Variable-hours scheme

This chapter describes the different types of variable-hours schemes available to employers, including annualised-hours and zero-hours contracts. It also discusses the advantages and shortcomings that employers and employees have experienced with the various schemes.

KEY POINTS

  • variable hours schemes give employers the temporal flexibility to meet both predictable and unexpected variations in demand and to adapt working patterns to business requirements without incurring additional labour costs;

  • the increasing use of the different forms of variable hours schemes, such as the compressed working week, annual hours and zero hours, suggest that some organisations are taking a more strategic approach to this type of human resourcing;

  • it is estimated that around 9% of the UK's workforce are covered by annual hours arrangements. A 1996 survey reported that 11% of organisations used annual hours contracts, 85% of which had been introduced since 1991, while a study of such schemes in local government found that 18% of employers used annual hours and that 88% of the schemes had been established since 1985;

  • our survey has found that 45% of respondents operated some form of hours variability system - annualised hours, time banking, flexible part-time contracts and/or zero hours arrangements;

  • in 66% of cases, the flexible working time pattern is found in the core operations of the organisations concerned;

  • by far the most common reason - cited by 94% of employers - for introducing variable-hours working is to adjust staffing levels to peaks and troughs in business activity;

  • 53% of employers said that the aim of reducing overtime has been a major influence on their decision to introduce a variable-hours system;

  • the problems experienced by the organisations surveyed by Management Review with variable-hours working included employee motivation (31% of organisations), workforce cohesion (25% of respondents) and aspects of communication (19% of employers); and

  • staff employed on zero-hours contracts can themselves be inflexible, because they may be unavailable when required; can be less committed and loyal than other staff, and can pose difficulties in terms of training and communication.

    Variable-hours working gives employers the temporal flexibility to meet both predictable and unexpected variations in demand and to adapt working patterns to business requirements without incurring additional labour costs. Employers have long recognised that there are cost advantages in matching working hours more closely to product or service demand.1 But current approaches, such as annualised hours or work patterns that compress the working week, differ from previous managerial attempts to achieve greater working time flexibility. The latter largely relied on "overtime, short-time working and temporary shifts".2 Variable hours produce cost savings for employers because they reduce the need to resort to costly overtime and maximise the use of working time. Particularly in the case of annualised hours, productivity often improves, while absenteeism falls.3 There are also potential benefits for employees. For example, staff have greater leisure time and a stable income.

    Although employers' use of flexible working schemes appears mainly to be an ad hoc response to business needs, the greater use of variable-hours arrangements suggests that, as with part-time and temporary workers, some employers are taking a more strategic approach to this form of staffing. Between 1990 and 1993, the proportion of UK employees covered by an annualised-hour scheme (explained in figure 5.1) increased from just over 6% to around 9%, although more recent Labour Force Survey (LFS) figures suggest that only 4.5% of the workforce are employed in this way.4 A 1996 survey of flexible working practices reported that 11% of organisations used annual-hours contracts, 85% of which had been introduced since 1991, while a study of these schemes in local government found that they were used by 18% of local authorities and 88% of them had been established since 1985.5 A further study, conducted in 1995, reported that the number of organisations using annual hours had increased by 50% since 1993 and that the proportion of enterprises with a least 10% of the workforce covered by these contracts had doubled.6

    Variations on annualised-hours systems are also becoming popular. Parcelforce, for example, operates a flexible hours arrangement that allows the company to vary employees' weekly hours within a four-month period. The agreement, which formed part of its 1995 pay deal for 10,000 non-managerial workers, commits staff to "complete all necessary work for the day", even if this means working beyond their contractual hours.7

    Besides annualised hours and its variants, variable hours arrangements cover a multitude of flexible employment practices. For example, flexitime systems, whereby staff can vary their starting and finishing times in a given period as long as they work their contractual hours, have a long history and have been widely used in many non-manual UK workplaces, particularly in the public sector, since the practice was first introduced into this country from Germany in the 1970s as a means of boosting recruitment and retention.8 A 1995 survey found that more than 11% of the UK workforce was covered by some kind of flexitime arrangement.9 Flexible rostering patterns and shift patterns that compress the working week, such as seven-day two-shifts, and time-banking and zero-hours schemes also come under the variable hours banner. Several studies of zero-hours contracts estimate that they are used by around 20% of UK businesses.

