Telangana Gig Workers’ Union Raises Concerns Over Low Wages and Exploitation
The Telangana Gig and Platform Workers’ Union (TGPWU) has voiced serious concerns to the state’s Labour Department regarding alleged exploitative practices by the quick commerce platform Zepto. The union claims that workers are subjected to unfair treatment, including inadequate pay and unsafe working conditions. In response, Zepto has firmly denied these allegations, asserting that it prioritizes the welfare of its delivery partners.
Allegations of Exploitative Practices
The TGPWU’s letter to the Labour Department and Zepto’s CEO outlines several grievances related to the treatment of delivery workers. The union asserts that despite the critical role these workers play in the delivery process, they are denied essential labor protections. According to the union, the per-delivery rate has been significantly reduced, with workers reportedly earning as little as Rs 10-15 per order. This situation is compounded by the absence of a guaranteed minimum income, forcing workers to endure long hours without adequate compensation. The letter highlights that the stringent 10-15 minute delivery deadlines compel workers to drive at unsafe speeds, thereby increasing the risk of accidents.
Moreover, the union has raised concerns about arbitrary penalties imposed on workers, a lack of clarity in rating systems, and the blocking of accounts without proper grievance procedures. TGPWU also pointed out that basic facilities are lacking at dark stores, and delivery partners are left to cover their operational expenses. The absence of essential benefits such as Employees’ State Insurance (ESI), Provident Fund (PF), health insurance, and accident coverage has further exacerbated the precarious working conditions faced by these workers.
Protests and Calls for Investigation
In light of these issues, the TGPWU has organized a four-day peaceful protest in Hyderabad, emphasizing that Zepto’s management has not adequately addressed the workers’ concerns. The union has formally requested the Labour Department to conduct an investigation into the matter, ensure compliance with minimum wage regulations, and facilitate discussions among all parties involved to resolve the ongoing strike. The union’s actions reflect a growing frustration among gig workers who feel their rights and safety are being overlooked in the fast-paced delivery industry.
Zepto’s Response to Allegations
In response to the allegations, Zepto has stated that 97% of order costs are allocated to delivery partners. The company claims that delivery partners in Hyderabad currently earn between Rs 100-120 per hour, with these earnings remaining stable in recent weeks. Zepto emphasizes that its payout structure is transparent, offering double incentives for peak summer shifts and allowing workers the flexibility to choose their working hours. The company has categorically rejected claims of low or inconsistent pay, asserting that such allegations are unfounded.
Zepto also addressed the ongoing strike, stating that it was resolved quickly and that the company does not pressure delivery partners to rush or penalize them for delays. The company highlighted its commitment to worker welfare, noting that delivery partners are covered by up to Rs 1 lakh in inpatient insurance, have access to free video consultations with doctors, and receive discounts on medicines. Additionally, Zepto claims to provide shaded rest areas, clean restrooms, refreshments, and drinking water at its stores, ensuring that workers have access to basic comforts even during extreme weather conditions.
Looking Ahead
As the situation unfolds, the TGPWU’s call for an investigation and dialogue with Zepto underscores the ongoing challenges faced by gig workers in the rapidly evolving delivery sector. The outcome of this dispute may have significant implications for labor rights and protections within the gig economy. Both the union and Zepto’s management will need to engage in constructive discussions to address the concerns raised and work towards a resolution that ensures fair treatment and safety for all delivery workers.
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