Independents’ Day:

Why gig work is taking hold in B.C.

August 2018

Highlights
A Vancity survey of self-employed independent workers and a review of data from Statistics Canada found that:

• B.C. is a self-employment pace-setter, with one of the largest proportions of self-employed workers in Canada,
and the largest proportion when farm workers are removed from the equation.

• A large majority of independent workers whom Vancity surveyed prefer self-employment and the flexibility and
freedoms it provides, over regular employment.

• Income instability and a lack of access to employer-paid health and vacation benefits are identified as the biggest
disadvantages to independent gig work.

• Nine of 10 independent workers surveyed say that access to extended health and dental plans is important to
them, yet half do not currently have access to such plans.

• More than 40% of those surveyed reported a net income last year of less than $25,000. Only one-quarter of
respondents reported a net income of over $50,000 in 2017.

• Over half of those surveyed say they have experienced stress related to their self-employment at least once a
month in the past year.

• Only 20% of those surveyed say they are on track with their retirement savings needs. Among independent
workers aged 35-44, that figure drops to just 10%.

• Careful attention is required to ensure the protections that workers enjoy in the current economy are carried into
this emerging employment landscape.

To help independent workers overcome the challenges they face, this report puts forward a number of recommendations.
These include:

• Individuals should be aware of current employment law, and join groups or pools of other independent workers
to share information and create resources they cannot access on their own.

• Governments should gather and report data on independent workers through census-taking to better understand
and respond to this segment of the working population.

• Companies and organizations that contract with independent workers should review and enhance policies on
how independent workers, contractors and temporary workers are treated in the workplace.

