The story behind WageIndicator: 25 years of transparency on work and income worldwide

WageIndicator Foundation increases transparency about work and income worldwide. Martijn Arets of The Gig Work Podcast speaks to co-founder Paulien Osse about the successes, challenges and goals of this unusual organisation.

Once you are familiar with the WageIndicator Foundation, you will see its work everywhere. For almost 25 years, this foundation has been working from the conviction that all workers, employers and institutions should have access to the right information about income and rights. WageIndicator is committed to the belief that transparency leads to fairer incomes and good working conditions.

WageIndicator is an international organisation for which hundreds of people work. They all do so remotely from their native countries. They collect, analyse and share information on wages, minimum wage, living wage, living income, living tariff, labour laws, gig and platform work, collective agreements (CBAs) and much more. What started with an inclusive online Loonwijzer in the Netherlands has grown to more than 200 websites with labour market information across 208 countries. By 2021, the websites together had more than 40 million visitors.

At her home in Bussum, I meet Paulien Osse, the co-founder of this extraordinary organisation. In the latest episode of The Gig Work Podcast, she tells the story of this quirky organisation.

Salary check only for white men: ‘Could be better’

Osse is a journalist by origin. Early in her career, she wrote mostly about poetry, literature and theatre; later she found socio-economic topics more interesting. She travelled the world in search of stories, especially in Southern Africa, Latin America and Turkey. The wage gap between men and women was much wider 25 years ago than now, Osse says. “I always got less for a story or photo than male journalists,” she says. “And in the countries I visited, the inequality was even worse.”

The inspiration for Loonwijzer came from Intermediair’s existing Salary Compass in the Netherlands. “At the time, that was really only applicable to white middle-class men,” Osse says. “That could be better.”

At the time, she was working for the Dutch trade union FNV on a membership information website. She convinced the union that an inclusive salary check was a good fit for it. Together with scientist Kea Tijdens from the University of Amsterdam, she collected data and built Vrouwenloonwijzer.nl. Later it became Loonwijzer.nl, a website with work and wage information for everyone. Because the loonwijzer is only good and could grow independently, they thought it smarter to develop it further in a separate foundation outside the union.

‘Almost’ worldwide

“We now have websites in hundreds of countries,” Osse says. She is strict on the facts: WageIndicator Foundation operates ‘almost’ worldwide. Only a few countries are still missing. “Growing was not easy, as we had no money for a long time,” she says. “We were often tipped to focus on richer countries, where we would find lenders more easily. But that was exactly what we did not want, and I am glad we always stuck to that point of view. After all, even in poor countries, people need information on income and labour law.”

WageIndicator even has information on North Korea and all regions of China and Russia, she proudly explains. “We really want to be inclusive, we mean it.”

How do you build such a huge international network? Osse gets that question often and she has no golden tip. It almost came naturally, she says. “I was an international journalist so I already had a network in several countries. The university and the unions brought their own international contacts.”

‘We don’t have to see and smell each other’

People love working for WageIndicator and those who start working for the foundation once stay involved for a long time. There are nearly 300 employees working in more than 100 countries. It is a mix of full-timers, part-timers and students. There is no bureaucracy, and the input of interns is valued as much as that of veterans.

I can agree that it is a fun, quirky organisation, as I have been part of the team for over two years now. “There is a creative atmosphere,” says Osse. “Everyone loves making and working together. If you want help or information, you get a quick response.” Everyone works remotely and perhaps that is the secret, says Osse. “We don’t have to see and smell each other. As a result, maybe we tolerate and appreciate our colleagues longer.”

From minimum to living wage

WageIndicator started with information on salary, labour laws and minimum wage. But for some 80% of the world’s population, a minimum wage is not enough to live on, Osse knows. That is why, since 2014, the organisation also publishes the living wage or ‘living wage’. “That is the income someone needs to have a house, enough to eat and maybe a bicycle,” she says. “It is the minimum salary for a decent living.”

But not everyone gets a salary from a boss. That is why WageIndicator also calculates a “living income”, a living wage for entrepreneurial families who own a shop or farm, for example.

Third category: living tariff for platform workers

“Besides employees and entrepreneurs, there is another growing group of workers: gig workers or platform workers,” says Osse. “They do not work for a permanent employer, but they are not traditional entrepreneurs either. They work by the minute or by the hour, rather than by the month. With their way of working comes another kind of income: the ‘living tariff'”

Platform companies themselves came to WageIndicator asking for a living tariff, Osse says. “They want to pay decently, but didn’t know how to do it. It is also more complicated than calculating a living wage. What a minimum livable hourly rate is varies from person to person and situation to situation. It has to do with factors such as type of work, number of workable hours, pension and necessities such as a bike, laptop or computer.”

‘The joy is in the creation’

WageIndicator developed the living tariff for the Dutch market and is now developing it together with German GIZ for Indonesia, Pakistan and Kenya. “We especially want to investigate under which conditions such a rate is usable for workers and platform companies,” says Osse. We aim to publish a living tariff for 155 countries by the end of this year.”

Osse stresses that the information on living wages, income and tariffs does not necessarily stem from a mission to improve the world. “The joy is creation. We want to create something useful of good quality. If by doing so we help people on their way to fair remuneration, that’s cool.”

‘Not all platform workers are badly off’

Osse has a clear vision of the political debate on self-employed workers and platform work. “The government and unions are trying to force platform workers into a straitjacket, but that is not the solution,” she says. “Not all platforms are crooks and not all platform workers are badly off. Just really listen to them. They don’t want to be employed, they want freedom to work where, for whom and when they want. Help them with measures to match that.” She hopes the living tariff can contribute to the political debate.

