Beds & Bars chief executive Knowles expressed his views after Business Secretary Vince Cable said the Government would review of the use of ‘zero-hours’ contracts.
“Any Government interference for business is not good. It over-reacts rather than responds,” said Knowles.
An investigation by the Publican’s Morning Advertiser last week revealed a number of pubcos use zero-hours contracts for their staff.
Zero hour contracts
Knowles said flexible-hours contracts are essential for the pub trade.
“It is not zero-hours contracts I have an issue with, but how they’re used. The industry has had part-timers working in our industry for as long as I can remember and an average pub turning over a reasonable sum of money could have up to 10 or 15 part-time staff.
“They cover full-timers; cover for staff holidays; and cover each other for busy sessions or for functions. The concept of that has to be right and the Government has to take that on board.”
He is particularly concerned, however, about the guarantee of hours to staff. “There is a need for part-time contracts and a need for flexibility in the workplace.”
But he issued a note of caution, claiming that the misuse of the contracts could hinder recruitment to the pub and hospitality trade.
“I want people to be protected so that when, at the start of the week they are given shifts, those shifts then can’t be changed. How can someone run their life, pay rent, mortgage, buy food and pay bills if they don’t know their income from one week to the next?"
PMA investigation
A PMA investigation, conducted last week, confirmed that leading hospitality firms Whitbread, Stonegate and Mitchells & Butlers do not operate zero-hours employment contracts.
Meanwhile, brewer and pub operator Greene King is “currently in the process of removing” the practice. JD Wetherspoon said 80% of its staff (24,000 people), are on the contracts, but pub managers “try to give staff the hours they want”.
Spirit Pub Co confirmed it uses the contracts, but added all its staff are entitled to benefits such as holiday pay and company discounts.
Keith Knowles has unveiled details of an industry initiative, which is set to be launched next spring and will ‘kitemark’ good employers in the hospitality sector.
In his capacity as a director of the BII (British Institute of Innkeeping), he said: “We are looking to establish a kitemark that will recognise employment and training best practices and we are looking to link with Investors in People and the Hospitality Guild to do this. A joint three-way kitemark says ‘here is a site that values its staff, invests in staff, and has best-practice working contracts’.”