Introduction
After worrying complaints and press reports narrating cases of murder1 and sexual abuse2 in platforms such as Bolt, Uber and others operating in the Paraguayan market, Congressmen Rodrigo Blanco and Pedro Gómez introduced a bill “To regulate the work in digital mobility and home delivery platform companies”3
This project reflects a regional regulatory trend for passenger transportation and product delivery mediated by platforms. Colombia4, Chile5 and Uruguay6 are just a few countries with legislative discussions and even laws in place to improve the lives of people working on digital work platforms. 7
However, and beyond this tendency, understanding the context is particularly important when we try to regulate a space. The bill presented by deputies Blanco and Gómez pursues a legitimate goal that requires, however, the highest level of debate and attention to not leave unprotected people working in this economy.
From TEDIC, we are members of the Fairwork8 research network. This is an international research project that analyses digital work platforms through five principles that synthesise labour standards for fair work: Fair Pay, Fair Conditions, Fair Contracts, Fair Management and Fair Representation. As part of this membership, last year, we launched the first edition of the Fairwork Paraguay 2022 report.
Thus, we offer below a series of points to be taken into account by legislators when analysing the platform economy, as well as our main reactions and recommendations on the bill in question.
The context
The Paraguayan labour market is characterised by high levels of informality. According to the 2017 Permanent Household Survey, the informal economy in Paraguay represented 65.2% of the total economy. 9 Added to this is a low unionisation rate: Between 2012 and 2019, the unionisation rate in the country was 5.7%.10
Regarding the platform economy, there are still few studies. From qualitative research conducted in Paraguay in recent years, it is possible to state that delivery and transportation apps dominate this local economy. One of the few exploratory studies surveyed 209 delivery and transportation app workers in Asunción and Greater Asunción. The survey shows that most of these people use several apps at the same time to make ends meet. In total, 45.2% of the people surveyed work for two or more platforms simultaneously. The survey also rejects the notion that working people join platforms to supplement their income from other jobs. 68% of respondents indicated that working on platforms is their only source of income. 11
Based on the above, TEDIC applied the Fairwork methodology. The overall scores were very low and show that there is still a long way to go to guarantee basic labour standards for platform workers in Paraguay. Of the six platforms studied, only two, MUV and PedidosYa, were able to score points. 12
Among the main findings, we did not find sufficient evidence that any platform has practices in place to ensure that workers earn at least the nationally established minimum wage after subtracting costs, nor sufficient evidence to affirm that platforms take measures to mitigate work-related health and safety risks or provide a safety net for workers. Also, it was not possible to confirm the existence of a formal policy indicating the willingness of the platforms to recognise and negotiate with a workers’ collective body or a union. 13
The data collected to date and the problematic situations exposed at the beginning of this policy brief are clear signs of the need to grant greater protection to people working in this ecosystem. However, the bill in question raises a number of points that require significant improvement if it is to guarantee the rights of workers in this economy effectively.
Main points to be revised in the law
It is crucial to highlight, as a first point, the positive predisposition of legislators to facilitate multi-stakeholder discussions, thus seeking a regulation that reflects the needs of various sectors. After analysing the views of trade unions and public entities, and how these views have affected the final draft of the bill, it is important to analyse not only the bill but also the views available in SILPY14, in order to clarify a number of issues based on the data collected in the framework of the Fairwork research and regulatory attempts on the matter at regional and global level. In this article, we will expand on each point in particular.
Differentiation between workers depending on the sector
The proposed bill introduces two labour categories: “Digital platform service providers” and “Home delivery workers”, basing the classification on the sector of activity (passenger transportation or product delivery). This differentiation contrasts with the legislations of Uruguay and Chile, which apply more generally to all digital platform workers, regardless of their employment relationship with the companies. In addition, the idea of a Universal Labour Guarantee is put forward to ensure fundamental labour rights to all workers, regardless of their contractual status. However, the bill does not adequately address the reality of the platform economy, such as sub-contractual arrangements, and limits economic and technical subordination only to home delivery workers, ignoring similar conditions in passenger transport
Enforcement authority
The draft law establishes two different regulatory authorities for different labour categories: the Vice Ministry of Labour for “Digital Platform Service Providers” and the Ministry of Labour, Employment and Social Security (MTESS) for “Home Delivery Workers”. However, the ability of the Vice Ministry of Labour to adequately protect rights and guarantee minimum floors of protection for digital platform workers, regardless of their employment status, is questioned. This limitation could compromise the future welfare of platform drivers and the effective enforcement of the law.
