A matter of time the rise of zero hours contracts
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A matter of time the rise of zero hours contracts

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Slides presented by Matthew Pennycook at the Resolution Foundation event A Matter of Time: The rise of zero-hours contracts. For more information see the full report available at ...

Slides presented by Matthew Pennycook at the Resolution Foundation event A Matter of Time: The rise of zero-hours contracts. For more information see the full report available at http://www.resolutionfoundation.org/publications/matter-time-rise-zero-hours-contracts/

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  • Thanks to panel. Set out order. ZHC a type of employment contract under which an employer….Similar to small hours contracts and a number of similarities with agency tempingPrior to intro of WTR and NMWR associated with practice of “clocking-off” staff on site. While most exploitative practices curtailed ZHC are still precarious for many both in terms of uncertainty and because of the sharp practices still linked to them including the use of these contracts as a management tool to reward or punish.
  • ZHC are nothing new. Been around for some time.What’s novel is there growth and spread. Official statistics show a clear upward trend. Reasons to believe these represent a significant under-estimate. Other sector-based studies suggest higher rates. For example 150,000 domiciliary care workers are on ZHC
  • Now used by 8% of workplaces and across a range of sectors. Our analysis suggests 20% of those on ZHC work in the health and social work, 19% in hospitality where these contracts are overepresneted but we’ve also now see ZHC in sectors where they traditionally have been less prevalent e.g. 11% in retail
  • Fewer hours on average and less likely to be happy with this situation While we cannot say with any certainty due to data limitations the rise of ZHC on this basis may partly explain the ability of the UK labour market in recent years to combine high employment levels with an unprecedented squeeze on real wages and rising rates of under-employment
  • Increase a result of economic downturn (and question of their permanency as a form of employment).According to a number of employers and employer reps the 2010 Agency Work Regulations (entitling agency workers to the same pay, terms and conditions as their full-time equivalents after 12 weeks) may also have contributed to their rise as employers try to get round the burden of these regulations. There is anecdotal evidence to this effect towards direct hiring but recent years have also seen an increase in agency workers themselves so ZHC have not dampened demand for agency workers. More likely we are seeing a general rise in vulnerable employment.

Transcript

  • 1. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………A Matter of TimeThe rise of zero-hours contractsJune 2013……………………………………………………………………………………………..#zerohours
  • 2. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………A Matter of Time……………………………………………………………………………………………………..• What are zero-hours contracts?• The growth and spread of zero-hours contracts• Implications for the UK labour market and the wider economy• Why are growing numbers of employers using zero-hourscontracts?• The impact of increased zero-hours contract use on thosewho work on them and the services they provide#zerohours
  • 3. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………The growth of zero-hours contracts……………………………………………………………………………………………………..Trends in zero-hours contract useNumber of people on zero-hours contract, 2006-2012#zerohours
  • 4. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………The spread of zero-hours contracts……………………………………………………………………………………………………..The distribution of those working on zero-hours contractsDistribution of employees by zero-hours contract status by industry, 2012#zerohours
  • 5. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………Implications for the UK labour market and economy……………………………………………………………………………………………………..Those employed on zero-hours contracts:• Work fewer hours on average (21 hours per week) than those whoare not (32 hours per week) and are more likely to be looking for anew or additional job• Receive lower gross weekly pay (an average of £236 per week)compared to those who are not (£482 per week)• Have a lower gross hourly wage (£9) than those who are not (£15)• Are more at risk of being low paid (half of those on zero-hourscontracts are low paid compared to 23% of those who are not)#zerohours
  • 6. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………Why are more employers using zero-hours contracts?……………………………………………………………………………………………………..Zero-hours contracts allow employers to:• Maximise the flexibility of their workforce so that itcan more easily adjust to variations in demand• More successfully manage risk• Reduce the costs associated with recruiting andtraining staff• Avoid particular employment obligations#zerohours
  • 7. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………The impact of zero-hours contracts on employees andworkplaces……………………………………………………………………………………………………..“Many of my colleagues who are raising families havegot into serious debt from working on zero-hourscontract because they cannot be sure what they’ll getin each month. Those who’ve avoided debt have doneso by living with parents, drawing on savings, havingredundancy pay from previous jobs to fall back on”.- FE lecturer, Bradford#zerohours
  • 8. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………The impact of zero-hours contracts on employees andworkplaces……………………………………………………………………………………………………..“When I started out at my current job I did nine weekswithout a single day off and I was regularly workinganything up to 55-60 hours a week. Since putting myfoot down and refusing to work every other weekend– I still do 12 days on with 2 off – my hours have driedup”.- Domiciliary care worker, Newcastle#zerohours
  • 9. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………The impact of zero-hours contracts on employees andworkplaces……………………………………………………………………………………………………..“I have no faith or commitment to the company sincethey put us all on zero-hours. All the girls who hadtheir contracts changed feel the same. And it definitelyhas an impact on the care we provide…now everyoneis worried and looking for other jobs and that rubs offon patients”.- Day Services Support Worker, Kendal#zerohours
  • 10. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………Where next?……………………………………………………………………………………………………..Government review of zero-hours to conclude in theautumn:“For some these can be the right sort of employmentcontract, giving workers a choice of working patterns.However, there has been anecdotal evidence of abuseby certain employers, including in the public sector, ofsome vulnerable workers at the margins of the labourmarket.”- Vince Cable MP, Secretary of State for Business,Innovation and Skills#zerohours
  • 11. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………A Matter of TimeThe rise of zero-hours contractsJune 2013……………………………………………………………………………………………..#zerohours