Platform economy: Danish government takes up union demands

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A new framework agreement on the platform economy in Denmark will establish a ‘sharing economy council’, where the social partners will work with government and experts to define fair employment conditions in the sector.

LO-Denmark has welcomed the deal, involving the Danish government and three political parties, which builds on earlier trade union proposals. It means digital platforms will have to report automatically to Danish tax authorities. The government will invest 10 million DKK in tax control measures targeting platform companies.

“The right steps are now being taken,” said LO Vice-President, Nanna Højlund. “It is really positive that LO’s proposal has attracted attention. New technology and new business models are welcome in Denmark, but there must be fair competition. Automatic reporting to the tax authorities will not only ensure that platforms and their users contribute to society but will actually make reporting easier.

“But I still find it odd that people insist on calling it the ‘sharing’ economy when turning a profit is the main aim of most platforms,” added Højlund, who prefers the term ‘platform economy’.

“The agreement is a good first step. However, there are still pending issues when it comes to employers’ liability towards the persons working on the platform. Modern business models must take on responsibility for their employees.”

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