Security measures
The bill proposes security measures to protect drivers and passengers of digital platforms, including the creation of a Workers Registry with personal and employment data, assigning them a visible code on the platforms and keeping some of the information confidential. However, there are concerns about excessive data management and collection, lack of clarity on the need for the registry to be public, and surveillance risks. In addition, platforms are required to verify the identity of users and workers. Despite efforts to protect privacy, Paraguay lacks a comprehensive personal data protection law, requiring additional measures such as audits and explicit consent for the processing of personal data. It also highlights the need to avoid discrimination, especially in cases where gender identity does not match official documents, which requires a careful review of policies and practices to ensure effective and non-discriminatory protection.
Legal territoriality
Article 7 of the draft law is highly valued for establishing the obligation for digital platforms to have an official representative and a physical space in the country. This is essential to provide workers with a place where they can resolve problems and file complaints, thus improving their access to justice. The measure also emphasises the importance of multinational companies, such as PedidosYa in Paraguay, maintaining a legal presence in each territory where they operate, demonstrating the viability of this provision to ensure the accountability and legal compliance of such platforms in different jurisdictions.
Algorithmic transparency
The current legislative proposal shows a worrying lack regarding the transparency and explainability of algorithms used by digital platforms, a crucial issue in the current discussions of the EU Directive on platform labour. Although Article 33 refers to the issue by prohibiting automated decisions that negatively affect the work and remuneration of delivery workers, it is considered insufficient in the face of the complexity of these systems and their potential impact on people’s lives. It is vital to ensure that algorithms are transparent, fair and non-discriminatory, and to provide clarity on how they work and the possibility of appealing the decisions these systems make.
Transparency and anti-discrimination policies
While generically prohibiting discrimination and promoting equality in its articles 24 and 33, the bill draft needs clearer and more specific anti-discrimination policies, such as those proposed by Fairwork, covering a wide range of bases of discrimination. In addition, it is suggested that training on topics such as road safety and user protection should also include a gender perspective and be extended to all members of the platform ecosystem, not just workers. Finally, the lack of provisions in the draft requiring platforms to be transparent about the size of their operations and number of workers is highlighted, suggesting that the inclusion of annual human rights reports could be beneficial to understand the scale of their operations better.
Collective representation
The bill needs to further emphasise the importance of collective representation for digital platform workers. Although Article 6 proposes a Permanent Working Table, this does not guarantee effective collective bargaining, nor is collective organisation mentioned in the key articles for platform and delivery workers. This omission is critical, considering that in Paraguay, platforms have not demonstrated a commitment to collective bargaining according to Fairwork criteria. Similarly, the Fairwork project points out this lack in the EU Directive on platform labour, which does not encourage social dialogue or incentivise the active participation of platforms in collective bargaining with workers and their unions.
Next steps
- The current proposal must avoid the current differentiation between transport platform service providers and delivery platform workers, and above all, it must guarantee minimum fundamental labour rights, regardless of the status of the worker, in line with the ILO’s Commission on the Future of Work. In this sense, it is crucial that the law explicitly guarantees the right to collective organisation and representation.
- The relevance of the Vice-Ministry of Transportation as the enforcement authority should be reviewed, and the necessary powers and resources should be provided so that the Ministry of Labour, Employment and Social Security can fulfil its role and oversee eventual compliance with the law and thus guarantee the minimum fundamental rights already mentioned
- It is necessary to include articles that guarantee greater transparency on algorithms and automated decisions within the different platforms operating on Paraguayan territory. This must be accompanied by the real possibility of appeal of this type of decision by the workers and the guarantee of the intervention of a human representative in this type of situation and others that require a multi-faceted analysis.
- The requirement for anti-discrimination policies should include a greater degree of detail that clearly establishes the prohibition of non-discrimination based on race, social origin, caste, ethnicity, nationality, gender, sex, gender identity and expression, sexual orientation, disability, religion or belief, age or any other condition in digital work platforms and by the different people that make up this ecosystem.
- It should incorporate the need for annual human rights reports that make transparent information on platform operations at the local level and the availability of more information on the size of the ecosystem of digital labour platforms and the composition of their workforce.
- Once again, we highlight the urgent need for a comprehensive personal data protection law. This will ensure that the implementation of labour, security or other policies based on the use and collection of personal data is duly regulated in order to guarantee the privacy and protection of the personal data of all individuals. The Chamber of Deputies must demand that the draft bill for the protection of personal data presented by the Personal Data Coalition be dealt with in the plenary of Congress.
- In order to address these and other concerns that may arise in the context of the various debates surrounding the bill, we recommend that the bill not be considered next Wednesday, 22, and until such time as a new version of the bill is circulated for final feedback from all parties involved.
Download the full policy commentary here.
Read the extended version of the comments on the draft law here.
