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Motor vehicle drivers

Ontario's Digital Platform Workers' Rights Act Falls Short for Gig Workers

Strategic Insights

— 2 min read

Earla Phillips, a 63-year-old Uber driver with over a decade of experience, had a bleak day on the road. After picking up and dropping off passengers for eight hours, she had made only $49 and spent $30 on gas, barely scraping by. Phillips is not alone, as thousands of Ontario's gig workers face similar struggles, often earning less than minimum wage once expenses are factored in.

With the province's Digital Platform Workers' Rights Act set to take effect on Tuesday, labour advocates are warning that the legislation falls short. The rules guarantee a minimum wage of $17.20 an hour for "engaged time," but ignore the time spent waiting for work, which many drivers say now makes up a large portion of their day. Experts warn that unless all hours worked are covered, gig workers will continue to bear the financial burden while companies avoid paying for much of their labour.

Key Takeaways:

  • Earla Phillips, a 63-year-old Uber driver, earned only $49 after eight hours on the road, highlighting the struggles of gig workers in Ontario.
  • The Digital Platform Workers' Rights Act sets a minimum wage of $17.20 an hour for "engaged time" but ignores time spent waiting for work, which is a significant portion of drivers' days.
  • Labour advocates warn that the legislation falls short and that gig workers will continue to bear the financial burden unless all hours worked are covered.
  • Experts argue that the engaged-time model is flawed, as it downloads costs of waiting for orders onto individuals.
  • Canada's digital platform worker population increased from 1.7% to 2.3% of the population aged 15-69 between 2023 and 2024.
  • Immigrants who had arrived in the past five years were more than three times more likely to have done paid work through a digital platform compared to people born in Canada.

Statistics:

  • 440,000 Ontario gig workers spend long hours on the road, earning less than minimum wage once expenses are factored in.
  • The number of digital platform workers in Canada increased from 468,000 to 700,000 between 2023 and 2024.
  • Digital platform workers earn an average of $5.97 an hour, accounting for all time spent on the app.
  • The majority of digital platform workers are newcomers who depend on the income, and capping the number of drivers is a "Band-Aid solution".

Sources:

  • Phillips, Earla. "Uber driver's dilemma: After 8 hours, $49". Toronto Star (2024)
  • Ontario Labour Ministry. Email statement on Digital Platform Workers' Rights Act (2024)
  • Statistics Canada. Data on digital platform workers (2023-2024)
  • RideFair TO. Research on digital platform workers (2024)
  • Cavalluzzo LLP. Labour-relations lawyer Ryan White's comments on engaged-time model (2024)

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