Tag: Zero Hours Contracts

Clear majority of zero-hours contracts workers “stuck” in insecure jobs

NEW ANALYSIS reveals 2 in 3 zero hours contract workers have been with their current employer for over a year

  • TUC says a ban on zero-hours contracts is “long overdue”  
  • Union body says “employers need to get on board with the New Deal”- following business calls to scale back the package. 

The overwhelming majority of zero-hours contract workers are “stuck” on zero hours contracts in the long-term, the TUC has warned. 

The union body warns hundreds of thousands of workers are being trapped in low-pay and insecurity, with bad employers “parking workers on zero-hours contracts for years on end”.   

The new analysis reveals: 

  • 2 in 3 (66%) zero-hours contract workers have been with their current employer for over a year. 
  • Almost half (46%) of zero-hours contract workers have been with their current employer for over 2 years. 
  • Astonishingly, 1 in 8 (12%) zero-hours contract workers have been with their current employer for over 10 years. 

Only a minority of zero hours contract workers are on the precarious contracts as a stop gap, temporary measure. Just 7% of zero-hours workers have been with their current employer less than 3 months. 

TUC polling in 2021 showed that by far the most important reason that people take zero-hours contract work is because that is the only work available. 

Almost half (45%) of respondents said that this was the most important reason for them being on zero-hours contracts while 16% said it was the typical contract in their line of work.  

Just 9% cited work-life balance as the most important reason – and the TUC says many in this group would prefer the opportunity to work flexibly within a secure job.  

Structural racism in action 

The latest available data show there are 1.15 million people on these contracts.  

Black and minority ethnic (BME) women are  nearly three times as likely to be on zero-hours contracts as white men (6.8% compared to 2.5%),   

TUC analysis published in August revealed the number of BME workers in insecure work more than doubled from 2011 to 2022 (from 360,200 to 836,300). 

The TUC says this increase in zero-hours contracts for BME workers reflects “structural racism in the jobs market”.  

Lack of control  

The TUC says zero-hours contracts hand the employer total control over workers’ hours and earning power, meaning workers never know how much they will earn each week, with their income subject to the whims of managers.   

The union body argues that this makes it hard for workers to plan their lives, budget and look after their children. 

And it makes it harder for workers to challenge unacceptable behaviour by bosses because of concerns about whether they will be penalised by not being allocated hours in future.   

Such insecurity can be particularly challenging for those who have caring responsibilities, who are overwhelmingly women, says the TUC. 

New deal  

The TUC says a ban on zero-hours contracts is “long overdue” – and is calling for all workers to have a right to a contract that reflects their regular hours.  

Recent TUC polling revealed 6 in 10 (63%) already support a ban zero-hours contracts – including 60% of Conservative 2019 voters.  

Labour is promising a ban on zero-hours contracts as part of its New Deal for Working People – which it says it will deliver with an employment bill in its first 100 days, if elected. 

The union body says “employers need to get on board with Labour’s New Deal”- following business calls to scale back the package. 

TUC General Secretary Paul Nowak said:  “Everyone should be treated fairly at work. But too many workers – especially Black and ethnic minority women – are trapped in low-paid jobs on zero-hours contracts, with few rights and protections and no guarantee of shifts. 

“Bad employers are parking workers on zero hours contracts for years on end. It’s not right.  

“These precarious contracts hand almost total control over workers’ hours and earning power to managers – making it nigh on impossible to plan budgets and childcare.  

“Insecure work has boomed on the Conservatives’ watch over the past 14 years – with the number of workers on zero hours contracts hitting the one million mark. 

“That’s why a ban on zero hours contracts is long overdue. Working people should have a right to a contract that reflects their regular hours of work.  

“It’s time for a New Deal for Working People, like Labour is proposing – which includes a ban on zero hours contracts, ensuring workers get reasonable notice of shifts and an end to fire and rehire.” 

Commenting on reports in The Times on business calls to scale back Labour’s New Deal for Working People, alongside a poll showing the plans are “extremely popular” with the public, TUC General Secretary Paul Nowak said: “Employers need to get on board with Labour’s New Deal for Working People – and good employers will.   

“The UK’s long experiment with a low-rights, low-wage economy is a complete failure. The Tories’ lack of an economic plan for jobs, growth and living standards has cost workers and industry dear.   