1Ultima Hora, “Bolt driver murdered in Villa Elisa over cell phone”, Última Hora, 2023, https://www.ultimahora.com/asesinan-a-conductor-de-bolt-en-villa-elisa-por-un-celular
2Hoy, “Bolt driver lived a nightmare: abused and assaulted by 4 men”, Diario HOY (blog), February 23, 2023, https://www.hoy.com.py/nacionales/conductora-de-bolt-vivio-una-pesadilla-fue-abusada-y-asaltada-por-4-hombres
3Chamber of Deputies, “Bill ‘Regulating the work in companies of digital mobility and home delivery platforms’.” (2023), http://silpy.congreso.gov.py/web/expediente/128565
4Oscar Maldonado and Derly Sanchez, “Policy Brief: Labour Reform in Colombia for Digital Platforms: A Move towards Fair Work?”, 2023, https://fair.work/en/fw/publications/26636/
5Jorge Leyton et al., “Chile and the legal regulation of platform labour: a missed opportunity?” 2022, https://fair.work/es/fw/publications/new-regulation-of-platform-work-in-chile-a-missed-opportunity/
6Ministry of Labour and Social Security, “Bill “Concerning the protection of work developed through digital platforms that organize services for the delivery of goods or urban and onerous transportation of passengers”.” (2022), https://medios.presidencia.gub.uy/legal/2022/proyectos/09/mtss_314.pdf
7A digital labour platform is a company that mediates and facilitates “labor exchange between different users, such as companies, workers and consumers”. For more information, please visit https://fair.work/en/fw/about/
8This project is based at the University of Oxford and the Social Science Centre Berlin (WZB). For more information, please visit: https://fair.work/en/fw/homepage/
9Dionisio Borda et al., “Challenges for decent work: Work on digital platforms in Paraguay”, Publication, December 9, 2021, http://www.ilo.org/santiago/publicaciones/informes-tecnicos/WCMS_831344/lang–es/index.htm.
10Fernando Ovando, “New forms of employment in Paraguay”, 2020, 20.
11Ignacio González Bozzolasco and Belém Montalto, “Transport, delivery and precariousness in Paraguay”, 2021, https://library.fes.de/pdf-files/bueros/argentinien/18166.pdf
12Eduardo Carrillo et al., “Fairwork Paraguay Ratings 2022: Labour Standards in the Platform Economy”, 2022, https://fair.work/en/fw/publications/fairwork-paraguay-ratings-2022-labour-standards-in-the-platform-economy/
13Carrillo et al.
14Legislative information system. More information at http://silpy.congreso.gov.py/web/
15Ministry of Labour and Social Security, Bill “Regarding the protection of work developed through digital platforms that organize services for the delivery of goods or urban and onerous transportation of passengers”.
16Leyton et al., “Chile and the legal regulation of platform labour”.
17World Commission on the Future of Work, “Working Toward a Brighter Future,” Report., 2019, http://www.ilo.org/global/topics/future-of-work/publications/WCMS_662541/lang–es/index.htm
18Fairwork, “Fairwork recommendations for the EU Directive on Platform Work”, 2023, https://fair.work/en/fw/blog/fairwork-recommendations-for-the-eu-directive-on-platform-work/
19Legislative Information System Paraguay
20FECAPOP, “Technical legal report”, 2023, http://silpy.congreso.gov.py/web/descarga/informetecnicojuridico-102553?preview
21Chamber of Deputies, Bill “Regulating the work in companies of digital mobility and home delivery platforms”.
22MITIC, “MITIC Report”, 2023, http://silpy.congreso.gov.py/web/descarga/informetecnicojuridico-102700?preview
23Carrillo et al., “Fairwork Paraguay Ratings 2022: Labour Standards in the Platform Economy”.
24Carrillo et al.
25Carrillo et al.
26Chamber of Deputies, Bill “Regulating the work in companies of digital mobility and home delivery platforms”.
27Carrillo et al., “Fairwork Paraguay Ratings 2022: Labour Standards in the Platform Economy”.
28Chamber of Deputies, Bill “Regulating the work in companies of digital mobility and home delivery platforms”.
29Carrillo et al., “Fairwork Paraguay Ratings 2022: Labour Standards in the Platform Economy”.
30Fairwork, “Location-Based Platform Work Principles”, 2023, https://fair.work/en/fw/principles/fairwork-principles-location-based-work/
31Chamber of Deputies, Bill “Regulating the work in companies of digital mobility and home delivery platforms”
32Chamber of Deputies.
33Carrillo et al., “Fairwork Paraguay Ratings 2022: Labour Standards in the Platform Economy”.
34Fairwork, “Fairwork recommendations for the EU Directive on Platform Work”.