    The 1995 IRS study of women's employment and pay in retail and finance also identified a clear trend among employers to demand greater flexibility in working hours from part-time staff, and this development can also be seen as a form of variable-hours working.10

    There are numerous examples of organisations that have implemented flexible working time patterns over the past few years. For example, betting shop business Coral established a time-banking system for deputy managers in 1995 that involves staff working 40 hours a week during the summer months when outlets are open longer, and 30 hours a week in the winter.11 BT's Customer Service Improvement Plan, which was also introduced in 1995, includes a flexible rostering system that offers engineers the choice of four attendance patterns and includes weekend and evening working as part of the normal working week.12 The Public Gas Supply element of the then British Gas Trading, agreed a "planned flexible working" system with its 7,000 staff and senior officers in 1996 that involves a requirement for work team members to plan their individual 37-hour basic working week within a standard 70-hour range, from 8am to 8pm.13

    In the financial services sector, the pre-merger Royal Insurance implemented an arrangement known as the "flexible workplace" for various staff groups between 1993 and 1996 that involves them working rotating shifts so that direct operations are covered from 8am to 8pm daily. The Bank of Scotland meanwhile introduced a time-off-in-lieu system in 1992, whereby all staff eligible for overtime can convert additional hours into days off rather than receive overtime payments.14

    WHY HAVE VARIABLE HOURS?

    Different variable hours schemes offer employers differing levels of flexibility. Hence an employer's decision to use one form or another depends largely on the degree of flexibility required of the staff. For example, annualised-hours systems organise working time on the basis of a set number of hours per year rather than per week. Similar, less radical, arrangements, may use a three-month or half-yearly basis. Such systems typically specify a number of rostered hours and then an additional amount of working time which is kept in reserve by the employer to cover operational requirements. Annualised-hours arrangements can be said to encourage maximum productivity during the standard working week. In contrast, zero-hours workers have no fixed hours. Employees are expected to be available as and when the employer requires them and they are paid only for the hours that they actually work.

    The survey conducted for this issue of Management Review found that 45% of respondents had some form of variable-hours system - annualised hours, time-banking, flexible part-time working and/or zero hours. In 66% of cases, the flexible working time pattern was found in the core operations of the organisations. By far the most common reason - cited by 94% of employers with variable-hours systems - for having this kind of arrangement was to adjust staffing levels to peaks and troughs in business activity (see figure 5.2). Employers citing this as the main reason came from all sectors of the economy and included Actionaid, market research business BMRB International, Essex Fire and Rescue Services, Matsushita Electric (UK), Oxfam, Faversham-based Pilkington, the Prescription and Pricing Authority and Thomson Holidays. Other important reasons given by surveyed employers as significant factors in their organisations' use of variable hours were to respond to employees' demands for flexibility and to reduce overtime (cited by 56% and 53% respectively of respondents that operated variable-hours systems).

    Figure 5.2: Employers' reasons for using variable hours

    n = 32.

    A quarter of surveyed organisations with variable hours systems had changed their use of them since 1995. Among private sector respondents, Widnes-based chemicals company Albright & Wilson has introduced annualised-hours contracts as means of maintaining or reducing costs; the library supply and subscriptions arm of publisher Blackwell's has given its managers greater authority to vary staff hours as a way of ensuring greater flexibility to respond to variations in the business; and Bonas Machine Company has also introduced annualised hours and time-banking as a response to fluctuations in business needs.

