It’s taken far too long, but campaigners have scored a huge win against Sports Direct, which will now finally begin to address the deeply unjust way it treats its workforce. The firm has been forced to abandon some of its worst employment practices: zero-hour contracts, a wage that effectively falls below the minimum wage, and the notorious “six strikes” policy.
The company hasn’t conceded out of the kindness of its heart. It’s Unite the Union – and the resolute workers on shopfloors throughout the country – who deserve real praise for forcing the company’s hand, along with the Guardian and its reporter Simon Goodley for their impressive undercover reporting. It’s a battle that exemplifies the crucial role of strong alliances in this era of rising insecurity and widespread exploitation in the workplace.
But this is only the beginning – we still need to end exploitation and precarious employment at Britain’s biggest sports company. The change to fixed-hours contracts will not apply to agency workers who make up the majority of employees in Derbyshire. And only time will tell whether working conditions in the Shirebrook warehouse – which has been compared to a Victorian workhouse – will really improve in practice.
Sports Direct is far from alone in seeking to maximise profit from poor employment practices. Examples of exploitation are everywhere. Deliveroo was recently forced to back down over a new arrangement which could have seen its workers earn less than the minimum wage. It still uses self-employment contracts to avoid offering its workers job security, basic employment rights like sick leave, or support if they are involved in an accident at work.
The “gig economy” – facilitated by apps like Deliveroo and Uber – offers flexibility to workers and convenience for customers. But there is a dark side to the digital marketplace: where firms exploit their workers with impunity and those workers struggle to organise and fight back.
The rise in casualised employment, agency work and zero-hour contracts is at the heart of a new age of insecurity in which we now find ourselves. One in three households are just a pay packet away from losing their home; I’ve lost count of the number of families I’ve met whose lives are blighted by uncertainty about where next month’s rent or tomorrow’s dinner will come from. Simply put, the economy is failing to deliver jobs people can build a life on.
This failure is being compounded by government policy. The relentless dismantling of the welfare state by the Conservatives under the guise of “reform” has created new insecurities and erected barriers for those seeking work. In-work poverty has also risen. The steep rise in foodbank use bears witness to both stagnating wages and the undermining of all social security.
With a welfare state in crisis and a workforce increasingly under the cosh, it’s becoming increasingly clear that we need to transform our economy to ensure it provides security and welfare for all, rather than simply rewards for those at the top and a daily struggle for those at the bottom.
But we must also accept that the welfare state was set up for a bygone age. When assumptions about a job for life, full employment, and the working week were very different.
We live in an age in which the economy – and work itself – are rapidly changing. New technologies mean that the workspace of the future does not look like that of the past. The employment practices of companies like Sports Direct and Deliveroo pose real challenges to workers’ rights.
It’s time for bold ideas that will tackle the insecurity of the 21st century and the new economy.
The Green party advocates a universal basic income. A tax-free, regular payment made unconditionally to everyone, without means test or work requirement. Cheap and transparent to administer, the money would be clawed back through taxation of high earners. A simplification of the now overcomplicated benefits system, with additional payments for additional needs around housing and disability, it would provide real security to everyone. It would also provide freedom, choice and opportunity.
A basic income would offer greater financial independence and a platform for anyone wanting to pursue a new venture or start a small business. Whether for those moving between work and education, or in and out of employment, it would eliminate the benefit trap. It would recognise the huge value of unpaid and voluntary work, and support those who have caring responsibilities, especially in an ageing society. It would provide a real safety net, combating poverty and promoting equality. But it would not penalise claimants with difficult and complex lives. For the majority of the million people who rely on foodbanks due to problems with their benefits, it would be a lifeline.
But perhaps most crucially, a basic income would look to the future, not the past. The welfare state has failed to keep up with economic and social change, let alone anticipate it. A basic income would cater for the increasing vulnerability and insecurity workers face in the context of more technological advance and globalisation.
Of course, the basic income wouldn’t remove the need for robust and comprehensive workers’ rights laws – and in the immediate term the government must do more to crack down on employers like Sports Direct. Ending zero-hour contracts, guaranteeing trade union access to all workplaces and introducing a genuine living wage are just a few steps which would make a huge difference to millions of working people’s lives – both for those at Sports Direct and elsewhere. We would all gain from the end of the age of insecurity and an economy that’s better adapted to meeting the challenges of modern Britain.
