For trade unions, it is important to understand the economy specific to the group of workers in mind. This requires listening to the workers themselves and sustained participatory action research. Participatory action research will help you create worker research teams to do one-to-one, in-person surveys of workers in informal and formal work and analyse the results.
The FES Tool Box contains additional resources on Participatory Action Research.
Participatory action research is critical to the development of organisation and representation of all workers. With participatory action research, workers’ organisations and unions have democratic oversight from the outset, workers are centrally involved in the formulation of research questions, directly involved in surveys and other field research activities, and have ownership over the conclusions. This is partly out of democratic principle, but also because of recognition that the workers themselves are the most important source of information and knowledge of their own industry. There is a growing community of academic scholars and research organisations – such as Women in Informal Employment Globalising and Organising (WIEGO) - sympathetic to the trade union movement, who may be willing to work alongside unions in researching informal economies. https://www.wiego.org/about-us/what-we-do
In the informal economy, workplaces are scattered and individualised – it may be the home, the employers’ home, the street, the road, or a dump. Other workplaces are mobile, seasonal, or insecure. To the untrained eye, informal workplaces such as markets, bus terminals and waste dumps can appear to be completely chaotic, but generally they are highly organised with multiple intersecting economies, complex organic systems of informal transactions, hierarchies, governance, and employment relationships.
The informal economy frequently involves an intricate web of employment and power relationships. These are very rarely bound by a formal contract, but many workers have some form of employer, whether market stallholder, vehicle-owner, waste-dealer, outsourcing agent or sub-contractor. This is essential to understand, as these employment relationships are fundamental to livelihoods, may form the basis of collective bargaining, and are often also part of the self-organisation of informal economy workers.
It is important to understand the detail of livelihoods. Making a living in the informal economy in a specific industry can be complex. The amount of money a worker can take home to her or his family is the result of daily transactions with informal (and formal) employers, customers, suppliers, formal or informal taxation, casual employees, officials demanding bribes, criminal gangs and other essential expenses. It is sometimes difficult to get a full picture, as workers may be reluctant to reveal the detail of their own micro-economy, which is essential to build sufficient trust and confidence, and may take time and patience, with the research being led by workers themselves.
Workers in the informal economy may struggle to be recognised as workers. Street vendors or waste-pickers may be labelled as business people/entrepreneurs, domestic workers and home-based workers, but are too often seen as simply ‘doing what women do’, playing into gender stereotypes. Sometimes informal workers do not even recognise themselves as workers. In many cases the lines may be blurred, with unpaid family members working.
Clearly, most informal economy workers do not have an identifiable employer, or they are in some form of disguised employment relationship. A matatu (minibus) driver in Kenya, for example, is not a formal employee of the matatu owner and may even regard himself (and it is almost certainly a ‘him’) as self-employed, but is clearly dependant on the vehicle owner for his livelihood, conditions at work and security of employment. Similarly, a waste recycler in India may be technically self-employed (or operating as part of a collective), but is dependent on the wholesale recycled materials dealer to set prices and determine livelihoods. In the new digital ride-hailing industries (Uber, Taxify, etc.), the employers refuse to accept responsibility for their ‘employees’, hiding behind the fiction that they are only providing the app, and that the riders and drivers are all self-employed.