Make Good Money (TM) is a trademark of Vancouver City Savings Credit Union. 1
Despite financial challenges, B.C.
workers embrace the gig economy
Around the world, non-traditional work arrangements outside
the standard, weekday nine-to-five are gaining traction, even
preference, over working for a boss. British Columbia is no
exception. The province has one of the highest proportions
of self-employed workers in Canada. Almost 18% of B.C.’s
workforce is self-employed, which is well above the national
average.1 Chief among the province’s 440,000 self-employed
workers are the independents – people who work alone
without paid help, serving one client or more at a time,
moving from one job or assignment to the next and often
balancing multiple tasks simultaneously.
Contractors, freelancers, consultants, solopreneurs, gig
workers: the independents go by different names. They are
not restricted to any single industry or profession. They
include lawyers, architects, accountants, tradespeople,
teachers, tour guides, construction workers, drivers,
mechanics, artists and stylists. The list is practically endless,
and their ranks are growing.
But some workers take the independent route reluctantly.
They may have no choice. Many of society’s largest and
most reliable employers – in both private and public sectors
– have retrenched, using new technologies that render
some traditional workplace tasks and functions obsolete, or
replacing full-time positions with outside help.
According to one frequently referenced report, more
than one-third of U.S. workers are already full-time
independents, and they could form a workforce majority
by the end of the next decade.2 It is estimated that one-
third of all Canadian workers now earn at least part of
their incomes as independents, “outside the traditional
employer-employee relationship.”3
While the changing employment landscape presents
opportunities for independent workers, it clearly creates
uncertainties and challenges. This is especially true in
B.C., the nation’s self-employment pace-setter, where
notoriously high costs of living and middling household
incomes can make it difficult just to make ends meet.4 In
fact, B.C. has one of the highest rates of poverty in Canada:
about 13% of British Columbians live in poverty, most of
them the working poor.5 In the current environment, words
such as “precarious” and “precarity” are commonly used to
describe independent work.
According to Canada’s Library of Parliament, precarious
employment “generally refers to a lack or inadequacy of
rights and protection at work. This definition can apply to
informal work, but also to several types of formal work,
2
including subcontracting, temporary contracts, interim
work, self-employment and involuntary part-time work.
These types of formal employment are considered more
precarious, because they are associated with reduced
financial security and stability stemming from lower wages
on average, less access to benefits such as private pension
plans and complementary health insurance, as well as
greater uncertainty about future employment income.”6
The category of independent worker most closely
associated with reduced financial security and stability –
the unincorporated self-employed with no paid help – has
increased by 70% in B.C. since the 1970s, to more than
200,000 individual workers.7 That is almost half of all self-
employed workers in the province.
To better understand their experiences and the problems
they may face, Vancity reviewed contemporary research and
statistical data, and conducted a survey of more than 200
self-employed adults who identify as independent workers
or solopreneurs who work independently.
Results from Vancity’s April-May 2018 gig work survey offer
a number of key insights and surprises. For example, more
than 40% of respondents report an annual net income last
year of less than $25,000, far less than the province’s median
after-tax income of $36,480 for a single income household
(2015 census data) and below the accepted “poverty line”
measured by “market basket measure or low income
measure.”8 9 While an overwhelming majority say they feel it
is important to have access to extended health and dental
coverage, half say they do not have such coverage at the
present time. And most of those surveyed say they have
insufficient savings and retirement plans.
But they also point to advantages that come with
independent work, including certain freedoms on which
they place great value. The vast majority (83%) of workers
surveyed say that given a choice, they would rather have
full-time self-employment than full-time work with a
company or organization.10
This report examines how B.C.’s independent workers are
coping with the new work order: remarkably well in many
areas. But the report also identifies where difficulties exist
and improvements can be made. Given that hundreds of
thousands of independent workers have already entered
the province’s labour market – and their numbers will
climb in the coming years – it is important to understand
their experiences, both positive and negative. The report
makes recommendations to government, businesses,
financial institutions and individuals, so that challenges and
opportunities facing B.C.’s growing ranks of independent
workers can be better addressed.
Self-employment rates across Canadian provinces, May 2018
Self-employment rates (%) across Canadian provinces
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0 0
Self-employment rates
Canada Alberta
B.C. Saskatchewan
Source: Statistics Canada, Table: 14-10-0288-01 (formerly CANSIM 282-0089)
The shifting employment landscape
Independent work in B.C. is not dominated by any single
industry. Nor are independent workers represented by
one demographic cluster; they come from all backgrounds
and age groups. But they have this in common: all of them
are self-employed. To understand the independent work
experience and why it is so common in B.C., one must first
consider why the province is a self-employment leader, and
what that means for workers.
Among Canadian provinces, only Saskatchewan (18%) has
a higher rate of self-employment than B.C. (17.8%).11 When
farmers are removed from the equation, B.C. has Canada’s
highest proportion of self-employed workers (17.3%). That is
almost 3% higher than the national average, a difference that
represents 62,200 self-employed workers in the province,
or more than the total number of people working in B.C.’s
forestry, fishing, mining, quarrying and oil and gas industries
combined.12 Among Indigenous people living off-reserve in
B.C., slightly less than 14% were self-employed in 2016.13
Most age groups in B.C. have recorded gains in self-
employment over the past few decades, but the rate of
growth is especially strong among seniors, those aged 65
years and up. A dozen years ago, seniors accounted for just
6% of the province’s self-employment workforce. A decade
later, they represented 12% of the total – about 50,000
workers, almost enough to fill B.C. Place stadium.14 From 2011
Self-employment rates (%) across Canadian provinces,
excluding farming
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
Self-employment rates, excluding farming
Manitoba Quebec Nova Scotia Newfoundland &
Labrador
Ontario New Brunswick PEI
Source: Statistics Canada, Table: 14-10-0027-01 (formerly CANSIM 282-0012)
to 2016, the number of self-employed British Columbians
aged 65 and up increased by 42%. Among female seniors,
the increase was an astonishing 88%.15
These increases can be explained by a variety of factors: seniors
have higher average levels of work experience and strong
professional networks, which helps them find jobs. Because
they are living longer than ever before, especially women,
they require more funds to see them through their later
years. And poverty among seniors in B.C. has been rising: we
now experience the highest rate of poverty among seniors in
Canada, at 8.8%.16
The average retirement age for Canadian self-employed
workers is now 68 years; that’s more than a year older than
the average retirement age recorded in 2013, and more than
six years older than the average age of retirement for public
sector employees.17 The self-employed are working more
hours per week, as well: an average of 36.5 hours in B.C. in
2016. Almost 25% worked at least 50 hours a week in 2016.
For regular employees, the average work week was 35 hours,
and only 4% worked 50 or more hours per week.18
Given their life and career experiences, independent work
such as part-time consulting can come naturally to older
British Columbians. But many stay in the market out of
necessity. As Statistics Canada reported last year, events
such as the 2008-2009 recession and ensuing global financial
crisis “contributed to the increase in seniors’ work activity.” 19
3
Self-employment gender gaps exist. While men represent
a majority (62%) of B.C.’s self-employed workers, the
province has more self-employed women (6.7%) as a
share of its total workforce than every other Canadian
province. A disproportionate number of them have insecure
employment. Close to half (46%) of B.C’s self-employed
female workers are in the least affluent work category –
unincorporated self-employed with no help. That is a 10%
increase since 1976.20
B.C.’s unique economy and job mix are key factors behind
the province’s higher-than-average self-employment rate –
and by extension, the nature of its independent work. On
a per capita basis, B.C. has more self-employed workers in
the education, information, culture and recreation sector
than all other Canadian provinces. But four other industries
are driving the province’s self-employment numbers:
construction work and related trades; professional, scientific
and technological services; health care and social assistance;
and the so-called FIRE sector – finance, real estate, rental
and leasing. Combined, these four sectors account for more
than half (51.4%) of B.C.’s self-employment jobs.21 Two of
them – construction and FIRE – are directly connected to
the province’s red hot real estate industry. And all but one –
the health care and social assistance sector – pay wages at a
rate higher than the B.C. average.22
Numbers like these help explain why B.C. is a self-
employment outlier: people go where the work is. The
province has a strong economy and the country’s lowest rate
of unemployment.23 But with few corporate head offices
relative to its population and a shrinking manufacturing
sector, workers are turning to sectors currently recording
significant self-employment growth.24
What is the gig experience really like, from the workers’
perspective? Vancity’s 2018 survey provides some answers.

Percentage of self-employment in B.C. by sector

Construction

Professional, scientific and technological services

Health care and social assistance

Finance, insurance, real estate, rental and leasing

Wholesale and retail trade

Other services (incl. mechanics, car repair, laundry,

funeral and religious services, pet care etc)

Business, building and other support services

(inc. security, waste management, admin, hiring, cleaning)

Information, culture and recreation

Transportation and warehousing

Educational services

Accommodation and food services

Manufacturing

Agriculture

Forestry, fishing, mining, quarrying, oil and gas

0 2% 4% 6% 8% 10% 12% 14% 16% 18%

Statistics Canada, Table: 14-10-0027-01
(formerly CANSIM 282-0012), 2017 B.C. Canada

4
 Percentage of B.C. self-employed workers by...

The gig economy is nothing new. Nature of work

And it is everywhere.
Anyone who has ever hired a local handy person to make
some home repairs, paid a babysitter or used a ride-hailing
9%
service such as Uber Technologies Inc. or Lyft, Inc. has 8%
participated in the gig economy.

