Cable vows action on 'zero hours'

Written By Unknown on Senin, 16 September 2013 | 15.36

15 September 2013 Last updated at 19:00 ET By Brian Wheeler Political reporter, BBC News, in Glasgow

Business Secretary Vince Cable will vow to end the abuse of zero-hours contracts by some employers in a speech to the Lib Dem conference in Glasgow.

He will say economic recovery must not come at the cost of workers' rights.

Mr Cable is also looking at how to raise the minimum wage without costing jobs, and will unveil a crackdown on "rogue" company directors.

Labour leader Ed Miliband has vowed a crackdown on zero-hours contacts if he wins the next general election.

The Office for National Statistics has estimated that around 250,000 workers are on such contracts, which allow employers to hire staff with no guarantee of work - but some estimate the total is much higher.

'Delicate times'

Employers - including large public sector organisations - say zero-hours contracts can boost flexibility and reduce unemployment but critics, including Ed Miliband, are concerned about some firms exploiting their workers.

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Before the summer Lib Dem MPs debated their economic policy. Vince made his case and lost.

Mr Cable has launched a consultation on how to tackle abuses - particularly relating to the issue of "exclusivity", where employers do not offer guaranteed hours but insist that workers do not work for anyone else.

The consultation is expected to conclude in the New Year and aides have said that it could result in legislation in next May's Queen's Speech, if government time is available.

There will be no promise to ban zero-hours contracts or exclusivity agreements, as Mr Cable has expressed the view that they are suited to some occupations.

Mr Cable will say: "It is clear that there are abuses in the system, especially around the issue of exclusivity which some employers are demanding from workers on these contracts. I am determined to make sure people are paid and treated fairly, while helping to keep people employed in these delicate economic times."

Mr Cable's big speech will come directly after what is being billed as a crunch debate on the economy in which Nick Clegg will try to convince his party to embrace the coalition's policies.

Scandals

Mr Clegg is said by aides to be concerned that the Conservatives will "hoover up" all the credit for economic recovery.

He will take the unusual step for a party leader of taking part in the conference debate, but Mr Cable is not expected to take part and may not even vote.

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If the government is serious about ending abusive zero-hours, then it must legislate to stop exploitative employers. It's time for action rather than more consultations"

End Quote Frances O'Grady TUC General Secretary

BBC Political Editor Nick Robinson said the business secretary had failed to persuade Lib Dem MPs to back him on the economy at an away day in Milton Keynes two months ago.

A source close to Mr Cable said he supported Mr Clegg's conference motion, but thought it could be improved by including proposals contained in rebel amendments, for a different approach.

Mr Cable will also use his conference speech to say he wants new laws to make it easier to prosecute fraudulent or reckless directors, in the wake of scandals in banking, nursing homes and Christmas savings firm, Farepak..

New powers will include the ability to:

  • Give more help to individuals seeking compensation for damage caused by a director's criminal or reckless behaviour
  • Assist individuals seeking compensation for damage caused by a director's behaviour
  • Ensure directors banned from running companies abroad cannot launch firms in the UK
  • Extend the time available to investigate complex cases of director misconduct
  • Introduce corporate training for banned directors who want to run a company again

Mr Cable has also asked the Low Pay Commission to carry out a study on what economic conditions would be needed for the minimum wage to rise more quickly than it has in recent years without costing jobs.

"The National Minimum Wage is a vital safety net in protecting the low paid," Mr Cable will say.

"However, as signs of an economic recovery start to emerge, we need to do more to make sure that the benefits of growth are shared fairly across the board."

Mr Cable's aides have been talking up the move as a "victory" for Mr Cable against Conservative colleagues who up until recently were against any increase in the minimum wage.

But they said any changes would not happen "overnight" and would not come into effect until 2015 at the very earliest, even if Low Pay Commision backed an increase.

The minimum hourly rate will rise to £6.31 for staff aged 21 and over after 1 October.

TUC General Secretary Frances O'Grady said it was "good to hear Vince Cable talk about the importance of tackling low pay and stamping out the exploitation of zero-hours workers" but she said "warm words" would not achieve change.

"If the government is serious about ending abusive zero-hours, then it must legislate to stop exploitative employers. It's time for action rather than more consultations."


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