There is a cost of living crisis facing millions across the UK. The signs are clear to all – the weekly shop is more expensive, the energy bill never seems to stop rising and day-to-day living expenditure like travel is becoming unaffordable. And the overarching factor is that the average person’s wages are forecast to be £1,500 lower in 2015 than in 2010, a direct result of the prime minister’s failure to drive significant and much-needed economic growth.
On top of all this, there is a hidden contributor to the cost of living crisis – job insecurity.
The one-time BIS minister, Norman Lamb, previously said there was an inextricable link between job security and consumer confidence. He said that doing anything that undermined job security would ultimately undermine the economy. He was absolutely right.
Nothing gives employees such insecurity more than a zero-hours contract. They have exploded over the last few years to the extent that the Chartered Institute of Personnel Development estimates that up to one million are now in operation.
I recognise that not all zero-hours contracts are bad. Some people use them to get maximum flexibility so that they can care for relatives, supplement their income while studying, or work reduced hours in semi-retirement. Employees who want these contacts and enjoy the flexibility should be able to have them – but any reasonable person would agree that an ‘employee’ who, in good faith, pays for travel (and perhaps even childcare) to attend their workplace, should be given the hours they are promised. For many workers, these contracts create financial insecurity, and in some cases they are being used routinely when there is no clear business case, allowing unscrupulous employers to avoid their responsibilities to staff. What happens to a zero-hours worker who gets sick or pregnant?
So what have ministers done? They’ve instigated a half-hearted investigation into the use of zero-hours contracts while continuing a laser-like focus on removing people’s rights at work, an approach now synonymous with one word – Beecroft.
The secretary of state Vince Cable has admitted exploitation is taking place with these types of contracts. However, once again, he has had the leash placed around his neck by his Tory ministerial colleagues.
The only outcome is a review completely lacking in substance. Where is the public call for evidence? Where are the terms of the project? Why are only three departmental staff looking at this? Where is the debate with the public? Where is the input from business organisations? Where is the contribution from employees and trade unions?
This belies the truth that the Tory-led government is completely out of touch. As with Beecroft’s shares-for-rights scheme, the Tories think the answer to high unemployment is to make it easier to fire, rather than hire, people.
Meanwhile, Labour has been forging ahead, hosting a summit earlier this week with over 20 different organisations representing employers, employees, legal experts and workers currently on zero-hours contracts to consider what action should be taken. We have held debates in parliament and Labour MPs have produced excellent reports from analysis of these contracts in their own areas. We will follow this up with a debate in the Commons in the first week back after recess and will table a motion on the measures that need to be taken.
Tackling the problems which zero-hours contracts bring, while maintaining the flexibility that they can offer, is an important task that will benefit both employees and employers. While this Tory-led government continues to dither and delay, Labour should be proud that this issue is at the forefront of our policy thinking – with the aim that people across the UK can fulfil the promise of Britain through decent and secure jobs that reward with a good day’s pay for a good day’s work.
The cost of living crisis will not be resolved by a government that does nothing but window-dress. Despite his ‘review’, the business secretary has zero power over zero hours while he remains on the tight leash of his Tory ministerial colleagues. Meanwhile, the growing insecurity of Cameron’s Britain is left to further squeeze people’s living standards and hamper economic recovery.
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Ian Murray is MP for Edinburgh South and Labour’s shadow minister for employment relations, consumer and postal affairs. He tweets @IanMurrayMP
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