UK unions fear dilution of zero-hours contract reform
Trade unions in the United Kingdom have warned the government of Prime Minister Andy Burnham that Labour Party plans to limit contracts with zero guaranteed hours may fail to meet the party’s election pledge. According to The Guardian, union representatives are seeking assurances from Business Secretary Jonathan Reynolds.
Concerns were raised by proposals in a consultation document on new guaranteed-hours contracts. Workers whose existing agreements already guarantee more hours than the set threshold may not receive the right to request a contract reflecting the time they actually work. Such a threshold could range from 8 to 48 hours.
Usdaw General Secretary Joanne Thomas said the right to a contract guaranteeing regularly worked hours should apply to all workers, including those working full time. GMB representative Ross Golden also said that without a substantial revision, the policy risks failing to comply with the provisions of Labour’s election manifesto.
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The Unite union separately criticised the proposed requirement concerning the regularity of work. In the union’s view, it could deprive a significant number of people of the opportunity to use the new right. The Trades Union Congress of the United Kingdom called business groups’ statements about possible costs scaremongering.
Government estimates published last week indicate that the most extensive version of the reform could cost companies up to £2.9 billion a year. The British Chambers of Commerce called this an additional blow for businesses facing difficulties. Trades Union Congress Deputy General Secretary Kate Bell noted that 40% of the upper cost estimate is compensation employers would have to pay for cancelling work shifts at short notice. According to the same document, irregular and unpredictable shifts cost every third worker on a zero-hours contract about £3,000 a year.
The changes are provided for by the Employment Rights Act, which has already been passed, but the rules on zero-hours contracts are planned to be introduced next year. The government said that no final decisions have yet been made and consultations with businesses and trade unions are ongoing.
