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| A zero-hour contract is not 'flexibility' but exploitation – and it's rising | |
| (35 minutes later) | |
| The phrase “zero-hour contract” was virtually unheard of in Britain a decade ago. That’s not surprising, since in the years leading up to the start of the financial crisis in 2007 few people were employed on one. | The phrase “zero-hour contract” was virtually unheard of in Britain a decade ago. That’s not surprising, since in the years leading up to the start of the financial crisis in 2007 few people were employed on one. |
| Today, after an eightfold increase in the past 10 years, everybody knows what a zero-hour contract is and what it represents. It is a symbol of an increasingly insecure labour market in which the balance of power is tilted decisively in favour of employers. | |
| The fact that zero-hour contracts have their own acronym (ZHC) shows how widespread they have become. In 2005, there were 100,000 workers on contracts that did not guarantee a minimum number of hours. The latest estimates from the Office for National Statistics show that by the end of 2015 there were 801,000. | The fact that zero-hour contracts have their own acronym (ZHC) shows how widespread they have become. In 2005, there were 100,000 workers on contracts that did not guarantee a minimum number of hours. The latest estimates from the Office for National Statistics show that by the end of 2015 there were 801,000. |
| Related: What are zero-hours contracts? You asked Google – here’s the answer | Dawn Foster | Related: What are zero-hours contracts? You asked Google – here’s the answer | Dawn Foster |
| Somewhat surprisingly, the big increase in ZHCs was not during the Great Recession itself, when the number of people on them doubled to 200,000. Instead, it has been the period when the economy has been recovering from its longest and deepest slump since the second world war that their use has rocketed. | Somewhat surprisingly, the big increase in ZHCs was not during the Great Recession itself, when the number of people on them doubled to 200,000. Instead, it has been the period when the economy has been recovering from its longest and deepest slump since the second world war that their use has rocketed. |
| Initially, the argument was that ZHCs were a response to the sluggish and uneven nature of Britain’s recovery, and they would become less prevalent as unemployment decreases. This argument looks less tenable now that the jobless rate is back to its pre-recession level. In the past year alone, the number of zero-hour contract workers has increased by 15%. | Initially, the argument was that ZHCs were a response to the sluggish and uneven nature of Britain’s recovery, and they would become less prevalent as unemployment decreases. This argument looks less tenable now that the jobless rate is back to its pre-recession level. In the past year alone, the number of zero-hour contract workers has increased by 15%. |
| Let’s be clear. Some workers like ZHCs because they provide flexibility. Tens of thousands have been with their current employers for 10 years or more. Similarly, many people at university find that a ZHC dovetails well with their studies. Even after the sharp rise since 2012, people on zero-hour contracts account for just 2.5% of those in employment. | Let’s be clear. Some workers like ZHCs because they provide flexibility. Tens of thousands have been with their current employers for 10 years or more. Similarly, many people at university find that a ZHC dovetails well with their studies. Even after the sharp rise since 2012, people on zero-hour contracts account for just 2.5% of those in employment. |
| That said, this is not just a question of an undergraduate taking a couple of hours’ break from their essay on Hamlet to pull pints down the local pub. While 10% of workers overall say they would like to work longer hours, the figure rises to 37% for those on ZHCs. | |
| TUC research has shown that average weekly earnings for zero-hour workers are £188 compared to £479 for permanent staff, and that two-fifths earn less than the £111 a week needed to qualify for statutory sick pay. This is not “flexibility”: it is exploitation. And it is on the increase. | TUC research has shown that average weekly earnings for zero-hour workers are £188 compared to £479 for permanent staff, and that two-fifths earn less than the £111 a week needed to qualify for statutory sick pay. This is not “flexibility”: it is exploitation. And it is on the increase. |