Zero-hours Contracts — House of Commons, 2015-05-27
Topic: Labor
Richard Michael Bacon (Conservative, Centre-right): I am pleased to have the opportunity to introduce the first Adjournment debate of the new Parliament. It was a pleasure to follow the hon. Member for Swansea West (Geraint Davies). I would love to tell him that the Scottish National party Members were sitting in their places because of the rumour that he was the most exciting speaker in western Europe, and that the right hon. Member for Gordon (Alex Salmond) was there because he wanted to hear every word the hon. Gentleman had to say, but in fact I know that the right hon. Gentleman is sitting there with some of his colleagues because they want to hear what we on the Government Benches have to say about zero-hours contracts. It may seem unusual for a Conservative Member to be raising this subject, which was controversial at some point during the general election, but at a time when the Labour party is unable to focus on any subject at all, as evidenced by the number of Labour Members now in the Chamber, it is left to the governing party, the Conservative party, and what I think they would probably call the real Opposition to focus on the issues that are important to the nation, and zero-hours contracts is one of those issues The expression "zero-hours contracts" is a colloquial term for a contract of service under which a worker is not guaranteed work and is paid only for work carried out. It is fair to say that such contracts have attracted both criticism and praise. Employer organisations tend to stress the role that zero-hours contracts can play in helping businesses to meet fluctuating demand, and they argue that such contracts play a key role in keeping people in jobs. Trade union campaigners and others emphasise how the financial insecurity of those people who are on zero-hours contracts limits their ability to rent property or to access loans or mortgages, so that it becomes more difficult for them to provide for their families, and that the general uncertainty facing workers on zero-hours contracts is compounded because such people are not defined as employees, which means that they do not qualify for most employment rights The Office for National Statistics has examined the matter to estimate the number of people who have zero-hours contracts, and it is fair to say that there is a little blurring at the edges about the accurate numbers, depending on how they are counted. The ONS has collected statistics based on the labour force survey, which asks workers rather than employers about their employment arrangements, and this suggests that there may be about 697,000 people on zero-hours contracts. A survey by the Chartered Institute of Personnel and Development produced a rather higher number of about 1 million, but the ONS thinks that that may overstate the sampling of large employers. None the less, there is a small but significant proportion of the total workforce of 31 million people—perhaps between 2.2% and 3.2%—who are on zero-hours contracts The workplace employment relations survey estimated that the proportion of workplaces with at least some workers on zero-hours contracts has doubled from 4% in 2004 to 8% in 2011, and what is particularly significant is the concentration of workers on zero-hours contracts in certain sectors. The Financial Times reported in April 2013 that there were more than 100,000 zero-hours contracts in use across NHS hospitals, the number having risen by 24% over two years. In the hotel and catering sector, some 53% of employers make at least some use of these contracts, and it has been estimated that some 61% of workers in the domiciliary care sector are on zero-hours contracts A social entrepreneur, Mrs Sheila King, in my South Norfolk constituency has told me of the great value of zero-hours contracts for small charities. Mrs King conceived and developed the Pennoyer centre in Pulham St Mary in my constituency. The centre, which is run as a local village charity, is in a building which is part derelict Victorian primary school and part 14th-century medieval guild chapel, and which is now, with the help of grants Mrs King secured from the Heritage Lottery Fund and other grant-making bodies, a multi-purpose village centre. It serves as a conference centre, an IT training centre, a café, a restaurant, a village hall and, indeed, as a polling station in the recent general election, which I say with particular affection because it was where I cast my own vote Of the 13 people who work at the centre, four are on zero-hours contracts and they earn holiday pay for every hour worked. These workers include some women over the age of 60 who are happy to have a few hours’ work here and there, and some sixth formers working for their A-levels who at certain times, when they are studying, want to be able to say no to any work at all, whereas at other times they will tell the centre that they would like as many hours as possible. Mrs King told me that it would be difficult to run the centre without the flexibility offered by zero-hours contracts, which she said were "flexible on both sides".