“The gig economy is defined as an ‘environment in which 8%

temporary positions are common and organizations
contract with independent workers for short-term
engagements,’” writes U.S. author Jeffrey Hayzlett.25 It goes 74%
back to at least the mid-1940s, when businessman William
Russell Kelly founded an eponymous office staffing agency.
His so-called Kelly Girls were hired on a temporary basis
by companies that weren’t interested in hiring full-time
workers. Kelly Girl Service, Inc. was, in effect, one of North
Project based with multiple clients
America’s first outsource providers.
Short-term contract (less than one year) with
When people talk about gig work these days, “they mean
one client at a time
jobs that have a high degree of autonomy, payment by
task, assignment or sales, and a short-term relationship Long-term contracts (one year or more) with
between worker and client,” and it also “encompasses one client at a time
people who provide labor services as well as those who None of these apply to me
sell goods or rent assets,” reads a 2016 paper from the
McKinsey Global Institute.26 By that definition, people who
rent out rooms in their houses and apartments using digital
platforms such as Airbnb, Inc. are gig workers. History of working status

The gig economy is by definition entrepreneurial. Hence

the associated term “solopreneur,” used to describe
independent workers who run their own businesses 8%
alone, without full-time employees. Examples can include
“professionals” such as accountants, lawyers, even doctors. 29%
Solopreneurs often contract with other gig workers for
technical support and office management.

According to a recent New York Times article, even airline

pilots can be classified as gig workers. Ryanair DAC, an Irish 63%
low-cost airline, “controls its expenses by using a mix of
full-time employees and self-employed pilots recruited
though outside agencies,” notes the Times. “As contractors,
[Ryanair pilots] didn’t receive standard benefits for
pensions or health insurance.” Calls to reform the airline’s
“contractor model” were rebuffed by airline executives, Always been independent
leading to unionization attempts.27
Employed first in a traditional job
and then became independent

Various periods of traditional

and independent

Source: Vancity gig work survey, April-May 2018, n=202

5
The gig life, for better or worse
B.C.’s gig workers are not just independent; they are fiercely
independent. This is clearly demonstrated in the Vancity
gig economy survey results. As mentioned previously, 83%
of the more than 200 independent workers surveyed say
that given a choice, they would take self-employment over
traditional work with a company or organization. And 80%
of those surveyed say they are self-employed by choice.
Other studies mirror these findings. A 2016 report from
the U.S-based McKinsey Global Institute found that
most people do independent work by choice, rather
than necessity, and that “people who actively chose their
working style reported greater satisfaction than those
who felt forced by circumstance.”28 A 2017 study by MBO
Partners, Inc. concluded that, “Now more than ever, it
is apparent that people are independent by choice…
Independents are not just an undifferentiated mass of
young Uber drivers, those working because they can’t find
full-time jobs, or older quasi-retired consultants. Rather,
independents, who now represent about 31 percent of
the private U.S. workforce, are distributed across every
demographic, age, gender, skill, and income group.”29
There are numerous reasons why people enter the gig
economy by choice, but making lots of money doesn’t top
the list, at least not in B.C. Almost 80% of the Vancity survey
respondents say they expect their self-employment income
to increase from this year to the next. But here is the rub:
only one-quarter of respondents reported a net income
of $50,000 or more last year, with female respondents
more likely than men to have reported a net income of
less than $50,000.30 This corresponds with data from
Statistics Canada and other organizations which confirm
the continued presence of long-standing financial gender
gaps. B.C. women, for example, are paid less than their male
counterparts, are more often engaged in lower paying work,
and are more likely than men to work part-time due to other
commitments such as unpaid family work.31

Employment choices

Percentage self-employment by choice or necessity Percentage self-employment (choice vs necessity) by age

100%
Choice
All
90%
82% 84%
80%
Necessity 80%
20% 8%
73%
18-34
70%
28% 60% 35-45

50% 45+
40% 27%

80% 30%
20%
18%
20% 16%

10%
0%
Choice Necessity
Source: Vancity gig work survey, April-May 2018, n=202

6
 Net income

Percentage of self-employed workers in B.C. by...

Net income: all ages Net income: ages 18-34

1%

6%
20%
19%

75% 79%

Under $50,000 Under $50,000

$50,000 to $100,000 $50,000 to $100,000
$100,000+ $100,000+

Net income: ages 35-44 Net income: ages 45+

6%
15%
19%
18%
67% 75%

Under $50,000 Under $50,000

$50,000 to $100,000 $50,000 to $100,000
$100,000+ $100,000+

Source: Vancity gig work survey, April-May 2018, n=202

7
Education

Percentage of B.C. self-employed workers by education Education by gender

70% 64%
6% 60%

16% 50% 47%

40%

30%
58% 24%
20% 19%
19% 20%
13%
9%
10%
4%

0%
Some or Some college, Completed Completed one
completed university community or more university
high school college/technical degree programs
school
Completed one or more Some college, university
university degree programs Male Female
Completed community Some or completed
Source: Vancity gig work survey, April-May 2018, n=202
college/technical school high school