    In the public sector, Warwick Hospital has increased hours variability in order to extend clinic opening hours into the evenings and to cut waiting lists.

    Annualised hours

    The key objective of annual-hours schemes is to use working time more efficiently to meet business needs. As was noted earlier, such schemes can offer advantages in terms of meeting fluctuating business requirements; increased productivity; helping to contain the pay bill, and overcoming absenteeism and associated problems.15 Early uses of annual hours in the UK - the system first appeared in this country in 1956, when it was introduced by an aluminium producer - were in continuous process industries. This is because it enabled employers to limit overtime, that "incentivises low productivity in normal working hours", and give staff more leisure time by moving away from the previous long-hours culture.16

    As this suggests, annual-hours schemes can also offer benefits in terms of employee morale and motivation. A 1993 survey conducted on behalf of the Institute of Personnel Management (now the Institute of Personnel and Development) reported that almost all respondents with annualised-hours systems said that their employees' reaction had been positive.17 The study also found that in around 10% of organisations annual hours were being used to assist in the recruitment and retention of employees. In the public sector, in particular, such arrangements can help employees to combine work and domestic responsibilities by, for example, making it possible for them to work reduced or no hours during school holidays (see, for example, Scunthorpe & Goole Hospitals NHS Trust case study).

    However, among organisations responding to the IPM survey, the most commonly-cited reason for introducing annualised-hours working was that it often "served as a springboard for introducing a broader package of change".18 This included restructuring, the harmonisation of employee terms and conditions, the introduction of single-table bargaining, alterations to reward structures, productivity bargaining, multiskilling and reduced labour levels.19

    Other studies have confirmed that the introduction of annualised hours can support cultural change. As one author has concluded:

    "Far and away the most significant benefit [from annualised hours] has been the facilitation of cultural change . . . This has meant the ability to move away from tradition and build new relationships with the workforce and unions."20

    For example, the introduction of annual hours working by Rockware Glass at each of its five UK sites in the early part of the decade was just one aspect of a three-year change programme that also included new shiftworking arrangements and the harmonisation of pay and other conditions. It was also, in part, a response to the engineering unions' campaign for a reduction in the working week and the need to tackle the high levels of overtime that was routinely being worked, as well as growing problems of arranging absence cover in the existing shift system.21

    In the health sector, in particular, annual hours can offer a way of matching staffing and workload, while reducing reliance on temporary or bank staff. Before the introduction of annualised hours at Northallerton NHS Trust, for example, shift rosters for nursing staff were planned a month in advance.22 This did not allow the trust to cope with sudden peaks in workload and meant that nursing managers were forced to devote considerable time to reshuffling rosters, while bank staff were called in at short notice to make up any staffing shortfall. Under the annual-hours system, staff are contracted to work 1,957 hours per year (1,670 after allowances for holidays and training are deducted) and can be rostered to work for between zero and 48 hours a week. Rosters are prepared weekly, enabling managers to identify which staff need to be on call - a key feature of the system. This provides the trust with a "reserve workforce able and willing to respond quickly to the needs of the organisation". As a result of the introduction of annual-hours working, the trust has reduced its dependence on bank staff and has thus cut labour costs and increased productivity.

    When Bristol and West Building Society introduced annual-hours working for all its 2,000 staff in 1991, it became the first financial sector organisation in the UK known to be using the system.23 The society's objectives in developing it were:

  • "to guarantee the hours needed to promote excellence in all aspects of customer relationships;

  • to be universal in its application and not differentiate between people in different locations or disciplines;

  • to cope with a wide range of hours;

  • to break away from the rigid weekly hours routine and allow individual variation based on workload rather than fixed hours; and

  • to have a firm contractual base clearly understood by both parties whilst retaining those elements of flexibility necessary to respond to unplanned changes in circumstances."

