Unions worry Labour’s plan for zero-hours contracts may break manifesto pledge

Trades unions have expressed concerns that Labour’s policy on eliminating zero-hours contracts could contradict the party’s own manifesto pledge. Union leaders are seeking reassurances from the business secretary, Jonathan Reynolds, amid accusations of "scaremongering" from business groups. Joanne Thomas, general secretary of shop workers’ union Usdaw, emphasized that the right to a guaranteed hours contract is crucial for basic fairness and security.

She stressed that the policy must apply to all workers, including full-time employees, and warned against loopholes that could render the policy meaningless. Ross Holden, head of policy and research at the GMB union, expressed concerns about a "major rethink" needed to ensure the policy aligns with manifesto commitments. Unite also raised concerns about a "regularity requirement" that could exclude a significant number of workers from qualifying for the new right.

The government’s zero-hours contract changes are set to implement next year, but many details remain unresolved. A consultation document, published during Keir Starmer’s tenure, proposed an upper hours threshold, excluding workers whose existing contracts already guarantee them more hours. Business groups, including the British Chambers of Commerce, criticized the potential financial burden for companies, estimating costs up to £2.9bn annually.

Kate Bell, assistant general secretary of the TUC, highlighted that 40% of the cost estimate is due to compensation for cancelling workers’ shifts at short notice, assuming no behavioral changes from employers. She argued that irregular shifts cost one in three zero-hours contract workers about £3,000 a year, emphasizing the mental and financial health impacts on workers.

With the consultation closing soon, the issue will be a priority for Reynolds upon his return as business secretary.