Network Rail is encouraging suppliers to reduce zero-hour contracts and to increase permanent employees who will be employed to work on behalf of Network Rail under its new labour contracts.
The owner, operator and developer of Britain’s railway infrastructure says as part of efforts to encourage suppliers it is moving from zero-value commitment contracts to annual commitment.
A spokesman said: “That will enable suppliers to invest in permanent labour resources (including training) and technology to improve safety and reduce fatigue.
“Our sourcing strategy aims to reduce the levels of fatgue and ‘no shows’ by encouraging the use of reliable employment contracts, whilst noting that, in some circumstances, the use of well managed ‘zero hours’ contracts can be beneficial to both the worker and contractor.”
The annual commitment, based on the annual volume forecast, allows the suppliers to on-board a higher percentage of directly employed staff, thereby reducing zero-hour contracts.
In terms of effective fatigue management and to encourage suppliers to reduce employees on zero-hour contracts, Network Rail has included robust key performance indicators to monitor and manage performance in these areas.
Performance against the whole suite of indicators drives the volumes it commits to providers, i.e. the annual level of commitment is dependent on achieving the necessary compliance.
The spokesman continues: “We have asked our bidders to provide details (as part of their tender submission) of the per centage of employees who will be permanently employed to minimise the use of zero-hour contracts.
“We have also asked for the bidders to demonstrate their commitment to reducing zero-hour contracts and that zero-hour contracts will only be utilised where they are beneficial to the individual.
“This information shared by bidders will be contracted into the KPI measure (for successful suppliers) and will be measured and audited. The contract then enables Network Rail to amend this target so that, year-on-year, we will see a decrease in the number of people employed on zero-hour contracts.”
The contract also includes ‘flow down’ clauses which the primary vendor will need to pass on to Tier 2 and 3 suppliers.
The spokesman said: “Ultimately companies are responsible for their own employment practices but we hope the steps we’re taking will result in a reduction in the use of zero-hour contracts throughout the supply chain.
“In addition to this our fatigue management standard has been revised and strengthened and we have also created readily available briefing material to support our suppliers and their employees.”
Photo credit: Network Rail