    Other financial companies have since followed Bristol and West's example. Alliance & Leicester, the former building society turned bank, has introduced annualised hours for branch staff that will accommodate staff preferences, including term-time working, within an agreed fixed number of working hours to be scheduled throughout the year (see case study one). NatWest Bank has also piloted annualised hours among 1,500 staff and is evaluating the scheme before launching it further. The greater flexibility offered by such a system is in part designed to boost recruitment, particularly among people with childcare responsibilities.24 Nationwide Building Society introduced an annualised-hours system in 1995 for staff in its technology division in order to achieve "more flexibility, aligned to the needs of the business; reduced premium payments and [provide] better hours coverage".25

    Zero-hours contracts

    Wide-ranging flexibility is the main motive for employing workers on zero-hours contracts (see figure 5.1), according to one study of such arrangements.26 This research found that almost all the survey respondents (92%) using zero hours cited the ability to deal with work fluctuations as a key reason for employing staff on this basis. This was followed by flexibility in planning (75%), while 53% of respondents saw such arrangements as way of making cost savings - all the respondents to the survey said that they treated zero-hours workers less favourably than full-timers in respect of pay and conditions of service. Twenty-five per cent of participants said that they were attracted to zero hours by the perceived lack of legal rights applying to such employees.

    The 1995 IRS study of women's employment and pay in retail and finance found that employers used zero-hours workers to secure a ready supply of labour at short notice, but without the cost, for example, of recruiting temporary staff.27 One manager in a national retail chain expressed the rationale behind the company's use of zero-hours contracts thus:

    "We used to take on seasonal workers and finish with them by mid-January. The fixed-term contracts were usually for 13 weeks. But now we are not having any fixed-term contracts. Now we are going for zero-hours contracts and that is a company decision. The individual is contracted to be available for work, but we can specify the time. So someone can be a zero hours Monday to Friday, or a zero hours Saturday. We pigeonhole the time-slot. We tell them the previous week the hours to work the following week. We tell them on Thursday and ask them to confirm that day. If they can't do it, we find others. For the zero night people we might ask for anything from one to 60 hours. For the day people we don't ask for more than 39 hours because of the premium payments involved."28

    The same study found that zero-hours workers offered employers other cost benefits. They tended to be at the "bottom of the heap" when it came to pay and conditions, with worse remuneration than that of either part-time or fixed-term contract staff. Moreover, zero-hours staff were generally not eligible for any employee benefits beyond basic pay, and in some cases were on a lower rate of pay than other employees doing the same job.29

    In December 1992, furniture retail business Allied Maples established a new category of staff, called "key-timers", who were employed on zero-hours contracts to improve customer service and sales by matching store staffing more closely to trading peaks and troughs.30 However, unlike such contracts elsewhere, the company's key-time staff received the same statement of terms and conditions of employment as both full- and part-time staff, with the following difference:

    "Key-time staff - working hours will be agreed with management on a local basis. There is a requirement for flexibility in days/hours worked to ensure staffing levels at identified key times, including bank holidays, Saturdays, Sundays and late nights. These times will be identified for each store and may vary from time to time. Any variation in the hours which you are requested to work will be agreed in advance with local management."31

    Woolworths has in the past employed around 15% of its 28,000 workforce on zero-hours contracts (see case study five). A large proportion of the zero-hours staff are either people who had previously been employed by the company on other contracts, but who can no longer commit themselves to regular hours owing to family circumstances, or "ex-employees", who are now students and are available for work during college vacations.

    Flexible part-time working

    Another form of variable-hours working that may be an alternative to zero-hours contracts for some employers involves part-time staff. Such employees will be guaranteed a specific number of working hours each week, but they must also make themselves available to work additional hours if required.

    Most of the retail employers in the 1995 IRS study placed a contractual obligation on part-time employees to be flexible about the hours that they worked.32 In practice, retailers often stratified their part-time workforce, with older, longer-serving staff typically having more stability in their working hours, while younger employees were likely to be required to "flex upwards" - that is, work additional hours at short notice. The increasing demand for hours flexibility from younger part-timers was in response to the competing needs to improve customer service and reduce costs in the context of a tight economy.

