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Coalition 'out of ideas' to end zero hours contracts

Cable rules out an outright ban on zero-hours contracts

The government has run out of ideas and failed to tackle the scourge of zero-hours contracts, unions and the Labour Party claimed yesterday.

They sounded their warning as Business Secretary Vince Cable prepared to launch a consultation on the controversial contracts but ruled out an outright ban, claiming they offer "welcome flexibility" for some workers.

Mr Cable insisted the contracts had a place in the labour market even though there had been evidence of abuse.

The 12-week consultation will include the possibility of banning "exclusivity contracts" which offer no guarantee of work and stop people working for another employer.

Mr Cable said: "A growing number of employers and individuals today are using zero-hours contracts. While for many people they offer a welcome flexibility to accommodate childcare or top up monthly earnings, for others it is clear that there has been evidence of abuse around this type of employment which can offer limited employment rights and job security.

"We believe they have a place in today's labour market and are not proposing to ban them outright, but we also want to make sure that people are getting a fair deal.

While business groups welcomed the announcement and the decision against a ban, union leaders said it showed the coalition was "desperately short on solutions."

TUC general secretary Frances O'Grady said: "The growth of zero-hours contracts is one of the reasons why so many hard-working people are fearful for their jobs and struggling to make ends meet, in spite of the recovery.

"But while the government has identified some of the problems faced by those with zero job security it's desperately short on solutions to curb the use of these contracts."

GMB national officer Mick Rix added: "This snail's pace reaction to what is clearly an urgent problem will not bring any Christmas cheer to exploited low-paid workers on zero-hours contracts and similar contracts offering employment insecurity.

"It is regrettable that the government is not outlawing the use of zero-hours contracts even though it admits there is abuse."

Shadow business secretary Chuka Umunna said: "Ministers have failed to act on this worrying rise in zero-hours contracts.

"Having spent months saying they will investigate, all that has emerged is a consultation on proposals which do not go far enough to tackle exploitation and bad practice."

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