The Vancity gig economy survey found other gig work gender
differences as well. For example, men were statistically more
likely than women to agree that “earning more money than
traditional jobs” is the single biggest advantage to working solo.
Women, on the other hand, were statistically more inclined to say
the single biggest advantage to independent work is “a flexible
work environment” and the freedom to “be your own boss.”
On balance, however, male and female independent workers
in B.C. have common experiences and outcomes. Almost
two-thirds (63%) of all survey respondents say they have
enough income to meet normal living expenses, and are
satisfied with their current standard of living. Almost half
(49%) say they feel “fully capable” of repaying any debt
or loan obligations they may have. And strong majorities
express satisfaction with their overall sense of well-being and
their overall quality of life. Among all independent workers
surveyed, 69% said they value “work flexibility” over “making
money.” Older workers – aged 45 and up – were statistically
more likely than their younger counterparts to cite a flexible
work environment as the single biggest advantage to gig work.
That’s the good news. The bad? Just 44% of independent
workers surveyed say they feel secure in their current work
situation. Even more (55%) say they experienced stress related
to their self-employment, at least once a month in the past
year. Meanwhile, a paltry 20% say they are on track with their
retirement savings needs. Among independent workers aged
35-44, that figure drops to just 10%.
It is clear, then, that despite all the advantages that survey
respondents attach to independent work, many of them are
challenged. That becomes even more evident when their
answers to questions around benefits commonly associated
with full-time, permanent work are examined.
Half of those surveyed say they do not currently have
access to extended health care and dental care plans (the
other 50% indicate they have access via their own plan or
someone else, such as a spouse), and 87% have no access
at all to any sort of workplace-funded pension plan. Even
basic life, disability, critical illness and accidental death
and dismemberment insurance coverage are missing for
the majority of independent workers surveyed. Yet most
respondents say all of those plans and types of coverage are
important to them.
The survey also adopted questions from Vancity’s Well-Being
Index, in which members of the general public are asked
on a regular basis to rate their levels of satisfaction – on a
scale from one to 10, with 10 being “completely satisfied” –
around certain life matters. The independent workers whom
Vancity surveyed are less satisfied than the general public
when it comes to their “financial security,” “time for leisure”
and “standard of living.” On the other hand, the survey
respondents are more satisfied with what they are “achieving
in life” and with their “quality of life.”32 This demonstrates
once again that independent work offers both advantages
and disadvantages to those engaged with it.

8
Biggest advantages/disadvantages

Percentage of B.C. self-employed workers identifying the following as the biggest advantages of self-employment, by gender

30% 28% 28%

27%

25% 24%
23% 23%
21%
20%
20% 18%
17% 17%
15% 15%
15%
10%
10%
7%

5% 3%
1% 1% 1% 1%
0%
0%
Freedom to be Flexible work Work/life Freedom to choose Earning more Turning off None of the
your own boss environment balance what jobs/clients money than when you want above
you take traditional full-time
jobs

All Males Females

Biggest disadvantages of self-employment, by gender

40%
37% 37%

35% 33%

30%

25% 24%
21%
20%
17%
14% 14%
15% 13% 13% 13%
12%
11%
10% 8%
8%
6% 6% 6%
5%
5% 2%
1%
0%
Not having financial Not having access Never being able Worrying about Taking on Lack of job None of the
stability/stable to employer-paid to completely getting the financial risk security above
income health and vacation turn off next job
benefits

All Males Females Source: Vancity gig work survey, April-May 2018, n=202

9
Financial situation by age and by gender

Percentage of B.C. self-employed workers agreeing with the following statements

70%
63% 64% 63% 64%
62%
60%
60%
55%
51% 52%
49% 50% 50%
50% 46%
43% 44% 44%
41% 40% 41%
40% 37%
35% 35%
35% 34%
31%
30% 26%

20% 19%
20% 17%

10%
10%

0%
I have enough income I maintain sufficient savings I am on track with I am fully capable of I feel secure in my
to meet normal living to cover my expenses in my retirement repaying any debt or current work situation
expenses case of sickness, job loss, savings needs loan obligation I have
economic downturn

All 18-34 Males

35-44 Females
45+

Well-being index

B.C. independent workers who are somewhat to completely satisfied (scale of 1 - 10, with 10 being completed satisfied) with...

10
9
8
7
6
5
4
3
2
1
0
Their standard Their financial What they are Amount of time Feeling part of Their overall Their over-all
of living security achieving in life they have for their community quality of life sense of
leisure well-being

General 18-34 Males

Population
35-44 Females
Independents
45+ Source for General Population: Vancity Wellbeing index, Q4, 2017
Source: Vancity gig work survey, April-May 2018, n=202