    Tesco employs around 10% of its staff on flexible part-time contracts that involve working a certain number of core hours a week, usually between 10 and 16, with an agreement to work substantially more, up to a maximum of 31, if necessary.33 This scheme was a response to a range of problems that the company had encountered with its traditional working patterns - notably, having to require staff to work regular overtime, which they were unwilling to do; increasing overtime costs, and the additional costs of employing temporary workers, who were typically less productive than full-time staff.

    PROBLEMS WITH VARIABILITY

    Over half (53%) of the organisations in the present Management Review survey that used some form of hours variability reported that they had encountered no problems with it. Among the others, the most common difficulty was employee motivation (31% of organisations) followed by workforce cohesion (25% of respondents) and aspects of communication (19%). Figure 5.3 shows the proportion of respondents citing each of the problems.

    Figure 5.3: Problems variable hours arrangements

    n = 15.

    Surveyed employers have responded to the difficulties in a variety of ways. At Cheviot & Wansbeck NHS Trust the hours regularly worked by bank staff have been converted into permanent contracts. TNT Express Worldwide has tried to raise awareness among managers of the issues surrounding variable hours working. Albright & Wilson rostered its "communication days" into the standard work pattern.

    The advantages and disadvantages of annualised hours, zero hours and flexible part-time working are summarised in figure 5.4 and the main difficulties are discussed below .

    Figure 5.4: Potential pros and cons of variable hours arrangements

    Pros

    Cons

    ANNUALISED HOURS

  • greater flexibility to match production/service requirements

  • less freedom for staff to plan leisure/personal activities

  • reduced overtime

  • reduced overtime earnings

  • improved productivity

  • employers no longer able to use overtime to motivate

  • lower absenteeism

  • additional managerial skills

  • multiskilling

  • staff must work extra hours at short notice

  • improved basic pay for staff - possible salaried status (harmonisation)

  • communications problems - especially where staff have extended periods away from the workplace

  • support cultural change

  • lack of choice in timing of holiday

  • improved employee morale/motivation

  • in companies with seasonal demand, staff will have to work longer in summer/spring

  • ZERO HOURS CONTRACTS

  • extensive flexibility to match staffing to demand

  • inflexibility (eg, if staff not available)

  • planning flexibility

  • lack of commitment/loyalty - high turnover

  • reduced labour costs (eg, lower overtime costs, lower rates of pay, not entitled to sick pay, holiday pay, bonuses or pension provision)

  • lack of motivation

  • ability to resource one-off tasks

  • poor quality staff/lack of training

  • cover for absence

  • communications problems

  • easier to adjust workforce levels

  • "on call" nature of work

  • VARIABLE PART-TIME WORKING

  • extensive flexibility to match staffing to demand

  • inflexibility (eg, if staff not available)

  • planning flexibility

  • lack of commitment/loyalty - high turnover

  • reduced labour costs (eg, lower overtime costs, lower rates of pay, not entitled to sick pay, holiday pay, bonuses or pension provision)

  • lack of motivation/low morale

  • ability to resource one-off tasks

  • lack of training

  • cover for absence

  • communications problems

  • easier to adjust workforce levels

  • poor quality staff/lack of training

  • larger potential labour pool to recruit from

  • "oncall" nature of work

  • ability to resource tasks that require only a limited time

  • poorer management control

  • Problems with annualised hours

    Organisations may face a number of problems in both introducing and operating annualised-hours systems. The IPM study, noted earlier, found that the common problems faced by organisations when introducing a scheme included employee resistance to the potential loss of overtime earnings, difficulty in reaching agreement on the rostering of holidays - particularly, the perceived lack of choice - and difficulties in relation to the reserve hours requirements of the systems.34

