Introduction to the Air-Conditioned Lounges for Gig Workers
In recent months, the Greater Chennai Corporation (GCC) has taken steps to improve the working conditions of gig workers, particularly those involved in food delivery services. One such initiative was the launch of air-conditioned lounges in Anna Nagar, aimed primarily at providing a comfortable resting space for workers affiliated with food delivery apps like Zomato. However, this initiative has not been without controversy.
Zomato’s Resting Point Closure: A Cause for Concern
Despite the launch of the GCC’s AC lounge, Zomato has reportedly closed its ‘resting point’ located just 250 meters away from the new facility. This closure, which has lasted for about a year, has raised several questions regarding the effectiveness and sustainability of such initiatives.
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A delivery executive in the area mentioned that the decision to close the resting point was due to the high maintenance costs. “When we asked our supervisors, they said now that the corporation’s AC lounge is operational, they decided to close the resting point because it was expensive to maintain them,” he shared with TNIE.
However, a supervisory employee at Zomato denied claims that the Anna Nagar resting point had been permanently shut down. According to him, the closure was temporary, with plans to establish a larger facility in a different location.
Expansion Plans by the Greater Chennai Corporation
Zomato currently operates two resting points within the GCC limits—Anna Nagar and Velachery. Interestingly, the GCC has now begun planning to set up another lounge in Velachery. Last week, the civic body floated tenders for the establishment of two air-conditioned lounges in Velachery and KK Nagar, with a capital expenditure of ₹50 lakh drawn from its own funds.
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GCC officials confirmed that no contributions were made by food delivery apps towards this initiative. This has led to criticism from various quarters, as activists question the use of public funds for facilities that should ideally be the responsibility of the companies themselves.
Criticism Over Public Funding and Corporate Responsibility
Labour activist Sujata Mody criticized the state government for focusing on what she called “eye-catching” initiatives rather than addressing the real issues faced by gig workers. She argued that instead of implementing and enforcing labor laws, the government is investing in these lounges, which are more appropriately the responsibility of the companies.
“Instead of focusing on implementing and enforcing labour laws for gig workers including fixed work hours, Provident Fund (PF) and Employees’ State Insurance (ESI) coverage, and preventing exploitation, the government is investing in these lounges, which should actually be the responsibility of the companies,” she told TNIE.
Mody added that the initiative not only subsidizes these companies but also shifts the responsibility of workers’ welfare away from them.
Worker Perspectives on Sustainability
Many gig workers have expressed concerns over the long-term sustainability of these lounges. A 33-year-old delivery executive who frequently uses the GCC-built lounges stated, “We are unsure how long this will be maintained properly. Will this continue if a new government comes to power? There would be more certainty if our companies are providing these facilities.”
Workers also suggested that if the GCC plans to build more lounges, they should focus on areas with a high density of restaurants, such as Nungambakkam, East Coast Road, Maduravoyal, Poonamallee, and Madhavaram.
Government and Civic Body Response
When contacted for a response, a GCC official mentioned that while the announcement for setting up these lounges came from the Labour department, the execution was handed over to GCC due to a lack of engineering expertise.
“As of now, both the establishment and maintenance are being handled through the city corporation’s funds. After observing their usage for three months, we will take a decision regarding long-term funding and involving CSR funds,” the official said.
Some anonymous sources within the GCC indicated that there had been internal discussions on whether the civic body should fund the lounges instead of relying on corporate social responsibility (CSR) funds. However, they were instructed to proceed with the project since it was announced by the government during the budget.