10

Millennials and the gig economy
People might assume that Millennials – people aged
18 to 34 years – are the demographic group most
inclined to choose gig work, with the freedoms and
autonomy it offers. But research shows that isn’t
necessarily the case. In B.C. between the years 2011 and
2016, there was no increase in self-employment among
people aged 15 to 34 (although there was a 7.1% increase
in the more narrow 25-to-34-year-old cohort).33 More
to the point, a 2016 survey by PriceWaterhouseCoopers
revealed that millennials are two times less likely to
desire independent work than those aged 50 and older.
“Whereas pre-recession [December 2007 to June
2009] Millennials entered the workforce in an era of
prosperity – they had plenty of opportunities in a job
market in which demand for employees was high – they
now enter into their 30s in a tenuous economy,” notes
the PriceWaterhouseCoopers report. “In this context,
security and reliability have become more important.”34
Another survey, from May 2018, found that while
Canadian Millennials “report flexibility and work-life
balance as benefits with working gig jobs, 87% of them
say they have a concern with this type of employment.
One top concern expressed by Millennials is the lack of
health and dental benefits…Canadian Millennials also
expressed that lack of job security (61 per cent), income
volatility (41 per cent), no paid vacation time (38 per
cent) and no pension (32 per cent) are other concerns
with working gig jobs.”35
Platform work and the Uber effect
What does the future hold for B.C. workers? Some think
the future has already arrived; indeed, the trend towards
independent work in this province has already been
established. But another wave may be coming. Technologies
and micro-industries that encourage gig work have been
around for years, but they are just starting to gain footholds
in B.C. Well-established digital platforms such as TaskRabbit
– acquired by retail giant IKEA Group in 2017 – and emerging
rivals including Toronto-based AskforTask match clients
online with workers willing to perform odd jobs, anything
from babysitting to catering to bookkeeping. Joining the
mix are a plethora of web-based “experts” and “advisors”
who offer job-seekers tips on how to get involved with the
digital job platforms.
11
They are, in the words of one enthusiastic promoter, “one of
the best places you can start with the gig economy….You’ll
quickly realize that there are hundreds of ways you can sell
yourself on these platforms, and setting your own hourly rates
means you can take freedom with how much you earn.”36
Not everyone shares this happy perspective. American
columnist Robert Kuttner describes TaskRabbit as “the
reserve army of the unemployed made flesh. What’s
diabolically brilliant and emblematic about the company is
that prospective errand-runners bid against one another for
jobs. To get an assignment, an aspiring Rabbit offers to do the
chore for less money than he or she thinks other prospective
Rabbits are bidding. That’s what makes it a metaphor for the
new economy, a dystopia where regular careers are vanishing,
every worker is a freelancer, every labor transaction is a
one-night stand, and we collude with one another to cut
our wages. At the rate things are going, tens of millions of us
could end up in the role of Task Rabbits.”37
While there may be some truths in this account, it overlooks
the fact that in survey after survey, most workers already
engaged in the gig economy say they would prefer not
to have standard jobs and “regular careers.” And it likely
overstates the influence that digital platforms – despite
their proliferation – are having in the gig economy and in
the lives of gig workers. A 2017 U.S. study found that 20% of
“full-time independents” had used an online marketplace in
the previous 12 months, with 25% saying they intended to
do so in the next 12 months.38
Participation rates in digital platforms appear to be even
lower in Canada. A 2017 study by the Canadian Centre for
Policy Alternatives found that of 2,304 people surveyed in
the Greater Toronto Area, only 9% said they had worked or
currently worked in the “shared economy,” which the Centre
described as “businesses that use an online platform to
enable customers to purchase services on demand.”
Here at home, 87% of the 202 independent workers who
participated in the Vancity survey say they do not use online
platforms as an income source. But it is likely that more
British Columbian workers will become involved in digital
work and job sharing platforms in the coming months and
years, especially with popular ride-hailing companies such as
Uber and Lyft preparing to begin operations in the province.
Not to be confused with car-sharing – a business model that
gives members access to a commercial fleet of cars for their
personal use – ride-hailing has customers going online to
request a ride as a passenger in a private vehicle driven by its
owner. For their part, the car owner takes assignments from
the company that controls the digital platform, or “app,” and
the owner pays a commission to the company for each fare.
Ride-hailing has been the subject of considerable debate
in B.C., where it remains unregulated and officially illegal.
Traditional taxi cab drivers and companies have argued that
ride-hailing threatens their livelihoods, sometimes with
tragic consequences.39 They say that in other locations,
Uber has diverted significant passenger traffic from taxis. In
Los Angeles, for example, pre-arranged taxi trips dropped
by 42% and taxi trips overall had fallen nearly 30% by 2016,
after nearly three years of Uber operations in the city.40
Meanwhile, ride-hailing companies such as Uber have been
criticized for cutting its fares and forcing its contractors to
drive longer hours in order to generate the same income
they had earned previously.41
Others insist that ride-hailing is long overdue, pointing
out that Metro Vancouver is the most populous Canadian
region where rules do not allow for it. In response
to consumer demand, a number of unregulated and
unsanctioned ride-hailing outfits have appeared in
Metro Vancouver. In response, the province’s Ministry of
Transportation, through its Passenger Transportation Branch,
has issued more than 20 cease-and-desist orders to vehicle
owners and has issued dozens of fines to ride-hailing drivers
deemed to have operated without a license.42
Following public consultations and after receiving
recommendations from a select standing committee that
looked at transportation issues across the province, the
provincial government intends to introduce ride-hailing
legislation by autumn 2018, with service expected the
following year.43 Based on participation rates and public
demand in other provinces, such as Ontario, it can reasonably
be expected that hundreds – perhaps thousands – of British
Columbians will sign up for ride-hailing gig work.44
Mitigating risks and meeting
challenges
Independent workers often work alone and in unfamiliar
environments, putting them in situations in which they
may feel vulnerable or even at risk. Consider what a self-
employed house cleaner might experience when entering
a new client’s home for the first time. Or the risks a driver
faces every time they pull away from a curb. Or the
occupational hazards an independent contractor meets
when using power tools or dangerous materials.
Like all Canadian citizens and residents of Canada,
gig workers in this country have certain rights that
are protected by laws and human rights codes. But
