By Richard Johnstone in Glasgow | 16 September 2013
Business Secretary Vince Cable today pledged to tackle the ‘abuses’ of zero-hours contracts, after admitting that their use is much more widespread than government thought.
Speaking at the Liberal Democrat party conference in Glasgow, Cable said that an ongoing government consultation on the use of the contracts had examined both the benefits and disadvantages of the practice, which do not guarantee workers any work each week.
He said discussions with businesses, trade unions and other groups had revealed ‘they are much more widely used than we had previously thought’.
The review has highlighted key areas of concern, where the government will now look to take further action, Cable said. These include demands that some employers make asking people on zero-hours contracts to work only for them, as well as uncertainty of earnings, and a lack of transparency over what is defined a ‘zero-hour’ arrangement.
Cable said that ‘it is also clear that there are abuses in the system, especially around the issue of exclusivity which some employers are demanding from workers on these contracts’.
This was something that the government would now look to change. ‘We will proceed to issue a consultation, which will explore how to tackle any abuses in the system, particularly around exclusivity.
‘I am determined to make sure people are paid and treated fairly, while helping to keep people employed in these delicate economic times.’
Cable also told delegates that he has asked the Low Pay Commission, the body that advises government on the National Minimum Wage, to consider increasing the minimum wage without hitting jobs.
The NMW is ‘a vital safety net in protecting the low paid’, Cable said. As signs of an economic recovery start to emerge, it should help ensure the ‘benefits of growth are shared fairly across the board’, he added.
'The Low Pay Commission every year carries out a huge amount of valuable, detailed work looking at labour conditions across the economy. Today, in addition to their ongoing annual remit, I am asking them to extend this expertise to help the government and business understand how we can deal with the issue of low wages in the economy.
‘In particular I have asked them to look at what economic conditions would be needed to allow the National Minimum Wage to rise by more than current conditions allow.'
It is expected that the LPC will report back to government in spring 2014.