“Labour’s New Deal for Working People stands in stark contrast to the Conservative’s dire record.  

“And it would be good for our economy too. Decent, secure jobs are essential to building a motivated, healthy, innovative workforce – all vital for high productivity growth.” 

TUC calls on ministers to get pay rising, as real wages fall again

Commenting on Tuesday’s labour market figures published by the ONS, which show real wages falling by 4.1 per cent (on CPI measure) as the cost of living crisis intensifies, TUC General Secretary Frances O’Grady said: “Everyone who works deserves financial security. 

“But with the Bank of England predicting the worst decline in real pay for 100 years, energy bills soaring and a recession on the horizon, millions of working families are worried they won’t be able to keep their heads above water this winter. 

“We need action from ministers now. They should cancel the increase to the energy price cap. And they must do far more to get pay rising – starting with boosting the minimum wage this autumn and giving public sector workers a decent pay rise.”  

Zero-hours contracts 

Commenting on the latest data on zero-hours contracts also published by the ONS yesterday, which show more than one million people are employed on these terms, Frances added:  ““The government promised a high skill, high wage economy. 

“But too many workers are stuck on insecure contracts that give them and their families no security. As the cost of living crisis escalates, the case for banning hated zero-hours contracts is stronger than ever.” 

The ONS figures are available at: 

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/august2022  

Latest figures published this morning show INFLATION rose to 10.1% in July.

Scottish workers and employees will now receive the same minimum level of paid annual holiday leave

For those individuals with a permanent zero hours, causal or term time only contract, the recent landmark legal judgment made by the Supreme Court represents a positive step forward in terms of their employment rights. 

According to the ruling, all employees and workers in the UK will now receive the same minimum level of paid annual holiday leave, regardless of how many hours they work. The Supreme Court was asked to rule over whether their leave entitlement should be calculated proportionally as full-time employees or whether it should be calculated by ignoring the weeks they do not work.

It ruled that the amount of annual leave for workers and employees who have a permanent contract which is in force for the full year but who are employed for some weeks of the year should not have their holiday entitlement calculated on a pro-rata basis. This is a significant development for the 78,000 Scottish residents that are currently in employment on a zero-hours contract.

Tina Chander, Head of the Employment Law Team at Wright Hassall, said: “The Supreme Court ruling once again brings the topic of zero-hours contracts to the fore, as workers and employees are now entitled to a full year’s statutory holiday entitlement which is currently 5.6 weeks per annum.

“Generally speaking, zero-hours contracts are attractive to employers, employees and workers that prefer the flexibility to choose when they work, instead of having a strict full-time regime, which may not be wanted by either party.  

“If you have a zero-hours contract, your employer does not have to give you any minimum working hours, and you do not have to accept any work offered. That being said, you can still be classed as an employee or worker.

“There are some significant distinctions between employee and worker status. For example, if you are classed as a worker then you are entitled to national minimum wage, paid holiday, rest breaks, protection from discrimination and protection from whistleblowing.

“However if you are classed as an employee, you are also afforded  the legal protection to not be  unfairly dismissed and you are entitled to statutory redundancy pay, so it is vital that Scottish employers and employees familiarise themselves with existing contracts and rights, especially in light of this recent development.”

A Tale of Two Pandemics: TUC exposes COVID Class Divide

NEW POLLING reveals the extent to which low-paid workers have borne the brunt of the pandemic

  • NEW POLLING reveals the extent to which low-paid workers have borne the brunt of the pandemic 
  • TUC analysis shows three industries furthest away from recovery are all low-paid  and have highest rates of furlough use 
  • TUC warns the end of furlough and Universal Credit cut will be a hammer blow for low-paid workers 
  • Union body says without an economic reset post-pandemic the government’s levelling up agenda will be “doomed to failure” 

The coronavirus crisis has been “a tale of two pandemics”, the TUC said today as it calls for an urgent “economic reset” to tackle the huge class divide in Britain that has been exposed by the pandemic. 

The call comes as the union body publishes new polling which shows how low-income workers have borne the brunt of the pandemic with little or no option to work from home, no or low sick pay and reduced living standards, while better-off workers have enjoyed greater flexibility with work, financial stability and increased spending power.  

