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Telangana Gig Unions Demand Fair Wages and Algorithmic Transparency in New Rules

The Telangana Gig and Platform Workers Union is pushing for stricter oversight of app-based aggregators to prevent arbitrary job losses and financial exploitation. Their formal recommendations aim to secure minimum earnings and social safety nets for thousands of drivers.

By Project Chintan Newsroom
28 July 2026 · 2 min read
Telangana Gig Unions Demand Fair Wages and Algorithmic Transparency in New Rules

Push for Fair Compensation and Commission Caps

Labor organizations in Telangana are advocating for a fundamental shift in how app-based ride-hailing services compensate their drivers. As the state finalizes the Telangana Motor Vehicles Aggregator Rules, 2026, the Telangana Gig and Platform Workers Union (TGPWU) has presented a series of demands to the Transport Department. Central to these proposals is the establishment of a fair minimum base fare. The union argues that per-kilometer and per-minute charges must undergo regular revisions, conducted in direct consultation with registered driver unions, to ensure wages keep pace with inflation.

Financial transparency remains a primary concern. Shaik Salauddin, a representative of the TGPWU, highlights the need for a transparent ceiling on the commissions aggregators can deduct. The union's draft proposes that drivers should retain at least 60% of the total fare after costs. Additionally, the recommendations call for strict regulation of surge pricing and mandatory disclosure of how fare calculations and driver incentives are determined by company algorithms.

Security Against Arbitrary Deactivations

The threat of sudden income loss due to account blocking is a recurring issue for gig workers. To combat this, the union is demanding an end to "arbitrary" profile deactivations. The proposed safeguards include:

  • A mandate that no ID be suspended or blocked without advance notice and a written explanation.
  • The establishment of an independent appellate mechanism for drivers to contest terminations.
  • Total clarity on the specific policies and penalties that govern account status.
  • Standardized written contracts available in regional languages, specifically Telugu and Urdu.

Broadening Social Safety Nets and Infrastructure

The submission emphasizes that drivers require more than just higher wages; they need comprehensive social protections. The TGPWU recommendations specify a minimum health insurance cover of ₹5 lakh and term insurance valued at ₹10 lakh for every driver on these platforms. Beyond insurance, the workers are seeking access to pension schemes, maternity benefits, and welfare board initiatives.

To improve daily operating conditions, the union is calling for the construction of rest areas equipped with sanitation facilities. They also seek medical support and emergency assistance protocols. Under the proposed framework, grievances would be handled by an independent authority within a fixed timeframe, ensuring that drivers have a formal channel for dispute resolution that does not rely solely on the aggregator's internal processes.

Source: The Hindu — National

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