Zero Hour Contracts

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Conference
2014 Water, Environment & Transport Service Group
Date
6 February 2014
Decision
Carried

This Conference notes the insidious spread of zero hour contracts and the impact this is having of the employment, terms and conditions of UNISON members employed in the transport industry.

Conference notes that recent media focus has brought the issue of zero hour contracts to the public attention. Recent CIPD research suggests that zero hour contracts are more commonly used in the public rather than in the private sector, with recent figures showing that more than one million British workers could currently be employed on zero hour contracts.

Conference, whatever the hard numbers tell us, zero hour contracts have come to symbolise a wider concern that the labour market is moving towards less secure and more exploitative forms of employment at a time when in many areas jobs are scarce and people have little choice taking whatever work is available.

Conference also welcomes the report ‘Flexibility or Insecurity’ produced by the Work Foundation, exploring the rise in zero hour contracts.

Zero hour contracts, give flexibility to a few, but the balance of power favours the employer and it makes it harder for workers to complain.

Zero hour contracts are where an individual is not guaranteed work and is paid only for the actual hours of work offered by the employer and carried out. There are three primary reasons why zero hour contracts may be used:

i) Demands of the job – where work is erratic and highly unpredictable, varying from day to day and week to week.

ii) Evading employment rights – employers may designate individuals as workers rather than employees. Workers are not entitled to protection against unfair dismissal, maternity rights, redundancy rights and rights under TUPE.

iii) Meeting individual flexibility – for some employees zero hour contracts may be attractive in that they choose when and where they work, or it is a supplement to a main job, or potential insecurity of income if not of major concern – eg a retired person who wants to do some occasional work.

Not knowing from one week to the next what money is coming in to buy food and pay the bills is extremely nerve-wracking. Having your hours varied at short notice is also stressful and makes planning childcare arrangements and budgeting hard.

In the transport sector we have seen a rise in the use of zero hour contacts, mainly with data collectors, but more recently with office staff based within the smart ticketing team, as employers are trying to find cost effective ways of meeting short term staffing needs.

Conference zero hour contracts may be good for the employer because they provide ultimate flexibility, allowing them to hire and let go of staff at will, but for workers they provide zero security – no guaranteed hours, no benefits and jobs which can be cancelled at the drop of a hat. Yes, for many zero hour contracts are a good means to employment that offer flexibility to the employee which can be particularly helpful to students, parents and even older people topping up their pension, but for many they provide no security at all. These people find it difficult to get mortgages, and or apply for credit as well as trying to make ends meet.

Conference welcomes the Labour Leader Ed Miliband’s call for the exploitation of zero hour contracts to be stopped. Conference further welcomes the announcement from Vince Cable that companies could face a code of conduct to prevent them from exploiting workers through zero hour contracts.

Conference calls on the WET Service Group Executive to work with the NEC and other service groups with a view to stopping the exploitation of zero hour contracts.