Abstract

The case examines the mismatch between existing labor-systems and platform businesses in Europe with reference to the early initiatives of Hilfr, a Danish online cleaning platform. Hilfr signed a collective agreement with the Danish trade union, The United Federation of Danish Workers (3F) that offered significant guarantees for self-employed workers working for Hilfr. The case then touches upon how the Danish Competition and Consumer Authority (DI) stated in 2020 that such agreements stipulating minimum fees for freelance domestic workers did not align with the EU Competition law. The case finally focuses on the efforts of the European Commission (EC) to ensure that EU competition rules do not stand on the way of collective agreements aimed at improving the working conditions of self-employed people. The case can be used by executives and management students to examine the need for collective bargaining process in the gig economy, and the role of companies, trade unions and the government agencies in this process. It also delves into the legal challenges that companies encounter in their efforts to be responsible businesses and take the lead to create a win-win opportunity for employers and employees.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine the need and benefits of initiatives related to fair labor practices
• Explain the concept of collective bargaining as a means to ensure decent pay and working conditions for self-employed workers associated with platform businesses
• Recognize the challenges for proactive companies to implement collective bargaining agreements in the web-based platform economy
• Assess the role of labor laws and government guidelines to improve the working conditions of self-employed people.

Keywords

Labor Market Models; Collective Bargaining; Labor Rights and Benefits; Trade Unions; Fair Labor Practices; Competition Law, Gig Economy; Platform Businesses; Industrial-Relations