This week it was reported that there are now c 700,000 people on zero hours contracts. There are some big brand names responsible for this unfair treatment of workers including JD Wetherspoons, Burger King, Domino Pizzas, Sports Direct and McDonalds. Big chunks of the hotel, catering,education and care sectors use zero hours contracts which is said to have helped create the flexible workplace which has in turn helped the UK improve its economy and get out of recession.
However, this short-termism has an impact on the UK's long-term ability to compete. Workers on zero hours contracts are less likely to build up useful skills and employers are less likely to invest in their training-creating workers with low skills, lower productivity, lower morale and less loyalty.
The key reason for treating employees fairly ie ethically, is because it is good for business eg through the "value creation cycle" where if employees believe they have a good deal from a firm (compared to alternatives) they are more likely to put more effort and loyalty into their roles than otherwise would be the case, their behaviour results in better performance, allowing the firm to improve the value proposition to customers, who then buy more, leading to growth in sales and profits etc etc. It's called "positive reciprocity" and benefits the economy long-term. We need highly skilled, highly motivated and highly productive workers to compete in today's and tomorrow's global economy.With many of the young on zero hours contracts, instead we are creating cultures of "negative reciprocity" fuelling the erosion of trust and growth in cynicism from our future generations.
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