The use of gig economy applications like Temper by major retailers, including Urban Outfitters and Dreams, has sparked outrage as workers find themselves earning below the legal minimum wage. With systemic issues surrounding workers’ rights in the gig sector coming to the forefront, calls for urgent reforms are intensifying amidst fears of exploitative practices.
The Controversy Around Temper
Urban Outfitters recently posted job vacancies at £12.50 an hour via the gig platform Temper. However, workers eager for quick payment face a 2.9% fee, effectively reducing their earnings to £12.14, just shy of the current minimum wage of £12.21 for those aged 21 and over. This troubling trend highlights a growing concern that the gig economy is creeping into sectors traditionally protected by employment rights, leaving many workers vulnerable.
The Trades Union Congress (TUC) has raised alarms, claiming that the gig economy app is facilitating a rise in “bogus self-employment” roles. “We find it hard to see how roles like shop assistant can be self-employed,” a TUC spokesperson stated, underscoring the absurdity of treating such positions as freelance work.
Retail Giants Join the Fray
Urban Outfitters isn’t alone in this dilemma; Dreams and cafes in London’s Royal Parks are also implicated. Dreams has recently advertised various roles, including a delivery driver position at £15.14 an hour. However, those unwilling to wait for up to 60 days for payment must pay the same 2.9% fee, lowering their effective wages further to £12.35 and £13.68 respectively.
Colicci Cafe, which operates within the Royal Parks, has also been offering barista roles at £12.50 an hour. Similar to Urban Outfitters, baristas opting for immediate payment find their rates slashed by the fee, placing them below the legal wage threshold.
Responses from the Industry
The backlash has prompted some businesses to reconsider their use of platforms like Temper. Outernet, a prominent London venue, recently withdrew job postings after media scrutiny, stating, “This was the first time we used this site and we won’t be again.” Such responses reflect a growing awareness of the ethical implications of gig economy practices in retail and hospitality.
Despite the criticism, Temper maintains that its model provides workers with flexibility and autonomy, claiming it offers better protections than zero-hour contracts. The company asserts that those who work through its platform do so on a self-employed basis, allowing them to negotiate pay and choose shifts. “Everyone who works via Temper is doing so on a self-employed basis, and this is made clear at sign-up,” the company stated.
The Call for Change
Labour leaders, including TUC General Secretary Paul Nowak, argue that without immediate government intervention, bad employers will continue to exploit legal loopholes. “Cynical bosses should not be able to exploit gaps in the law to deny workers proper pay and conditions,” Nowak declared, highlighting the urgent need for reforms in the gig economy.
In light of the Employment Rights Act, which promises new protections, there is hope that the landscape for gig workers may soon change. Until then, the fight for fair wages and workers’ rights continues.
Why it Matters
The exploitation of gig economy workers in sectors like retail and hospitality is not merely a labour issue; it is a reflection of our societal values around fairness and dignity in work. As gig platforms expand their reach, the potential for widespread underpayment and lack of basic rights grows. The current situation demands immediate attention from policymakers to ensure that all workers, regardless of their employment status, are afforded the protections they deserve. The battle for fair wages goes beyond the individual; it is a fight for the integrity of work itself.
