The problem with zero-hours contracts is not thatthey are too flexible
零時工合同的問題可不是時間太靈活
BRITAIN'S flexible labour market was a boon duringthe economic slump, helping keep joblessness down and then, when the recovery began,allowing employment to rise. Yet one of its bendier bits is causing politicians to fret. EdMiliband, the leader of the Labour Party, has promised a crackdown on “zero-hours contracts” ifhe wins the next election. The government has launched a consultation.
Zero-hours contracts allow firms to employ workers for as few or as many hours as they need,with no prior notice. In theory, at least, people can refuse work. Fully 1.4m jobs were basedon these contracts in January 2014, according to a snapsho taken by the Office for NationalStatistics. That is just 4% of the total, but the share rises to a quarter in the hospitalitybusiness.
The contracts are useful for firms with erratic patterns of demand, such as hotels andrestaurants. They have also helped firms to expand during the recovery—allowing them totest new business lines before hiring permanent staff, who would be more costly to makeredundant if things went wrong.
Flexibility suits some workers, too. According to one survey, 47% of those employed on zero-hours contracts were content to have no minimum contracted hours. Many of these workers arein full-time education. The ability to turn down work is important to students, who want torevise (or sit in the sun) at this time of year. Pensioners keen for a little extra income canoften live with the uncertainty of not having guaranteed hours.
Yet that leaves more than a quarter of workers on zero-hours contracts who say they areunhappy with their conditions. Some of this is cyclical. During recessions, a dearth ofpermanent positions forces people into jobs with no contracted hours even if they do not wantthem (the government has just said that unemployed people who refuse to accept zero-hourscontracts could be cut off from benefits). Underemployment is particularly prevalent amongthese workers, 35% of whom would like more hours compared with 12% in other jobs. As theeconomy recovers, many should be able to renegotiate their contracts or find permanent jobs.
But the recovery will not cause unwanted zero-hours contracts to disappear. Some workerswill never have much negotiating power: they are constrained by geography, familycommitments and lack of competition for their skills among a small number of big employers.Zero-hours contracts make it easier for employers to abuse their labour-market power. Someuse them to avoid statutory obligations such as sick and maternity pay. Workers are penalisedfor not being available when requested. And some contracts contain exclusivity clauses whichprevent workers from taking additional jobs. These can harm other employers as well asworkers, and actually reduce labour market flexibility. That, at least, is worth doing away with.