Minimum wage increase useless without end to zero hours

Unite Union has welcomed the 50 cent an hour increase in the minimum wage but says that no matter what level the minimum wage reached it is of little benefit unless it is combined with an end to zero hour contracts.

Unite is calling on the government to set a target to have the minimum wage progressively increased from its current level of about 50% of the average wage to two-thirds of the average – which was the standard in New Zealand in the past.

The entire benefit of a pay rise can be lost for someone on around 20 hours a week if they lose only one hour’s pay. We will be taking a claim for guaranteed hours to be the norm in the negotiations this year with fast food companies and others who have most staff working under what have been dubbed zero-hour contracts because they have no guaranteed minimum number of hours.

Zero Hour Myths exposed by Fast Food worker survey

A major survey of fast food workers in New Zealand has

exposed the reality of “Zero Hour Contracts” for workers and some of the myths used to justify them.

Over a thousand fast food union members working for the major brands in New Zealand responded to Unite Union’s online survey, with nearly 700 giving detailed information on their working hours over the previous four weeks. That is the biggest response Unite Union has ever had to a member survey.

“Unfortunately it confirms in detail what we already knew from our worksite visits” said Unite Union National Secretary Gerard Hehir.

“Most fast food workers are willing and able to work more hours on a regular basis but are simply not given the opportunity. Over half who took part actually want an increase to 35 hours or more a week. We know hours become available on regular basis as other staff leave, but the companies choose to employ new staff and allocate hours week to week rather than offer any security of income.”

SEVEN “ZERO HOUR” MYTHS VS REALITY

Some employers and politicians are trying to defend “zero hours” contracts as in the workers’ interest and trying to shift the focus away from the core problem of not having 

Results from Unite Union’s survey of fast food workers shows how far these ‘myths” are form reality:

Myth 1: Zero Hours Contracts give workers the flexibility they want.

Many fast food workers do want part-time work (although many who are part- time want to be full time – half of all workers wanted additional hours that would take them to 35 hours a week or more). There is a huge difference between regular part-time work with regular hours and a zero hours contract where you only find out your weekly hours and shifts a few days before they start. Fast food companies like the flexibility of zero hours contracts – their workers do not.

79% in the survey said that changes to their weekly hours causes them problems with paying basic living costs like rent, power, phone, food and transport. 42% said these problems happen on a regular basis. The comments on the difficulties roster changes caused were numerous and disturbing:

“If my hours drop anymore I won’t be able to feed my family.”

“It has severely affected my credit rating, I was referred to the nz budgeting service, due to my hours getting cut my bills suffered, I received over $4000 in police fines as I couldn’t afford to reg and wof my car due to change in my hours/income. My children lived off noodles and eggs for their main meal approx 4 times a week. Last but not least, I had to resort to criminal activity to ensure my children had lunch for school and warm clothes/shoes during the winter. Desperate times called for desperate measures “

“Most the time i have to put off a different bill each week to be able to pay rent or buy food there has been a few times and a whole month where I
haven’t been able to buy any food at all because my hours were cut down. I use to be on 45 a week now I’m lucky to get 25.”

“One staff member with 2 children under three has had her hours almost halved in about 5 weeks and management just argue the point and don’t listen”

Myth 2: Zero Hour contracts are jobs where you can’t work for someone else and you have to wait by the phone ready to work at a moments notice.

Those are just one type of these contracts. In fact a “zero hours contract” is just what it says: an employment agreement where there are no guaranteed hours, regardless of whether you are told your hours week by week or day by day. Apart from a few salaried managers, all fast food workers are on zero hours contracts, along with tens of thousands of other workers in the hospitality and retail sectors. Our survey showed that fast food workers worked an average of 25.5 weekly rostered hours, but that they also worked an average of 3.2 additional hours at short notice.

Wendy’s accused of illegaly intimidating workers to stop striking

Wendy’s workers first strike at Hornby, Christchurch, on February 18, 2015

Unite Union has accused the Wendy’s corporation of intimidating workers to stop striking. Workers have been pulled aside by managers to caution them against striking "or there would be consequences for their future at Wendy’s". One union delegate was called into a meeting with the company CEO Danielle Lendich and told not to join the strikes.