    Once schemes were in place, over half of the survey respondents faced some problems with their operation. The most common problem related to reserve hours. Employees had problems with the unpredictability of reserve hours and the short notice they might be given - which from an employer's point of view is one of the key advantages. Organisations themselves were concerned at the cost implications of paying for hours which may not actually be used: one study acknowledged that a fall in demand would result in an organisation paying for hours it no longer required and the business would be unable to "adjust its cost base without destabilising the system".35

    Also, some respondents to the IPM survey were concerned that their annual-hours schemes did not offer sufficient flexibility with regard to the hours that could be varied and the notice period for that variation.36

    Effective communication with employees was also seen as a problem, particularly where the rostering system meant that staff did not work for long periods. Other disadvantages cited by respondents to the IPM study related to the cultural change required on the part of managers, who needed to become accustomed to managing without overtime. In the past, this had been used as a tool to motivate staff. In addition, annualised-hours schemes are often complex, and there may be difficulties in ensuring that staff fully understand what they entail. They can also require considerable administrative resources.

    Staff at Northallerton Health Services NHS Trust were initially concerned that the new weekly rostering patterns that were part of the trust's annualised-hours system would make it impossible for them to make arrangements in their personal or family life as far in advance as they would like.37 Although the trust felt that under the new system staff would be better able to plan their personal activities, it has since advised nurse managers to draw up "predictive" rosters a month in advance.

    One commentator has said that adopting annual-hours working requires particularly careful planning and communication.38 It is important to set aside sufficient time for the development and implementation of the system and to allow for appropriate workforce consultation. The effective operation of an annual-hours scheme requires considerable cooperation between management and staff, especially when additional working at short notice is required. On this last point, it may be easier if employees are allowed to make their own informal rostering arrangements, as, for example, was done at the former Bristol and West Building Society.39

    Difficulties with zero-hours contracts

    Zero-hours schemes appear to offer employers unlimited flexibility. They also pose particular difficulties. One study found that a number of organisations had rejected this kind of resourcing on the basis that they would not get the required commitment or loyalty from staff employed in this way.40 Such problems were experienced by Woolworths. It found that some zero-hours staff questioned whether the company really valued their contribution when they were employed for only a few hours a week and that the "flexible pool of labour" was often quite inflexible, because people would be unavailable for work owing to other commitments, usually doing similar work with other retailers. In addition, Woolworths said that it was difficult to train such workers in a consistent way, while managers found that communicating effectively with zero-hours staff also posed problems (see case study five).

    Employers may also find that it is difficult to recruit and retain staff when the latter are faced with the insecure conditions and uncertain hours that typify zero-hours working. This was a problem for both retail and finance employers in the 1995 IRS study of women's employment in these sectors.41 Alliance & Leicester moved away from zero hours in favour of annualised hours and other flexible working arrangements (see case study one).

    In the UK, many hospitals are experiencing difficulties in recruiting both full-time and bank nursing staff. In a partial response to this problem, Kingston Hospitals NHS Trust now offers its bank employees the same holiday and maternity leave entitlements and sick pay and redundancy benefits as full-time staff on a pro-rata basis.42

    Disadvantages of flexible part-time working

    Employers who opt for flexible part-time contracts may face similar problems to those faced by organisations using zero hours - high turnover and low morale and commitment. An example from the 1995 IRS study of women's employment in the retail and finance sectors illustrates the potential problems for those who employ people in variable part-time hours patterns. A retailer had always used Saturday part-timers but, until two-and-a-half years before the research was conducted, weekday sales staff had all been full-time.43 This was subsequently changed and all sales assistants were made part-time and all full-time contracts were abolished. Initially, the sales force was divided into a "core" group, working 10 hours and over a week, and "key-staff", employed to work less than 10 hours. Existing staff either took redundancy or reduced their hours to between 16 and 25 a week. In addition, a large number of staff were recruited on nine-hours contracts, with the proviso that they could be asked to work extra hours if the manager required them.