I am working on this project and I expect even greater impact from this project outside than within the platform economy in the end. Platforms tend to ‘formalise’ an existing market like home cleaning and delivery. With this, this rate is also applicable to a huge group of workers who do not work through platforms. After all, for a rate, how client and contractor find each other is irrelevant.

Conclusion

WageIndicator’s story is inspiring in many ways. The foundation is all about serious business – data and income. That requires a solid structure, but it is not hierarchical or rigid. Cooperation is creative, enjoyable and there is plenty of room for initiative. The solid structure behind the scenes actually allows for experimentation.

While many organisations wait to innovate until someone else says it is allowed or pays the bill, WageIndicator works the other way round. The foundation has found a way to develop new projects in such a way that they contribute to the big picture and in turn generate new commissions and collaborations. This unusual way of working attracts the very attention of partners who fit the foundation.

WageIndicator is ambitious and down-to-earth. Everyone still works with one goal: transparency for workers, employers and policymakers worldwide. A topic that is more than relevant in the current labour market debate.

How a code of conduct can empower workers in the gig economy

In Germany, crowdwork platforms concluded a code of conduct about 5 years ago to better serve workers. How successful is this initiative? And what can we learn from it?

In Germany, eight platforms have signed a code of conduct called the ‘Crowdsourcing Code’. This document contains agreed terms, including fair compensation for workers. The code is an initiative of Munich-based software testing platform Testbirds. This case has been mentioned in several surveys, but no one had yet bothered to really dive deep into it. So I boarded a train to Munich on behalf of the WageIndicator Foundation and spoke to Markus Steinhauser, Chief Operating Officer (COO) of crowdwork platform Testbirds and initiator of the code of conduct. In this blog, I share my insights.

How it started

The code of conduct was set up in 2015, when there was a negative perception about platforms in German politics and media. After meeting about this with other platform entrepreneurs, Markus took the initiative for a code of conduct to improve the position of platform workers. Eventually, eight platforms joined. These are all so-called ‘crowdwork’ platforms, where most of the work takes place online. The member platforms collectively serve more than two million platform workers.

The code

The code of conduct focuses specifically on crowdwork, because digital platform workers have different needs than, for example, taxi drivers or delivery workers. The code of conduct is based on a survey of workers and consultation among platforms. There are 10 principles:

  1. Gigs correspond to laws and regulations
  2. Clarification of legal situations
  3. Fair payment
  4. Motivating and good work
  5. Respectful interactions
  6. Clear tasks and within a reasonable time frame
  7. Freedom and flexibility
  8. Constructive feedback and open communication
  9. Regulated approval process
  10. Data protection and privacy

The crowdwork ombudsman

The ‘crowdwork ombudsman’ has also been part of the Code of Conduct since 2017. This is a body to which platform workers can turn in case of questions or conflicts with platforms. Since its establishment, this ombudsman has handled more than 100 cases.

Several voices are represented in the body:

  1. A neutral chairman;
  2. A representative of the German Crowdsourcing Association;
  3. A representative of the German Trade Union Confederation (DGB);
  4. A representative from one of the member platforms;
  5. A platform worker registered with one of the affiliated platforms.

Trade union support

The code of conduct is also officially supported by the German Crowdsourcing Association (“Deutscher Crowdsourcing Verband”), and trade union IG Metall also joined in 2017. The union welcomes this form of self-regulation among platforms, but stresses that the government must eventually come up with regulations as well. This constructive attitude of the union is nice to see. The union movement certainly does not agree with everything the platforms do, but in this way it keeps its finger on the pulse and discovers new opportunities to support working people.

How attention wanes over time

The big challenge of such a code of conduct is how to maintain long-term motivation so that the initiative can grow. In 2015, the project had momentum and urgency, but today the attention of member platforms seems to be waning. Of the eight platforms, only two refer to the ombudsman. Only Testbirds clearly communicates the code of conduct on its website.

Hence, there is no active enforcement. Looking at the website through Waybackmachine.org over the years, nothing seems to have changed for a while. Since 2017, the principles, which are after all quite generic, have not evolved.

How it could be better

In the ideal world, the platforms would further develop the Crowdsourcing Code and actively involve workers in it. They would make the principles much more tangible and adhere to the code seriously. Those who do not would be disciplined for doing so. Platforms would work together to increase the number of affiliates: from platforms to public stakeholders.

In practice, the (mostly small) organisations are mostly concerned with the delusion of the day. Optimising the code of conduct is not part of the organisation’s core business. It is admirable how Markus has been committed to the code for eight years now while expanding his business abroad. But he cannot do it alone. For long-term success, such an initiative needs to be adopted over time by the various stakeholders. It must be worth something for platforms and unions to seriously build such an initiative. After all, trade unions also seem to be ‘guests’ when they could be equal partners.

Over time, the initiators could secure the code in a foundation with its own funding stream. The Ministry of Social Affairs and Employment could join. This would also strengthen the independence and reliability of the code: currently, participation is too non-committal for platforms. Such an initiative deserves much more attention and energy, so that it can grow and increase its impact.

Conclusion

The Crowdsourcing Code is a unique example that shows that it is possible to reach agreements between platforms. In addition, I like the fact that a union dares to cooperate, without approving all activities of platforms.

Although there is still a lot of potential in the initiative, I wonder whether the platforms alone will ever fully realise this. In doing so, it is important that all stakeholders take responsibility and are willing to independently underwrite the initiative. Above all, they must show ambition.

Listen to the podcast with Markus Steinhauser, COO of Testbirds and founder of the Crowdsourcing Code.