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You are here: Home > Current Topics > At your Leisure > 10 April 2006 |
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Key DriversWhat were the key forces driving this change? The forces can best be summarised as follows:
RegulatoryLicensing laws have changed to create a more liberal, continental style system. For more on this, please see the At Your Leisure 'Calling Time on The Licensing Laws'. The Sunday Trading Act (1994) allowed shops in England and Wales to open on Sunday, with the restriction that large shops (with floor area in excess of 280m2/3000 ft2), could only open for six continuous hours between 10 a.m. and 6 p.m. (most supermarkets open between 10 a.m. and 4 p.m.). The market signal given by the change in law in 1994, taken together with greater restrictions on new supermarket construction in out-of-town locations, persuaded large supermarket retailers to target the convenience store sector for the next phase of their expansion. Through a rash of takeovers, the big players in food retailing, especially Tesco, took a grip on this sector. If the regulations allowed only small shops to open when they wanted, then the major supermarket retailers would find ways to behave as if they were smaller players. This they did by:
EconomicIn the past 20 or 30 years, Britain has taken on some of the characteristics of the US-style '24/7' society. Taken together with changes to the regulatory framework discussed above, this has created a far more liberalised environment for consumers. As incomes have continued to rise throughout this period, people have become used to better access to services that were denied them in the past. TechnologicalGreater choice in entertainment services has occurred as free and subscription TV has expanded. The growth of broadband capacity in the UK has contributed to the expansion of leisure services. SocialMeanwhile, British society has become more atomised, with greater incidence of divorce, family breakdown and single parenthood. In this context of great social, economic and technological change, the UK Government has begun to consider if it is time for the restrictions that remain on Sunday trading to be relaxed. The Department for Trade and Industry is to carry out a study into this question. |
The key interests of the DTI are:
Some observers criticised the study for its lack of an explicit reference to the social effects of trading hours' liberalisation. In particular, a cross-party group of parliamentarians were concerned about a lack of emphasis on the social effects on individuals, families and children, local communities and society as a whole.
In order to address this need, the group of parliamentarians worked closely with the Relationships Foundation to produce a report, bringing together the evidence given by a range of organisations and individuals with specialist experience and interests.
The classical liberal economic view is aired by the following comment from the National Consumers' Council:
'There will be no social impact but there will be significant social benefits from consumers having greater freedom to run their own lives, making 'informed choices, rather than using legislation to make judgements about how individuals choose to organise their relationships and spend their time.'
This contrasts strongly with the following comment from the British Shops and Stores Association, opposing deregulation on social grounds:
'In an environment of increasing single parent families and the problems of child truancy, this situation will do nothing to enhance the stability of the family unit'.
Tesco strongly believe that this is the case. The report notes Tesco's comments as follows:
'Working on Sundays is popular with many staff, particularly students and single parents, who have easier access to carers at weekends.'
On the other hand, the shop workers' union, Usdaw, reports that surveys of its members indicate that 92% of them are against longer Sunday trading hours. They also say that 60% of staff caring for children or elderly relatives struggle to find suitable care on Sundays, if they work on that day. Morrisons, the supermarket retailer, echoes Usdaw's findings.
As might be imagined, Usdaw and the Keep Sunday Special pressure group believe there is little or no evidence that the public really wants longer Sunday shopping hours. In addition, the Association of Convenience Stores echoes this view - perhaps in defence of their members, in the face of competition from the major players in the market.
On the part of the large supermarket retailers, there is no consensus; Tesco think there is significant demand from customers for longer hours on a Sunday, but Sainsbury's do not agree.
The Federation of Small Businesses states that between 2000 and 2004, 7337 independent retailers shut down. The report argues that this indicates that the protection offered by the 1994 Act to small traders has not worked.
Friends of the Earth say that small shops support the local economy by sourcing their supplies locally. They cite the results of a survey carried out on their behalf which indicated that 94% of these firms source from within a 30-mile radius.
In addition, FoE argue that small business creates a real range of small businesses in communities. This diversity is one aspect of a thriving community which would be lost if further ground was given up to the major players in the retail industry.
The loss of community is made worse by the impact of Sunday trading on voluntary groups. Community groups, sporting clubs and political organisations often meet on Sundays and would suffer as a result.
Debates rage about whether increased workloads on weekends would make it more difficult for families to spend time together. Copyright: Tomasz Pukalski, stock.xchng.
Communities would also be affected by the extra traffic generated by additional Sunday trading hours, the pollution and congestion that would also result.
The 1994 Act contained some employment protection measures, such as the requirement that staff should not be obliged to work on Sundays.
Tesco states that they uphold this condition; Sunday working is, they say, optional, but there is some evidence to the contrary:
The report highlights the negative effects of longer working hours on individual workers. This is not the first time that the spotlight has been shone on UK working practices. The TUC has a Working Time campaign and the EU's Working Time Directive was designed to harmonise working hours across Europe.
The Relationships Foundation report runs through the negative impact that overwork can have: stress, physical and mental illness, relationship strain, and burn out can all pose a major threat. There is a greater danger to non-managerial workers and those not employed in the professions, who are more likely to work on weekends.
The impact on children has already been touched on, but the report also raises the issues of those with elderly, disabled and terminally ill relatives who have far fewer options (even than those with children) to arrange alternative care.
The pressure group 'Keep Time for Children' stress that couples need time together to sustain their relationships. This is particularly important given that the average UK couple has 15 minutes per day free social time with each other.
Tesco believes that the current restrictions affect the freedom of their staff to work the sessions that attract premium rates.
The point here is that in the past, if you worked on a weekend, you would be paid at premium rates. Work on a Saturday and you might have received time and a half (your hourly rate plus 50%); work Sundays and you could get double time (twice your hourly rate).
In the Relationships Foundation report, the TUC noted that if Sunday trading hours were extended, one effect would be to erode premium rates. Usdaw backs this up, noting that Sunday premiums are already being cut. Most shop workers, they say, are being paid time and a half at most. If hours were extended, wage bills will grow and more premiums will be abolished. Supermarket firm Morrisons supports Usdaw's position.
The Relationships Foundation report also addresses the economic impact of longer Sunday trading hours. The report points to the danger of low productivity that could be an outcome of the deregulation. In World War 2, the report says, Britain operated a seven-day working week in order to increase output. However, it was found that productivity in fact fell, with less output being produced in seven days than in six.
It appears from studying the report that Sunday remains a special day in England and Wales. You can earn more by working on a Sunday. You can carry out certain community-related activities on a Sunday. You can even go shopping on a Sunday, if you wish.
But it seems clear that if Sunday trading restrictions were relaxed, there would be no going back: Sunday as a separate, special day would cease to be different from any other day of the week.
What emerges from the debate is that there is a clash between the commercial needs of big business, some of whom claim that regulation is a denial of individual freedom; and the social and community needs of people everywhere. It should be fascinating to see which view wins the day.
View larger version of the mind map.