those protections extend only so far; it is crucial that
independents understand the degree to which their
personal work situation may leave them exposed to
12
personal risk and financial liability. “A shift to gigs marks a
shift in responsibility from employers to workers,” Business
in Vancouver magazine noted recently. “Employees are
entitled to certain rights and protections under the
[provincial] Employment Standards Act and the Human
Rights Code. But those same protections are not extended
to independent contractors, which leaves a growing
population segment vulnerable.”
“As the law stands,” one local labour lawyer told the
magazine, “[independent workers are] not very well
protected, because it’s only people who fall into that
real definition of employees who are entitled to things
like notice or severance on termination. Only employees
get employee insurance, maternity leave, parental leave,
minimum wages.”45
Gig workers, on the other hand, must negotiate their own
working conditions and keep their own records of hours
worked, payments received and other matters. The People’s
Law School, a B.C. not-for-profit that provides free legal
education, suggests that before an independent worker
begins a job, they should “estimate the hours it will take,
how much money you should be paid, what extra costs there
might be such as supplies for your business and how these
costs will be paid. Keep track of your hours and expenses. If
Canada Revenue Agency (CRA) has deemed you to be self-
employed, you will not receive a T4 for income tax purposes.
You must use your own records to report your earnings
and remit your own taxes to CRA. If you have one or more
individuals working for you, they may meet the [Employment
Standards] Act’s definition of employee. This would likely
make you their employer. You must familiarize yourself with
your responsibilities as an employer under the Act.”46
Gig workers have other challenges that regular employees
in an office or group environment may not experience.
Loneliness, for example. But independent workers need
not feel isolated or cut off from their peers. Opportunities
for sharing work space – also known as co-working – are
growing in Metro Vancouver and other urban centres.
Co-working environments foster working communities and
help independents minimize their costs, such as rent and
equipment fees.
Worker co-operatives are increasingly popular among gig
workers, as well. “Pooling resources can create opportunities
for decent work that will improve productivity, transparency,
worker autonomy and, most importantly, workers’ quality of
life,” says Co-operatives and Mutuals Canada.47 It points to
models developed in other countries, such as SMarteu, a co-
operative platform based in Belgium that pools resources of
independent worker members and helps provide them access
to insurance products and invoicing and collection systems.
It also operates a cash fund that workers can tap into when
necessary, removing “the worry of unpredictable cash-flow.”48
A broader movement in Europe to protect and enhance
programs for “irregular workers” is now underway, with
the European Commission recommending earlier this
year that independents receive minimum levels of social
security protections such as unemployment benefits
and maternity leave. “As labour markets evolve, social
protection systems too need reforms to make our social
model fit for purpose, ensuring that no one is left behind,”
the commission said in March.49
The U.S.-based Freelance Union offers similar insurance
products to more than 375,000 independent worker
members. It also advocates and lobbies governments, and
says it recently led a “victorious campaign to enact first-
of-its kind legislation in New York City giving freelancers
unprecedented protections from nonpayment.”50
While there does not appear to be any Canadian equivalent
to SMarteu and the Freelancers Union, the need has been
identified; in fact, Co-operatives and Mutuals Canada
recommends that SMarteu be allowed to operate in Canada,
and it encourages the federal government to create a new
category of “autonomous workers…defined as persons
who perform services comparable to those provided
by employees and under similar conditions, but whose
contractual arrangements with the employer distinguish
them from employees.”51
Pooling resources is one way that independent workers
can mitigate their financial challenges, but other strategies,
as outlined in the following recommendations, should be
considered and adopted where appropriate.
Recommendations
Governments
• Gather and report data on independent workers through
census-taking to better understand this segment of the
working population.
• Increase the minimum wage to $15 (now planned in B.C.)
and move to make the new minimum wage a Living Wage.
• Consider novel tax credits for independent workers.
• Consider pooled retirement pension solutions for
independent workers.
• Develop employment insurance options to support for
independent workers who are between gigs. For example,
basic income and income support plans.
13
Companies and Organizations
• Become Living Wage employers, and extend the Living
Wage to contractors and temporary workers, and to
workers in supply chains on which you depend.
• Review and enhance policies on how independent
workers, contractors and temporary workers are
treated in the workplace, and set limits on how long an
independent worker remains independent before being
“regularized” and put on payroll.
• Facilitate social engagement and networking
opportunities for non-standard workers.
Financial Institutions
• Offer financial tools such as lines of credit and mortgages
that are inclusive of independent workers and do not
exclude them based on their uneven cash flow.
• Develop insurance and financial products that are
inclusive of independent workers needs, including
automatic savings plans for GST remittances and other
supports to help manage cash flow.
• Identify opportunities to support worker-owned
co-operatives and develop investment pools to help
capitalize start-up worker co-ops.
Individuals
• Develop literacy around social safety net protection,
legislation and taxation as they relate to self-employment.
Become familiar with employment standards in B.C. and
how they do not apply to all workers in the province,
including independents.
• Take steps to understand the appropriate Government
of Canada employment status classification in each
relationship and job situation; for example, employee
versus independent contractor.
• Learn about existing insurance and financial products
and services, and determine which ones may work for
themselves and their co-workers.
• Join groups or pools of other independent workers to
share information and create resources they cannot
access on their own. Examples include the Canadian
Freelance Union, the Canadian Worker Co-op Federation
and the Association of Professional Canadian Consultants.
Methodology
Vancity’s survey of independent and self-employed
workers (the gig work survey) was conducted April 12
to May 6, 2018. Majid Khoury Holdings Inc. supported
the survey project management, design and analysis. A
10-minute online survey was distributed to the general
public through various social media channels and other
Vancity networks. The survey included screening questions
to only allow those who qualify as gig economy workers
to complete the survey. As a result, a total of 202
responses were collected, consisting of 137 independent/
contract workers and 65 solopreneurs with no employees.

