Australia's Care Economy: Where Technology and Humanity Intertwine
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By Alexi Freeman
As a society, we must take better care of our older, more vulnerable people and connecting through digital technology may assist. But to what extent will the gig economy truly support the complexities of the aged care sector?
Digital disruption has given rise to household names like Uber and Airtasker, offering unprecedented convenience for consumers and flexibility for workers.
Amidst all the digital dopamine hits, disruptive technologies are impacting the delivery and quality of Australian aged care profoundly, exemplified by the launch of Uber Health for non-emergency transport to medical appointments.
By 2050, 22% of Australia’s population will be aged 65 and over — changing demographics that demand innovative solutions to meet the ever-increasing need for services.
The healthcare and social assistance industry already accounts for 15% of Australia’s workforce and is projected to continue to outcompete all other industries. The gig economy seeks to streamline the process by connecting caregivers and clients more efficiently.
However, the gig economy’s role in providing aged care services may raise quality concerns — a topic hotly debated during the Royal Commission into ‘Aged Care Quality and Service’.
The Commission’s interim report, titled “Aged Care in Australia: A Shocking Tale of Neglect” paints a bleak picture and highlights the failure of the aged care system to ‘meet the needs of its older, vulnerable, citizens. It does not deliver uniformly safe and quality care, is unkind and uncaring towards older people and, in too many instances, it neglects them.’
Health Services Union national president Gerard Hayes said the ‘gigification’ of aged care was “fraught with danger”.
Nevertheless, with 366,000 caregivers already working in the aged-care sector and a shortfall looming, the gig economy beckons workers and clients seeking personalised care services.
Mable is a leading Australian online platform offering aged care services. Launched in 2014, Mable reports having booked a staggering 11 million support hours, equating to around 1255 years of continual time. The platform claims to foster ongoing relationships rather than one-off engagements, highlighting the importance of continuity and care in service provision.
While platforms like this may offer part of the solution to the supply-demand issue in aged care, more robust and sustainable care solutions are needed. The care economy’s burgeoning reliance on digital platforms and their algorithms may inadvertently lead to issues such as concerns over worker entitlements and conditions.
Algorithms pump the lifeblood of the gig economy, matching stakeholders and improving efficiency while potentially facilitating unfair treatment of workers. Algorithmic decision-making may prioritise cost over quality, leading to a race-to-the-bottom effect leaving workers grappling with unfavourable outcomes.
Platforms should prioritise high-quality care to mitigate the risk of compromised quality during efforts to derive reasonable income. Moreover, the gig economy’s emphasis on independent contracting can plunge workers into precarious employment situations of low pay, poor conditions, gender pay inequality and the risk of future poverty.
For instance, a recent Industry Super Australia report stated that gig workers miss out on A$400 million in superannuation yearly.
These factors can impact the well-being of care workers and ultimately affect the quality and continuity of care provided. Clients also face challenges in establishing reliable care arrangements stemming from the ‘uberisation’ of care work.
Addressing these challenges requires a multifaceted approach that balances innovation with sustainable working conditions. Collaboration between policymakers, industry stakeholders and platform operators is essential to ensure that care economy platforms operate within regulatory frameworks that protect the interests of caregivers and care recipients.
The Albanese government is consulting on new laws to give the Fair Work Commission powers to improve the rights of gig economy workers. Independent contractors do not have the same swathe of employment entitlements as employees.
Reforms that enhance IC rights such as minimum wages and other entitlements may emerge as pivotal safeguards promoting fair working conditions. Proper classification of some gig workers as employees with appropriate dismissal protections is another essential step of this regulatory dance.
It seems the tide may be turning. In 2021, Menulog became the first Australian gig economy company to directly employ workers, marking an important shift away from their highly criticised independent contractor model.
In 2022, Uber also reached a historic agreement with the Transport Workers’ Union, ensuring “minimum benefits and standards for platform workers who aren’t engaged as employees”.
In embracing gig workers within the care sector, the potential value lies not only in profit and efficiency but in increasing the accessibility and quality of care. Collaboration among all stakeholders can shape a gig economy that empowers caregivers while enriching the lives of care recipients.
Striking a delicate balance between consistent care quality and flexibility is crucial, encompassing wages, proper classification and algorithmic management. By adopting thoughtful and inclusive approaches, we can navigate the complexities of the digital frontier and co-create a care ecosystem that harnesses the gig economy’s potential while safeguarding the dignity and welfare of all involved.
The future of Australia’s care landscape hinges on our commitment to fairness, transparency and the unwavering belief that everybody deserves the highest standard of care.
Through addressing the challenges and opportunities in the gig economy, let’s build a more equitable care economy that thrives on collaboration, innovation and compassion.