Advertisement
China economy
TechBig Tech

China pressures Meituan, Didi to protect ‘labour interests’ as Covid-19 controls make life difficult for gig workers

  • China’s labour ministry, cyberspace administration, transport ministry, market regulator and union federation summoned 11 tech platforms
  • The unemployment rate for those aged between 16 and 24 rose from 15.3 per cent in January to 19.9 per cent in July, according to official statistics

Reading Time:3 minutes
Why you can trust SCMP
1
A delivery man passes food over the fence to a resident in quarantine in Shanghai, China, 28 March 2022. Photo: EPA-EFE
Iris DengandTracy Qu

Chinese authorities have urged the country’s gig economy platforms, including delivery giants Meituan and Ele.me, as well as ride-hailing firm Didi Chuxing, to “protect labour interests” at a time when the country’s dynamic zero Covid-19 policy is making life difficult for casual workers.

China’s labour ministry, along with the country’s cyberspace administration, the transport ministry, the market regulator and the All-China Federation of Trade Unions, summoned 11 platforms before last week’s Mid-Autumn Festival holiday to give them “administrative guidance” on protecting rights of gig economy workers who are usually hired on flexible contracts, according to a statement from the labour ministry on Tuesday.

The statement provided few details, but the warning came at a time when China’s gig economy workers are bearing the brunt of the country’s draconian Covid-19 controls, from snap lockdowns to regular testing. On China’s highly censored social media there have been many videos posted showing struggling workers who are unable to work due to lockdowns and other health controls.

In a video clip widely shared during the partial lockdown of the southern city of Shenzhen earlier this month, a shirtless man is seen trying to squeeze his head through the bars of a closed gate, crying out, “I can’t stop earning money. I have to get out to earn money. I have to support my mom, and I have to support my daughter. I can’t be locked down here, I can’t afford being locked here!”

Advertisement

China officially has 200 million workers on flexible employment, with many earning a living doing odd jobs. However, as China’s economic growth quickly loses steam, rising unemployment is fermenting social tensions.

The unemployment rate for Chinese youth aged between 16 and 24 rose from 15.3 per cent in January to 19.9 per cent in July, according to the National Bureau of Statistics. That is the highest rate since Beijing started publishing the youth unemployment index in January 2018, and higher than that of the US and many European countries.
Delivery workers for Meituan wait for orders in Beijing, China, June 3, 2022. Photo: Bloomberg
Delivery workers for Meituan wait for orders in Beijing, China, June 3, 2022. Photo: Bloomberg
China has been introducing new measures to help tech firms create employment and stabilise the economy ahead of the 20th Party Congress next month, where a new generation of Communist Party leaders will be announced.
Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x