Pandemic class divide 

New TUC polling, conducted by Britain Thinks, has revealed the extent of the pandemic class divide with the high-paid more financially comfortable than before, while the low-paid have been thrust into financial difficulty: 

  • Low-paid workers (those earning less than £15,000) are almost twice as likely as high-paid workers (those earning more than £50,000) to say they have cut back on spending since the pandemic began (28 per cent compared to 16 per cent) 
  • High earners are more than three times likely than low-paid workers to expect to receive a pay rise in the next 12 months (37 per cent compared to 12 per cent). 

This Covid class divide isn’t just apparent on personal finances. The polling also shows how low-paid workers are markedly more likely to get low or no sick pay compared to higher earners: 

  • Low-paid workers are four times more likely than high-paid workers to say they cannot afford to take time off work when sick (24 per cent compared to six per cent). 
  • Only a third (35 per cent) of low-paid workers say they get full pay when off sick compared to an overwhelming majority of high-paid workers (80 per cent) 

The TUC has long been calling for an increase to statutory sick pay, which stands at a derisory £96.35 a week, and from which more than two million low-paid workers – mostly women – are currently excluded because they do not earn enough to qualify.  

The union body recently criticised the government decision to “abandon” these two million workers by failing to expand eligibility of sick pay, as they had previously promised. 

This lack of decent sick pay is compounded by the fact that low-paid workers are more than three times more likely than high-paid workers to say they their job means they can only work outside the home (74 per cent compared to 20 per cent).  

This means that low-paid workers face greater risk of contracting the virus at work, and when ill, often face the impossible choice of doing the right thing but losing income or keeping full pay but potentially spreading the virus. 

Low-paid industries lag 

New TUC analysis shows that the three industries furthest away from a jobs recovery – arts and entertainment, accommodation and food and ‘other services’ – are all ‘low paid’ industries.  

These are also the three industries with the highest furlough rates according to HMRC stats, and three of the highest according to most recent ONS estimate.  

The end of furlough poses a serious threat to low-paid jobs in these industries – and combined with the “senseless” Universal Credit cut – will be a hammer blow for low-paid workers and push many further into hardship, the union body says. 

Time for an economic reset 

The TUC says its analysis and poll findings paint a picture of stark inequality in the UK, which has been further entrenched through the coronavirus crisis, and show that the country needs an urgent “economic reset” post-pandemic. 

The union body warns that without such a reset, the government’s levelling up agenda will be “doomed to failure” as ministers risk repeating the same mistakes which followed the financial crisis, allowing insecure work to spiral even further. 

To prevent unnecessary hardship in the coming months, the TUC is calling on the government to: 

  • Extend the furlough scheme for as long as is needed to protect jobs and livelihoods and put in place a permanent short-time working scheme to protect workers at times of economic change 
  • Cancel the planned £20 cut to Universal Credit 

And as part of a post-pandemic reset, the TUC says ministers must: 

  • Ban zero hours contracts 
  • Raise the minimum wage immediately to at least £10 
  • Increase statutory sick pay to a real Living Wage and make it available to all 
  • Introduce new rights for workers to bargain for better pay and conditions through their unions  

TUC General Secretary Frances O’Grady said: “Everyone deserves dignity at work and a job they can build a life on. But too many working people – often key workers – are struggling to pay the bills and put food on the table.  

“It has been a tale of two pandemics. This Covid class divide has seen low-paid workers bear the brunt of the pandemic, while the better off have enjoyed greater financial security, often getting richer. 

“This should be a wake up call – we need an economic reset. It’s time for a new age of dignity and security at work. 

“Without fundamental change, the government’s own levelling up agenda will be doomed to failure. And we risk repeating the same old mistakes of the past decade – allowing insecure work to spiral even further. 

“Ministers must start by banning zero-hours contracts, raising the minimum wage with immediate effect and increasing statutory sick pay to a real Living Wage, making it available to all.  

“And we know that the best way for workers to win better pay and conditions at work is through their union.” 

On the risk to low-paid workers this autumn, Frances said:  “The imminent end to the furlough scheme and cut to Universal Credit this autumn will be a hammer blow for low-paid workers and could plunge millions into hardship, many of whom are already teetering on the edge. 

“The government must reverse its senseless decision to cut Universal Credit and extend the furlough scheme for as long as is needed to protect jobs and livelihoods.” 

