A New Way of Working in Aotearoa
From ordering a ride with your smartphone to getting food delivered to your door, the 'gig economy' has reshaped how many New Zealanders work and consume services. The gig economy is based on flexible, temporary, or freelance jobs, often coordinated through an online platform. Instead of a permanent job with a single employer, workers are treated as independent contractors, picking up 'gigs' or tasks when they choose. Proponents argue this model offers unprecedented flexibility and autonomy, allowing people to set their own hours and be their own boss. For consumers, it often means faster, more convenient services.
However, this new model has sparked considerable debate. Critics point to a lack of job security, with no guaranteed hours or income. Gig workers are typically not entitled to benefits like sick leave, holiday pay, or KiwiSaver contributions, which are standard for employees. A 2023 report from the Council of Trade Unions (CTU) estimated that the average hourly wage for a food delivery driver in Auckland, after accounting for vehicle costs and waiting time, could be as low as $15 per hour—well below the minimum wage. This has led to legal challenges and calls for regulatory reform to better protect these workers.
The central question is whether gig workers should be classified as employees or remain as contractors. In 2022, the Employment Court ruled that a group of Uber drivers were, in fact, employees, granting them rights to collective bargaining. This landmark decision could have far-reaching implications for the entire sector. As technology continues to evolve, New Zealand society must grapple with how to balance the innovation and convenience of the gig economy with the need for fair and secure work for all. The debate pits modern flexibility against traditional worker protections, and the outcome will shape the future of work in Aotearoa.