Labour to ban Scots zero-hours contracts, maybe, as they climb to levels already in England & Wales but offer no rebuke to Mrs Sarwar as Scotland leads on Real Living Wage

A zero hours protest.

From the Herald, today:

The Labour Party which is the favourite to form the next UK government has pledged to ban ‘exploitative’ zero hours contracts as their use hit record levels in Scotland, the Herald on Sunday can reveal.

Official figures reveal that the average number of Scots on zero-hours contracts has soared to an average of 100,000 in the past year – a 42% rise on 2019, the year before the pandemic.

According to Statista, there are around 1.2 million zero hours workers across the UK. The Scottish rate is now exactly the same as in the rest of the UK, after 14 years of Tory rule which Labour have committed to following.

Will Labour really ban zero hours contracts? What do you think?

Labour is facing criticism over plans for a loophole that would allow employees to work under zero-hours contracts, despite the party having pledged to ban them entirely. Keir Starmer’s party is preparing to announce details of its promise to overhaul workers’ rights if it gets into power – a centrepiece of its early plans for government, but subject to fierce lobbying from businesses.

Labour has repeatedly promised to ban zero-hours contracts, under which an employer is not obliged to provide any minimum number of working hours. But as part of its revised plans, although employers would be required to offer a contract based on regular hours worked, workers could opt to stay on zero hours. The move has triggered fears of a power imbalance that employers could exploit to pressure workers into accepting insecurity around pay and working hours. The IWGB union, which represents gig economy workers, said they feared anything less than an outright ban on the practice would leave scope for exploitation.

“Workers are often forced to accept poor conditions and precarious contracts across sectors due to desperation and extreme power imbalances between employers and employees in the UK,” the union’s general secretary, Henry Chango Lopez, said. “This power imbalance would persist under these new proposals.”

https://www.theguardian.com/politics/2024/may/01/labours-new-deal-for-workers-will-not-fully-ban-zero-hours-contracts

What about that other measure of progressive politics – the real living wage?

A record proportion of employees in Scotland are being paid the real Living Wage (rLW) or more, new figures reveal.

The Office for National Statistics’ Annual Survey of Hours and Earnings shows 91% of employees aged 18 and over earned at least the rLW in 2022, an increase from 85.5% in 2021 and the highest proportion since the rLW series began in 2012.

In comparison, 87.5% of employees aged 18 and over in England are paid the rLW or more, 88.2% in Wales and 85.4% in Northern Ireland.

The ONS survey also confirms that the Gender Pay Gap is lower in Scotland than across the UK as a whole. For full-time employees the gap is 3.7% compared with the UK figure of  8.3%. https://www.gov.scot/news/scotland-leads-on-the-real-living-wage/

Scottish Labour?

Scottish Labour leader Anas Sarwar has confirmed that not all workers at his family’s wholesale business are currently paid the real living wage. His party wants to introduce new minimum rates of pay linked to the cost of living as part of its “new deal for workers”.

Mr Sarwar….told BBC Scotland’s The Sunday Show it would have to start paying Labour’s “genuine living wage” if his party wins the general election.

Other parties accused him of “hypocrisy” over the policy. Labour has not set out precisely what rate it would introduce but it backs a “minimum wage taking account of the cost of living”.

Mr Sarwar waived his right to benefit from his family’s firm in 2017 after becoming an MSP. He confirmed not all staff at the firm were paid the Living Wage Foundation’s real living wage rate, but said that they would receive a cost of living-linked rate of pay if Sir Keir Starmer becomes prime minister. https://www.bbc.co.uk/news/articles/cyxx8d0l948o#:~:text=The%20real%20living%20wage%20hourly,of%20their%201997%20election%20manifesto.

7 thoughts on “Labour to ban Scots zero-hours contracts, maybe, as they climb to levels already in England & Wales but offer no rebuke to Mrs Sarwar as Scotland leads on Real Living Wage

  1. That ‘would have to’ speaks volumes. There is real living wage at present, which as far as I know, is statutory. Sarwar has admitted that ‘some of his family company employees do not receive it.

    However, if Labour enacts stricter legislation, then, very reasonably (?????) he has said the company ‘would have to’ pay the real living wage.

    What is stopping the company from paying all employees the real living wage now?

    I think the answer seems clear – companies have a statutory duty to maximise returns for shareholders. So, paying the underpaid employees the real living wage would reduce profits and so the company would be breaking the law. Clearly they are choosy about which laws they comply with.

    He points out that he personally has received no income from the company since he became an MSP around 7 years ago. However, he is still a shareholder and his dividends go somewhere ….. to a blind trust? to a family trust? to his wife and children.

    Alasdair Macdonald.

    Liked by 2 people

  2. Sarwar ”does not benefit” from his family’s business which does not pay everyone the living Wage . Only his wife and kids benefit – so that’s OK !

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  3. Employment law is reserved to westminster and any implied criticism of the Scottish Government is to say the least dishonest, as indeed are the protests outside the Scottish Parliament over oil and gas production which is of course is reserved to westminster. The RWL is entirely voluntary and is a commendable aspiration of the SG and the Scottish Parliament, that so many employers in Scotland have signed up to this scheme speaks volumes.

    Golfnut.

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  4. They will not be able to abolish zero hour contracts. Or put people out of work who cannot work set hours. Nursings banks, relief banks, students and contractors. They work zero hours or they cannot work. One parents families and carers need flexi hours.

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    1. I agree. There are types of roles and posts which do require zero hours contracts such as relief/bank staff within the care sector (like Nursing banks) who are needed to cover unforeseen staff absences and there are also some people who want zero-hours contracts. For some reason any discussion about zero hours contracts in recent years doesn’t appear to have been able to deal with a situation (which just like the rest of life) isn’t black and white. The media at times seems to struggle with any degree of complexity in a subject. You’d have thought that with the advent of 24 hour news nuances could be handled but apparently not.

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  5. I wonder how many journalists( no laughing, please) media staff( bbc etc) political/ legal/ corporate interns are on zero your contracts?

    Golfnut

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