    A staff survey following this change found very low morale levels. There was also a dramatic increase in labour turnover, and the stores encountered problems recruiting staff of a sufficient standard. Consequently, a change of policy occurred at the beginning of 1994, and contracts of over 15 hours (usually 16-20) became the norm. Company policy is now that stores should have 75% core staff - now defined as over 15 hours a week - and 25% key-staff. The company had found that core staff have greater loyalty and more commitment and are of a higher quality than key-time workers.

     

  • Figure 5.1: Defining variable hours arrangements

    Annual hours: the principles

    What are annualised hours?

    The basic principle of annualised hours is that instead of working time being defined in terms of, say, a 39-hour week, working hours are averaged over a whole year, with no distinction made between different elements of non-working time such as holidays, days in lieu of bank holidays worked, or rest periods.

    How are they calculated?

    A variety of formulae are used in the calculation of annualised hours.

    In its simplest form, the calculation of annual hours is based on the number of weeks in the year multiplied by the number of working hours a week, minus the number of days' holiday and public holidays. For example:

    52.2 weeks X 39 hours = 2,035.8 hours

    less 25 days' holiday at 39 hours ÷ 5 days = 195 hours

    less 8 public holidays at 39 hours ÷ 5 days = 62.4 hours

    Total = 1,778.4 hours

    A variation of the formula is to count the annual length of the year as 52.18 weeks in order to provide for leap years. This counts each year as 365.25 days, averaging the number of weeks over a four-year period, and using the formula:

    365.25 days + 7 hours = 52.18 weeks a year.

    It may occur that, as a result of shift arrangements, the total number of rostered hours is less than contracted annualised hours. In this case, the employee owes a certain number of hours to the company (pay-back shifts). Alternatively, if the employee is rostered for more than contractual hours, "banked time" is accumulated to be claimed back by the employee.

    How do they work?

    Most annual hours systems schedule working time (including holidays) at the beginning of the 12-month cycle. There are two main types of arrangements, although many systems contain elements of both:

  • 1. A system that includes weekly hours variability to accommodate longer hours at busy periods and shorter hours when demand is slack; and

  • 2. A shift system that has built-in non-rostered time - eg, rostered hours are less than total annual hours - so that staff can be deployed to cover unforeseen circumstances.

    For example, the 1994 shift rota for the five-crew continuous shift system based on annual hours at Continental Can's Wrexham plant consists of 1,834 contractual hours each year. After basic rostered hours and preventative maintenance hours, the time taken up by shift meetings (one hour per month) and stock checks are deducted, each crew has between 68 and 76 hours each year spare, which are used to cover changes in the rota, such as converting the line to accommodate a different size of can. The company must give four days' notice (minimum) of any changes. The following chart shows how the system operates.

    Continental Can - 1994 shift cycle calculations

    Red crew

    Black crew

    Green crew

    Blue crew

    Orange crew

    Total contract hours

    1,834

    1,834

    1,834

    1,834

    1,834

    Hours in basic rota

    1,728

    1,712

    1,688

    1,704

    1,704

    Preventative maintenance

    24

    36

    60

    36

    36

    Sub-total

    1,752

    1,748

    1,748

    1,740

    1,740

    Contract hours remaining

    82

    86

    86

    94

    94

    Shift meetings

    12

    12

    12

    12

    12

    Contract hours remaining

    70

    74

    74

    82

    82

    Store checks

    6

    6

    6

    Contract hours remaining

    70

    68

    68

    82

    76

    Sources: IRS (1991), "Annualised hours - the concept of the flexible year", Industrial Relations Review and Report 488, May, pp.4-8; Blyton P (1994), "Working hours", in Sisson K (ed) Personnel Management: a comprehensive guide to theory & practice in Britain, p.516; IRS (1995), "A hard day's night", IRS Employment Review 576, January, pp.9-16.