Ironically today has been designated a global day of action in defence of the right to strike by the International Trade Union Confederation.

Unite action at Wendy’s is part of the union campaign against zero hour contracts in the industry. The company has written to staff and the public to say that all staff get hours each week but what they don’t say is that most staff have zero hours guaranteed. The only group of workers with guaranteed hours at Wendy’s are those with two years service and "open availability" over six or seven days in the week.

TV3: End Zero Hours protest Feb 14

International action supports Unite’s campaign against zero hour contracts

Workers in Indonesia and the Philippines took action to support the New Zealand fast food workers in their campaign against zero hour contracts by holding solidarity pickets outs9ide local McDonald’s store in both countries. Messages of support were also received from Kong Kong and Korean union activists involved in the international campaign to win union rights in the fast food industry.

PHILIPPINES

VALENTINE’S Day was celebrated today by youth members of the Alliance of Progressive Labor by picketing a bustling McDonald’s outlet in Quezon City as part of the Philippine leg of the international campaign against “zero hour” work contracts.

Strike at Wendy’s Palmerston North today

Wendy’s workers Palmerston North strike today over not receiving their days in lieu and not receiving all of their entitled breaks. With solidarity from Dion First Union and Roger Middlemass Meat Workers Union and Unions Manawatu

Fast food workers meet to “End zero hours in 2015!”

This Saturday, February 14, over 100 fast food workers from across New Zealand will be gathering in Auckland to discuss their upcoming battle to end zero hour contracts in the fast food industry. The conference is also open to anyone who wants to actively support the workers campaign.

This issue has emerged as the number one problem for workers in the industry over recent years. Almost no hourly paid staff have guaranteed hours. Attempts through previous collective agreements to regulate the allocation of hours in a fair and transparent manner have been unsuccessful. Unite has collective agreements with McDonald’s, Restaurant Brands (KFC, Car’s Jr, Pizza Hut and Starbucks); Burger King and Wendy’s. Whilst real improvements have been made it has proved difficult to get the companies to abandon their attachment to “flexibility” around rostered hours. The best we have achieved is to have clauses that specify the need to advertise hours to existing staff before new staff are hired but that has proved difficult to enforce.

The companies have a turnover of staff of about 66% a year and we have tried to argue that this could be reduced with regular guaranteed hours but the companies seem unmoved by that argument. They seem to prefer the control that zero hour contracts give over their staff. These type of contracts also exist in the security industry, hotels and many call centres where Unite represents workers as well.

Wendy’s workers take action over stolen lieu days

US McDonald’s workers Genoby Jimes (2nd from left) and Anggie Godoy (3rd from left) join Wendy’s workers outside the Royal Oak store in Auckland February 10. (Photo by Jos Wheeler)

Wendy’s workers from five stores in Auckland and Papakura walked off the job yesterday over the company’s theft of their right to “alternative days” off or “lieu days” for working on a public holiday.

The workers were joined outside the Royal Oak store by two McDonald’s workers from the USA who are part of the campaign in Los Angeles for “$15 and hour and a Union“. Anggie Godoy, 19, and Genoby Jimes, 27, are in New Zealand to support Unite Union’s campaign against zero hour contracts in the fast food industry and will be attending a national fast food workers gathering in Auckland on February 14. Meetings are also planned in Wellington on February 11 and 12 with the Council of Trade Unions, members of parliament and union activists

CTU: Wages didn’t keep up with productivity

CTU Economist Bill Rosenberg Workers have been short changed by up to one sixth of the wages they should have earned as a result of employers not sharing the benefits of productivity growth, the Council of Trade Unions said today. A study released today by the Productivity Commission shows that real wages fell significantly behind productivity growth in a large part of the economy between 1978 and 2010. This resulted in wages and salaries, and labour income of self-employed people getting a falling share of the income the economy generates (the labour income share).