‘Economic security trap’ driving millions of Brits to work with Covid symptoms, RSA warns

Millions of British workers are putting themselves and others at risk of Covid-19 due to inadequate sick pay and pressure from their employers, new research shows.  

The RSA (royal society for arts, manufactures and commerce) warns that a growing ‘economic security trap’ — the choice workers face between protecting their income and their health — is contributing significantly to the spread of the virus. 

Polling carried out between 13 Jan and 15 Jan by Yonder (formerly Populus) of UK workers finds: 

  • around one-in-25 (4%) British workers has worked within 10 days of a positive test, rising to one-in-ten (10%) of those in insecure work such as a zero-hours contract, agency work or the gig economy 
  • 6% of British workers have worked with Covid-19 symptoms, rising to 8% of insecure workers and 13% of the self-employed 
  • 12% have been ordered into work when they could have easily and more safely worked from home 
  • only 16% think Statutory Sick Pay is sufficient to meet their needs. 

The RSA calls for an emergency package to address economic insecurity, including: 

Recent RSA research on key workers has found that many staff in key industries report struggling to take time off when unwell, including 29% of those working in social care.  

The RSA has a long-running programme of research dedicated to tackling economic insecurity in the UK. Last year the organisation published A Blueprint for Good Work, putting forward practical solutions for providing good work after the pandemic. 

Alan Lockey, head of RSA’s future work programme, said: “Our polling shows that millions feel forced to put themselves and others at risk of the virus because of insecure work, pressure from bosses, and the failings of our deeply inadequate welfare state.   

“Rishi Sunak must close this ‘economic security trap’ — the terrible trade-off many workers face between their health and putting food on the table — by allowing self-isolating workers to access the furlough scheme, and retaining the £20 per week uplift in universal credit.

“We also need to see help for the millions currently excluded, through no fault of their own – and the self-employed in particular. An ’emergency basic income’ style scheme, using the current tax infrastructure, is the best way to help reach all this group and close the gaps which we believe are helping to increase the infection rate.” 

Sorry We Missed You: screening and panel discussion

THURSDAY 21st NOVEMBER at CAMEO CINEMA

5:45 – 8.45pm

Join us for a special screening of Ken Loach’s new film Sorry We Missed You followed by a panel discussion. Continue reading Sorry We Missed You: screening and panel discussion

“Broken economy” is driving record levels of household debt, warns TUC

Low pay, insecure work and austerity are feeding a growing debt crisis, the TUC has warned.

New TUC analysis published today shows that:

  • Unsecured debt per household rose to £15,880 in the first quarter of 2019, up £1,160 on a year earlier.
  • Over half of households report having unsecured debt, most commonly in the form of credit card debt (60%), overdraft (28%), personal loans (25%) and car finance (25%).
  • Young people are disproportionately likely to be in debt. 70% of 18-34 year-olds report having a type of unsecured debt. This drops to 33% among people over 65.

The TUC believes that persistent low pay is the key driver of household debt. Real wages are still lower than they were before the 2008 crisis and working families are struggling to make ends meet without going into the red.

The latest analysis also shows that of those households with unsecured debt:

  • 1 in 5 say repayments are a “heavy burden on their finances”.
  • 1 in 7 (14%) have fallen more than two months behind on repayments in the last year.
  • 45% don’t feel that they have enough money set aside for emergencies.

TUC General Secretary Frances O’Grady said: “Our broken economy is forcing working families deep into debt.

“Low pay, insecure work and austerity have pushed millions of households to the financial cliff edge. Big corporations are raking in huge profits at working people’s expense. And successive governments have done nothing to avert the crisis.

“It’s time to reset the balance of power in our workplaces and our economy. Government must make more employers negotiate pay and conditions with unions. That will lift wages for everyone and stop working families having to rely on credit cards and overdrafts to get through the month.”

The TUC has published new proposals to ensure that workers get the chance to negotiate better pay and conditions through trade unions. These include:

– unions having access to workplaces to tell workers about the benefits of trade union membership, following the model in New Zealand

– new rights to make it easier for unions to gain the right to negotiate at workplace level

– new rights for unions to negotiate right across sectors, starting with hospitality and social care

The TUC is also calling for:

  • a £10 National Minimum Wage to be introduced as quickly as possible
  • a ban on zero-hours contracts, and a crack down on insecure work that means people don’t know how much they’ll earn from one week to the next