To ensure proper targeting, all respondents were screened

to meet the following criteria: Adult 18+; identifies as a
solopreneur, independent/contract worker.

Given the survey was distributed online through social

media and Vancity networks and that respondents have
self-selected to complete the survey, the research sample
may not be representative of gig economy workers at
large. As such, it is not appropriate to assign accuracy levels
to the data. With the absence of current representative
samples or panels for this target, it is impossible to have a
representative sample of this group.

Vancity recognizes that this report discusses gender in

binary terms – as male and female – and does not examine
and compare the independent work experience among
people with other identities and expressions, such as trans+,
gender variant and two-spirit, who represent about 1 in
200 people. Statisticians, researchers and analysts should
consider that primary data collection and reporting related
to employment can reach beyond gender binary terms and
responses. The Vancity survey included two respondents
who identified as neither male nor female.

Vancity is not responsible for the accuracy of secondary

research contained in this report.

Vancity would like to thank Peter Hall, Associate Member

of the Department of Geography at Simon Fraser University,
for his help with interpreting certain Statistics Canada
self-employment data contained in this report.

14
References
1. Statistics Canada, Table: 14-10-0288-01 (formerly CANSIM 282-0089), data collected March 2018

2. Upwork and Freelancers Union, “Freelancing in America: 2017,” October 17, 2017
www.upwork.com/i/freelancing-in-america/2017/

3. Vancouver Sun, “Andrew Cash: Public policy must create standards for independent workers,” February 26, 2018
vancouversun.com/opinion/op-ed/opinion-public-policy-must-make-independent-work-better

4. B.C. Data Catalogue, “Issue 17-104: 2016 Census: Household Income in Canada Highlights,” September 13, 2017
www2.gov.bc.ca/gov/content/data/statistics/infoline/infoline-2017/17-104-2016-census-household-income

5. Canadian Centre for Policy Alternatives, “Long Overdue: Why BC needs a poverty reduction plan,” January 2017
www.policyalternatives.ca/sites/default/files/uploads/publications/BC%20Office/2017/01/
ccpa-bc_long-overdue-poverty-plan_web.pdf

6. Library of Parliament, “Precarious Employment in Canada: An Overview of the Situation,”

January 27, 2016 www.hillnotes.ca/2016/01/27/precarious-employment-in-canada-an-overview-of-the-situation/

7. Government of British Columbia, Ministry of Jobs, Trade and Technology “Small Business Profile 2017”
www2.gov.bc.ca/assets/gov/employment-business-and-economic-development/business-management/
small-business/sb_profile.pdf

8. Statistics Canada, Census Profile, 2016 census

http://www12.statcan.gc.ca/census-recensement/2016/dp- pd/prof/details/page.cfm?Lang=E&Geo1=PR&Code1=59&Ge
o2=CD&Code2=5949&Data=Count&SearchText=V0T1W0&SearchType=Begins&SearchPR=01&B1=All&TABID=2

9. Canadian Centre for Policy Alternatives, “Long Overdue: Why BC needs a poverty reduction plan,” January 2017
www.policyalternatives.ca/sites/default/files/uploads/publications/BC%20Office/2017/01/
ccpa-bc_long-overdue-poverty-plan_web.pdf

10. Vancity Gig Economy Survey, April 2018

11. Statistics Canada, Table: 14-10-0288-01 (formerly CANSIM 282-0089). Seasonally unadjusted, May 2018.

12. Statistics Canada, Table: 14-10-0027-01 (formerly CANSIM 282-0012), 2017

13. Government of British Columbia, Ministry of Jobs, Trade and Technology “Small Business Profile 2017”

14. Statistics Canada, Table: 14-10-0283-01 (formerly CANSIM 115-0023).

12. Government of British Columbia, Ministry of Jobs, Trade and Technology “Small Business Profile 2017”

13. Statistics Canada, Table: 14-10-0060-01 (formerly CANSIM 282-0051), 2017

15. Government of British Columbia, Ministry of Jobs, Trade and Technology “Small Business Profile 2017”

16. Global News, “B.C. has the worst poverty rate amonger seniors in Canada: Report,” June 12, 2018
www. globalnews.ca/news/4269147/bc-worst-poverty-rate-seniors-canada-new-report/

17. Statistics Canada, Table: 14-10-0060-01 (formerly CANSIM 282-0051), 2017

18. Government of British Columbia, Ministry of Jobs, Trade and Technology “Small Business Profile 2017”

15
19. Statistics Canada, “Working seniors in Canada,” November 29, 2017
www12.statcan.gc.ca/census-recensement/2016/as-sa/98-200-x/2016027/98-200-x2016027-eng.cfm

20. Statistics Canada, Table: 14-10-0027-01 (formerly CANSIM 282-0012), 2017

21. ibid

22. Statistics Canada, Table: 14-10-0064-01 (formerly CANSIM 282-0072), 2017

23. Toronto Star, “Employment Plateau in B.C. ends three-year trend of job gains,” June 8, 2018
www.thestar.com/vancouver/2018/06/08/employment-plateau-in-bc-ends-three-year-trend-of-job-gains.html

24. Business Council of British Columbia, “Canadian Head Office Survey: How do Metro Vancouver and British Columbia Stack Up?”
January 2016 www.bcbc.com/content/2157/PPv23n1.pdf

