Zero-hours Contracts

Debate between Richard Bacon and Peter Bottomley

Wednesday 27th May 2015 Commons Chamber

[Mr Bacon]

I agree that the picture is not all rosy. I started with the rosy news because I wanted to soften up my hon. Friend the Minister, but there are problems. That is why I applied for this debate. I will come on to some of those problems in a moment.

Mrs King told me:

“Just because it is not for everyone doesn’t mean it is wrong for everyone and that it is somehow toxic. Implemented legally and fairly, zero-hours contracts can be a brilliant way for small charities like ours to run more effectively.”

The whole issue of zero-hours contracts, as the hon. Gentleman said, featured in the general election campaign, particularly after the right hon. Member for Doncaster North (Edward Miliband), the former leader of the Labour party, said that the Labour party, if returned, would abolish zero-hours contracts, although the manifesto does not say that. It does not call for the complete abolition of zero-hours contracts. It says:

“Labour will ban exploitative zero-hours contracts.”

The hon. Member for Streatham (Mr Umunna), who was for a few minutes a candidate to succeed as leader of the Labour party, was quite explicit when he told the Labour party conference that Labour

“will act to outlaw zero hours contracts where they exploit people.”

Meanwhile, the Conservative manifesto promised to

“take further steps to eradicate abuses of workers, such as non-payment of the Minimum Wage, exclusivity in zero-hours contracts and exploitation of migrant workers.”

I am pleased that the new Government are now in a position to follow through on these commitments.

With reference to the comments from the hon. Member for Strangford (Jim Shannon), what struck me about the issue during the general election was how frequently voters mentioned it to me, unprompted, often while talking about their grown-up children entering the workforce, which suggests that it may be a bigger issue than the statistics suggest. In one election debate in a church, a member of the audience explained how his son travelled to Norwich each day to work in a retail outlet. When he got there at 9 o’clock in the morning he was told to go and sit in a store room at the back. Later in the morning, if it got busy, he would be called out on to the shop floor, for which he would be paid. He would then be ordered back to the store room to wait for his next slice of paid work later in the day.

I do not know anybody who would defend such arrangements. They are indefensible and, by the way, they are almost certainly illegal already, because the law states that “time workers” must be paid at least the national minimum wage when they are on standby at or near the place of work and are required to be available. I do not want to get this out of proportion. It is not a universal problem. Indeed, I met a young man earlier this week who was delighted with the flexibility that his zero-hours contract gives him, but who also said to me, “What you cannot do is take someone’s time and then not pay them for it.”

[Sir Peter Bottomley (Worthing West) (Con)]

I hope my hon. Friend will agree that the minority of employers who have got into that habit should be exposed in public, should defend themselves in public and should be condemned in public.

[Mr Bacon]

I completely agree.