Unions warn Labour's zero-hours contract plan may fall short of manifesto promise
British trade unions are warning business secretary Jonathan Reynolds that the government's plan to curb zero-hours contracts risks failing to deliver on Labour's manifesto pledge, as a public consultation on the policy closes next week.
Trade unions have raised concerns with business and trade secretary Jonathan Reynolds that the Labour government's approach to reducing zero-hours contracts may not live up to commitments made in the party's election manifesto.
Union leaders are seeking reassurances from Reynolds, while the Trades Union Congress (TUC) has dismissed some business groups' reactions to the policy as "scaremongering."
Concerns over exemptions
Unions were alarmed by limits set out in a government consultation document determining who would qualify for new guaranteed-hours contracts. Joanne Thomas, general secretary of shop workers' union Usdaw, said the right to a contract guaranteeing normal working hours is a matter of basic fairness and must apply to everyone, including full-time workers, without loopholes.
GMB's head of policy and research, Ross Holden, warned that without a significant rethink, the policy risks not matching manifesto commitments, and questioned whether union concerns are being given enough weight in shaping the policy. Separately, Unite criticized a proposed "regularity requirement," arguing it could exclude a large share of workers from qualifying.
Costs and background
Eliminating zero-hours contracts is a central goal of Labour's Employment Rights Act, which has already become law, though the related changes are not due to take effect until next year. Government estimates show the most far-reaching version of the policy could cost businesses up to £2.9bn annually, a figure business groups have called a severe blow to struggling firms.
TUC assistant general secretary Kate Bell said much of that cost estimate assumes employers make no changes to their practices, and noted that unpredictable shifts already cost about a third of zero-hours workers roughly £3,000 a year. A government spokesperson said it remains committed to ending "exploitative" zero-hours contracts, stressing that no final decisions have been made and consultations with business and unions are ongoing.