25. Entrepreneur, “Is the Gig Economy Killing the 9-to-5 Job? No, But It’s Giving It a Run for Its Money,” March 16, 2018
www.entrepreneur.com/article/310368

26. McKinsey Global Institute, “Independent Work: Choice, Necessity and the Gig Economy” October 2016
www.mckinsey.com/featured-insights/employment-and-growth/independent-work-choice-necessity-and-the-gig-economy

27. New York Times, “Jet Pilot Might Not Seem Like a ‘Gig,’ but at Ryanair, It Is” November 16, 2017
www.nytimes.com/2017/11/16/business/ryanair-pilots.html

28. McKinsey Global Institute, “Independent Work: Choice, Necessity and the Gig Economy,” October 2016

29. MBO Partners, Inc., “The State of Independence in America: Rising Confidence Amid a Maturing Market,” 2017
www.mbopartners.com/uploads/files/state-of-independence-reports/StateofIndependence-2017-Final.pdf

30. Given the survey was distributed online through social media and Vancity networks and that respondents have self-
selected to complete the survey, the research sample may not be representative of gig economy workers at large.
As such, it is not appropriate to assign accuracy levels to the data.

31. Vancity report, “Money Troubled: Inside B.C.’s financial health gender gap
www.vancity.com/SharedContent/documents/News/Financial_Health_Mar2018.pdf

32. Vancity’s Well-Being Index is modeled after the Personal Well-Being Index, developed by the Institute for Well Being in
Australia. It comprises 10 survey questions covering 10 dimensions of well-being on which respondents are asked to rate
their level of satisfaction from 1 (completely dissatisfied) to 10 (completely satisfied). Each survey question represents a
unique dimension of well-being. These dimensions are weighted equally and averaged to produce an overall well-being
score out of 100. In this report, results from Vancity’s Q4 2017 Well-Being Index are compared to responses to the April
2018 Vancity gig worker survey.

33. Government of British Columbia, Ministry of Jobs, Trade and Technology “Small Business Profile 2017”

34. PriceWaterhouseCoopers, “Work-life 3.0: Understanding how we’ll work next,” 2016
www.pwc.com/us/en/services/consulting/library/consumer-intelligence-series/work-life.html

35. TD Insurance, “The Gig Generation: addressing the challenges of a new workforce,” May 29, 2018
www.newswire.ca/news-releases/the-gig-generation-addressing-the-challenges-of-a-new-workforce-683921101.html

36. Zack Young, “Platforms You Must Use to Benefit from Gig Economy Jobs,” April 13, 2017
www.glassdoor.co.uk/blog/platforms-must-use-benefit-gig-economy-jobs/

37. The American Prospect, “The Task Rabbit Economy,” October 10, 2013
http://prospect.org/article/task-rabbit-economy

16
38. MBO Partners, Inc., “The State of Independence in America: Rising Confidence Amid a Maturing Market,” 2017

39. New York Times “A Driver’s Suicide Reveals the Dark Side of the Gig Economy,” February 6, 2018
www.nytimes.com/2018/02/06/nyregion/livery-driver-taxi-uber.html

40. Los Angeles Times, “Uber and Lyft have devastated L.A.’s taxi industry, city records show,” April 14, 2016
www.latimes.com/local/lanow/la-me-ln-uber-lyft-taxis-la-20160413-story.html

41. Observer, “Uber Drivers Plan Boycott After Fare Cuts Slash Their Earnings to Below Minimum Wage,” January 19, 2016
www.observer.com/2016/01/uber-drivers-plan-boycott-after-fare-cuts-slash-their-earnings-to-below-minimum-wage/

42. National Post, “Underground ride-sharing services thrive in B.C. – if you speak Chinese,” April 5, 2018
nationalpost.com/news/canada/underground-ride-sharing-services-in-b-c-appear-to-be-thriving-amid-crackdown

43. Global News, “Ride-hailing not coming to British Columbia until fall of 2019,” July 19, 2018
www.globalnews.ca/news/4341276/ride-hailing-not-coming-to-british-columbia-into-fall-of-2019/

44. CBC News, “Uber’s biggest rival Lyft eyes Toronto expansion by year end,” November 13, 2017
www.cbc.ca/news/canada/toronto/lyft-toronto-expansion-ride-sharing-1.4399892

45. Business in Vancouver “B.C. laws lag behind fast-rising gig economy,” August 29, 2017
www.biv.com/article/2017/08/bc-laws-lag-behind-fast-rising-gig-economy

46. People’s Law School, “Working in BC: Your Legal Rights and Responsibilities,” 2014
www.peopleslawschool.ca/file/248/download?token=2gUJ2CWH

47. Co-operatives and Mutuals Canada, “Shifting Patterns in Modern Work,” unpublished, 2018

48. SMarteu website, accessed June 6, 2018 http://smart-eu.org/about/

49. Financial Times, “EU seeks greater protection for gig economy workers,” March 13, 2018
https://www.ft.com/content/dff6d21a-26cc-11e8-b27e-cc62a39d57a0

50. Freelancers Union website, accessed June 6, 2018 www.freelancersunion.org/about/

51. Co-operatives and Mutuals Canada, “Shifting Patterns in Modern Work,” unpublished, 2018

52. The Journal of Sex Research, “Sex and Gender Diversity Among Transgender Persons in Ontario, Canada: Results
from a Respondent-Driven Survey,” April 24, 2014
www.transpulseproject.ca/research/sex-gender-diversity-among-transgender-persons-ontario-canada-results-
respondent-driven-sampling-survey/

17