishing republic of free contractors. It produced opacity, wage shaving, and risk shifted downward to the weakest party.

That is why the invocation of ILO Convention 193 matters. The article discussed on OnLabor treats the convention as an existing international labor standard relevant to remuneration in gig work. One need not pretend that every clause maps neatly onto every platform model to grasp the larger institutional point. Applying a convention is not the same thing as freezing a sector in amber. It means using an established legal framework to set minimum principles for pay, disclosure, and fairness, rather than permitting the terms of compensation to emerge solely from private code and take-it-or-leave-it contracts.

This is where the anti-regulatory side of the debate overreached. It treated flexibility as if it were a self-justifying good. But flexibility for whom? A worker who can log on at will still may have no meaningful control over rates, penalties, deactivations, routing, batching, or incentives. A platform can vary pay formulas in ways no ordinary worker can audit. The old legal distinction between freedom of contract in theory and inequality of bargaining power in fact is not obsolete because the contract arrives through a smartphone. If anything, software amplifies the asymmetry by making compensation systems more complex and less contestable.

Nor is it persuasive to say that market competition will discipline abuse. In labor markets, competition often disciplines workers first. Where workers are atomized, interchangeable, and denied shared bargaining power, firms can compete by reducing labor costs and obscuring remuneration. That pattern is familiar from centuries of labor regulation. It is the reason wage payment laws, minimum standards, and transparency rules developed at all. The point of international labor conventions is not to smother enterprise, but to prevent the oldest form of commercial innovation, finding new ways to underpay labor while disclaiming responsibility.

There is, however, an important concession to make. Gig work is not identical to factory labor, and regulation should not lazily assume it is. A sound application of Convention 193 would not require every platform worker to be treated the same way in every national system. It would instead require that remuneration standards fit the realities of platform-mediated work: clear earning formulas, compensation for work-related time that the platform effectively controls, limits on arbitrary deductions, timely payment, accessible records, and enforceable minimum floors compatible with variable scheduling. In other words, adaptation in administration, continuity in principle.

This is why the supposed opposition between innovation and labor standards is overstated. Modern economies routinely operate under baseline rules. Securities markets still innovate under disclosure obligations. Consumer technology still evolves under product safety law. Banking still functions under prudential regulation precisely because the absence of rules can destroy confidence in the system. Labor markets are no different. The platforms that can survive only by keeping remuneration opaque or chronically substandard are not models of progress. They are subsidy-hunting business models that rely on shifting cost and risk onto workers and, eventually, the public.

A deeper institutional issue lurks beneath the remuneration debate. If international labor standards are deemed inapplicable whenever work is broken into tasks, mediated by software, or recast as independent contracting, then the law invites regulatory arbitrage on a massive scale. Firms will learn the obvious lesson: redesign the interface, rename the worker, and the old obligations disappear. That would not be adaptation; it would be state-sanctioned evasion. Institutions endure because they can absorb novelty without surrendering their core commitments. A labor standard that cannot reach platform work is not prudent. It is obsolete.

The defenders of pure dynamism also made a rhetorical move that deserves resistance. They framed delay in regulation as the costliest mistake, as if civilizational progress depends on preserving every experimental compensation scheme in the gig economy. History counsels sobriety. Societies are rarely ruined by asking whether wages are transparent and adequate. They are often damaged by permitting labor arrangements to proliferate faster than law, until dependency deepens and correction becomes harder. The urgency of the present moment is a poor guide when the underlying structure, concentrated control over compensation and diffuse worker vulnerability, is so old.

So yes, ILO Convention 193 should be applied to regulate remuneration standards for gig economy workers. Not because every inherited rule is wise, and not because every platform is predatory, but because the burden of institutional memory falls on anyone claiming this time is different. Sometimes it is different in mechanics. It is rarely different in incentives. The lesson of labor history is not that innovation must be resisted. It is that innovation without minimum rules usually discovers, very efficiently, how little labor can be paid.

A decent legal order does not wait for the next scandal to relearn that lesson. It applies the standards it already has, interprets them intelligently, and insists that new forms of work still answer old questions. Who sets the price of labor, by what process, with what transparency, and subject to what floor of justice? On those questions, the gig economy is not beyond the reach of law. It is exactly where the law must arrive.