McDonald’s has announced that as of Monday evening it will close all 1,270 of their UK based restaurants until further notice. Employing around 135,000 people across the UK, this is going to put a huge amount of people in very difficult circumstances, many of whom are are on zero-hour contracts.
Nando’s, one of the country’s favourite restaurant chains, has also announced mass closures throughout the UK. This comes as the spread of the coronavirus speeds up across the country, with a total of 5,683 confirmed cases recorded as of midday on Monday.
The advice from Prime-Minister Boris Johnson is simply “stay at home”, and the closure of restaurants, bars, and cafes will hopefully have the effect of limiting people’s movements.
Whilst many workers in the food and beverage industry now face lengthy absences from work, they are hoping that wages will still be paid in accordance with the announcement by the chancellor Rishi Sunak three days ago.
Whilst the multi-billion pound promise to pay people’s wages will benefit millions of people and save thousands of businesses from going bankrupt, those on zero-hour contracts, which is common in food and beverage, are still not sure how the policy relates to them. With no fixed hours, they cannot claim a regular monthly salary and are worried they may not be part of the scheme.
Along with the self-employed and freelance workers, those on zero-hour contracts will be hoping for more clarity in the coming days. Let’s hope they get it soon!
THINK LIKE AN ECONOMIST!
- What type of unemployment could those on zero-hour contracts be facing?
- Discuss the reasons why people might choose to work zero-hour contracts.
- Evaluate the long-term impact of the outbreak of the coronavirus on the food and beverage industry in the UK.
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