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 http://www.resolutionfoundation.org/publications/matter-time-rise-zero-hours-contracts/
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  • 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
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