    Zero-hours contracts

    An agreement to employ a person, as and when required, to fill a role, but where there is no commitment to any minimum number of working hours. The approach may involve a flexible register of employees or on-call staff. Zero-hours arrangements provoked public controversy in 1995, when staff at the Glasgow branch of the fast-food chain Burger King were required to clock off during slack periods and were paid only for the hours actually spent serving customers.

    1     Blyton P (1994), "Working hours", in Sisson K (ed), Personnel management: a comprehensive guide to theory and practice in Britain (Blackwell, Oxford), pp.513-514.

    2     Ibid., p.514.

    3     White K (1997), "Using annual hours to support cultural change", Flexible Working, vol 2 (2), January, pp.9-10 and p.23.

    4     Wareing A (1992), "Working arrangements and patterns of working hours in Britain", Employment Gazette, March, pp.88-100; Watson G (1994), "The flexible workforce and patterns of working hours in the UK", Employment Gazette, July, pp.242-244; Labour Market Trends, December 1997, LFS63.

    5     Flexible working practices survey report, Alan Jones & Associates (Monmouth, Gwent); Flexible working in local government, New Ways to Work (London).

    6     White, see note 3, above.

    7     IRS (1996), "Parcelforce: CWU deal unwrapped", Pay and Benefits Bulletin 391, January, pp.12-13.

    8     Blyton, see note 1, above.

    9     Labour Market Trends, November 1995.

    10    Neathey F and Hurstfield J (1995), Flexibility in practice: women's employment and pay in retail and finance (Industrial Relations Services).

    11    IRS (1996), "Flexible working hours - a survey of practice', IRS Employment Review 608, pp.4-10.

    12    IRS (1995), "Customer service drive brings new working time patterns at BT", IRS Employment Review 579, March, pp.13-16.

    13    IRS (1996), 'Competition in gas industry on the front burner", Pay and Benefits Bulletin 400, May, pp.9-10.

    14    IRS, see note 11, above.

    15    Incomes Data Services (1996), "Annual hours", IDS Study 604, June.

    16    White, see note 3, above.

    17    Hutchinson S (1993), "Annual hours working in the UK", Issues in people management 5 (Institute of Personnel Management).

    18    Ibid.

    19    Ibid.

    20    White, see note 3, above.

    21    IRS (1993), "Annual hours working and harmonisation at Rockwell Glass", Industrial Relations Review and Report 543, August, pp.12-16.

    22    IRS (1995), "Annualised hours at Northallerton NHS Trust", IRS Employment Review 575, January, pp.12-16.

    23    IRS (1991), "Annualised hours - the concept of the flexible year", Industrial Relations Review and Report 488, May, pp.4-8.

    24    "Bank accounts for staff's views over annual hours", Personnel Today, 27 November 1997.

    25    IRS, see note 11, above.

    26    Cave K (1997), "Close to the core: zero hours working surveyed", Flexible Working, vol 2 (3), March, pp.21-23.

    27    Neathey and Hurstfield, see note 10, above.

    28    Ibid., p.45.

    29    Ibid.

    30    IRS (1993), "'Key-time' working at Allied Maples Group", Industrial Relations Review and Report 546, October, pp.12-16.

    31    Ibid., p.14.

    32    Neathey and Hurstfield, see note 10, above.

    33    IRS (1996), "Flexible workers on call at Tesco", IRS Employment Review 620, November, p.13-16.

    34    Hutchinson, see note 17, above.

    35    White, see note 3, above.

    36    Hutchinson, see note 17, above.

    37    IRS, see note 22, above.

    38    Hutchinson, see note 17, above.

    39    IRS, see note 23, above

    40    Cave, see note 26, above

    41    Neathey and Hurstfield, see note 10, above.

    42    Personnel Today, 30 October 1997.

    43    Neathey and Hurstfield, see note 10, above.