Embarrassment for the sector as unions accuse organisations of double standards

A worrying rise in the use of zero hours contracts by Scotland’s social firms has been condemned by the country’s leading trade unions.

Figures published this week in the 2017 social enterprise census show a 3% increase in staff employed on the contracts, despite statistics last month revealing a decrease in their use by private sector SMEs.

Findings reveal that while the SE sector has increased in size and revenue since the last census in 2015, a shocking 15% of these organisations are now using zero hour agreements.

The revelation is as a major embarrassment for a sector which prides itself on ethical working practices.

Dave Watson, head of public affairs at Unison Scotland, called on the sector to stop exploiting vulnerable workers.

"It is very disappointing that zero-hours contracts are on the increase,” he told TFN.

“These numbers are just the tip of the iceberg. Many more workers are employed on exploitative nominal hours contracts that create similar problems for this vulnerable workforce.”

There are 5,600 social enterprise in Scotland, according to the census, meaning around 840 could be exploiting the workforce via zero hour contracts.

Bryan Simpson of Unite said the figures were not isolated with some employers in the third sector “taking the definition of voluntary too far.”

He said: “The Fair Fringe campaign unearthed some worrying examples of for-profit organisations such as the Pleasance using their charitable status to give staff an honorarium of between £6-800 for five weeks full time work.

“We are currently working with progressive MPs to put together legislation which seeks to outlaw unpaid trial shifts.

“While we appreciate that the third sector relies on voluntary work we are seeing far too many companies taking the definition of voluntary far too far.

“Our campaign against unpaid trial shifts will not shy away from tackling abuse in the third sector.”

Zero hour contracts explained

Zero-hours, or casual, contracts allow employers to hire staff with no guarantee of work.

A high proportion of staff at companies including retailer Sports Direct, pub chain JD Wetherspoon and cinema operator Cineworld are on zero-hours contracts.

They mean employees work only when they are needed by employers, often at short notice.

Their pay depends on how many hours they work Sick pay is often not included, although holiday pay should be, in line with working time regulations.

Employers say zero-hours contracts allow them to take on staff in response to fluctuating demand for their services, in sectors such as tourism and hospitality.

Employers also say that many workers appreciate the flexibility that a zero-hours contract gives them.

However Duncan Thorp, policy and communications manager Social Enterprise Scotland, said the figures reflected a general rise of insecure employment across Scotland and the UK and that the issue of zero hours contracts was not “clear cut.”

He added: “Exploitative zero hours contracts should be phased out but some workers do benefit from the flexibility of this type of work.

“We recognise the need to examine the issue of zero hours contracts in the sector in more depth, to really understand what is happening.

“We strongly believe that everyone who works in a social enterprise should have a fulfilling, secure and well paid job, where their workplace rights are respected."

A spokesperson for the Scottish Government said the figures were a setback to the ethical credentials the sector has worked hard to achieve.

“This year’s census shows that social enterprises make a huge contribution to our communities and economy, reinvesting all profits into a social or environmental mission.

“But those contributions must be felt not just by those who benefit, but the staff who help deliver them.

“Making employees feel valued, rewarded and engaged in their work is important for a strong economy.

“We are using all powers at our disposal to encourage ethical business practice and protect workers’ rights.”