Reconfiguration of labour power resources within platform capitalism

25 September 2024 By

In the INCA’s project report entitled ‘Reconfiguration of labour power resources within platform capitalism’ (D2.2) our aim is to understand the interplay of the reconfiguration of labour power and the country-specific variations of platform capitalism (in Southern, Central and Eastern European countries). The analysis addresses the evolution in labour-capital power asymmetry and links platform capitalism to social inequalities, including those related to gender.

Our analysis consists of several parts. Firstly, we discuss the link between concepts of workers labour power (Power Resources Approach), Varieties of Capitalism theory, as well as platformisation of economies in EU countries. Secondly, we present research questions, hypotheses (described below) and methodology. Thirdly, we examine the secondary data and reports on institutional and organisational foundations of labour conflicts in the platform economy. Finally, we carry out content analysis of key strategic documents (also secondary data) issued by trade unions and employers organisations in Poland, Portugal, Spain and Italy in response to platforms expansion in EU countries. Based on the critical literature review conducted we ask the following research questions: what are the relationships between the platformisation of the economy in European countries representing the distinct varieties of capitalism (and in particular, the expansion of labour platforms) and the evolution of labour power in these countries?

Furthermore, we propose two main and tentative hypotheses concerning the development of industrial relations in platform economy: convergence and divergence. The former hypothesis, which can be dubbed as downwards convergence, presupposes that platformisation will be defined by the social partners as a predominantly market-driven process that is likely to reduce cross-country differences in industrial relations and lead to a decline in labour power and growing socioeconomic inequalities. Additionally, we also analyse the upwards convergence which assumes that the EU-level political and regulatory countermovement to platformisation is expected to create a “new” model of industrial relations in a platform economy, leading to a reduction in cross-national differences and inequalities. The latter hypothesis, i.e., institutional path-dependency divergence presupposes that the expected impact of platformisation on industrial relations and inequalities at EU and national levels will be mediated by existing national industrial relations institutions.

We conclude analyses with the three main points. Firstly, At EU level, we can see a convergence of deepening conflict between capital and labour, resulting in regulatory counter-movement to, on the one hand, establish greater social and political control over big tech companies, and establish definitions of platform worker, platform, etc., but also collective action by workers such as protests and strikes. By means of the divergence and institutional path-dependency hypothesis, on the other hand, we show that the impact of platformisation is mediated by preexisting institutional setting of industrial relations at the national level as well as the strategies employed by the IR actors. Secondly, one of the most supportive countries for platform workers is Spain, where regulations such as the ‘Rider law’ have been introduced. Because of the existence of stronger unions in Spain, regulations at the national level precede EU legal steps, and in a country like Poland, where unions do not have as much power, there is a greater expectation of EU legislative initiatives. Finally, future EU policy should focus on supporting the bargaining power of platform workers vis-a-vis the overwhelming institutional power of Big Tech companies.

 Szymon Pilch, University of Wroclaw