Concerns raised over use of zero hour contracts at Zip World

Emily Price 

Serious concerns have been raised about working conditions at a prominent Welsh adventure company set to receive over £6 million in government funding.

A new public interest report on wages and conditions at Zip World revealed that in 2024 between 85 and 93% of workers at the firm’s Penrhyn and Llechwedd sites were on zero hour contracts.

The outdoor adventure company has several sites across Wales and England including the world’s fastest zip line – Velocity – at Penrhyn Quarry in Bethesda.

The new report carried out by research agency Foundational Economy Research Limited (FERL) concluded that Zip World’s use of zero hour contracts raises urgent public interest questions about state assistance for the company.

Deal

In January, the outdoor adventure giant was sold in a deal that valued the business at more than £100m.

A few months later, it was awarded a £6.2 million cash injection as part of the North Wales Growth Deal.

The deal represents a £1 billion joint investment by the UK and Welsh Governments aimed at transforming the north Wales economy and boosting jobs in the region.

The collaborative effort is led by the North Wales Economic Ambition Board in partnership with local authorities.

Zip World will use its multi-million pound cash award to fund its “Responsible Adventure” growth project over the next two years – an initiative focused on promoting sustainable tourism in north Wales.

But researchers at FERL warn that Zip World’s employment practices are undermining Welsh speaking communities.

‘Fair work’

Their report states: “The company has industry leading profitability while its workforce has low and irregular incomes which make it harder for families to budget and undermines Welsh speaking communities.

“The issue is the absence of joined up policy. Zip World’s employment practices are directly contrary to Welsh Government’s fair work policy, but Zip World’s request for £6 million of project assistance goes to the Economic Ambition Board which chooses projects on criteria that include number of jobs created without regard for quality.”

The report goes on to say: “Zip World claims that zero hours contracts are a matter of worker preference and lifestyle choice.

“But, in the slate valleys as everywhere else, workers with family responsibilities need a steady, sizeable income from full time jobs or part time jobs with a decent number of predictable family friendly hours.

“Zero hours or fluctuating part time hours make budgeting and caring difficult. When Zip World is asking for millions in public assistance from the north Wales Economic Ambition Board, its employment practices could and should therefore be a matter for public policy.”

‘Decent wages’

It comes after the action research agency published a list of six reasons why Zip World should never have been awarded millions of pounds in public funds.

FERL says Zip World could “easily afford to completely fund all its own expansion investment” without grant funding from the government.

The research agency argued that the company delivers “no useful service for local communities” and accused Zip World of exaggerating the spending it draws in to the north Wales economy.

Although Zip World initially indicated they would provide Nation.Cymru with a response to the FERL’s report – the firm later backtracked and said they did not wish to comment.

Councillor Beca Roberts, who represents the ward where Zip World’s Penrhyn operation is based says public money should only be used to fund “decent wages and secure jobs.”

She said: “When a company is asking for millions in public support, it has a duty to the people and communities it serves.

“My constituents deserve better than zero- hours contracts and unpredictable, low-paid work.

“We must insist that public money only supports businesses that commit to decent wages and secure jobs.

“Fair work is not a luxury — it’s a necessity for families trying to make ends meet in Gwynedd.

“All this shows how Welsh Government policy is developed in silos so that we do not have joined up policies.

“Zip World’s employment practices clearly fall short of Welsh Government’s fair work policy.

“Yet the Economic Ambition Board, half funded by Welsh Government, chooses projects on the basis of jobs created without regard to job quality.”

Benefits

She added: “The Board can attach supplementary conditions before approving the Responsible Adventure project.

“It has already asked Zip World to provide community social benefits. It can and should go further.

“Public funding for Zip World must now be made conditional on measurable improvements in worker contracts at the Llechwedd and Penrhyn sites.”

The Welsh Government says that while employment law remains a reserved matter, it does not support the “unfair use of zero-hour contracts” and wants to see employers “offer guaranteed hours where possible”.

A spokesperson added: “We welcome the UK Government’s proposed reforms in the Employment Rights Bill, including measures that would require employers to offer guaranteed hours to eligible workers.”

The flagship Bill aims to end one-sided flexibility by giving workers a right to guaranteed hours reflecting their work pattern and a right to reasonable notice of shifts and compensation for last-minute cancellations.

A representative from Ambition North Wales said: “Ambition north Wales is committed to building a more vibrant, sustainable and resilient economy in north Wales.

“Our investments through the Growth Deal are targeted across five key programmes to build on our strengths, to boost productivity while tackling long-term challenges and economic barriers to deliver inclusive growth.

“All projects are subject to a robust assurance and approval process including a business case produced in line with HM Treasury’s Green Book Guidance and are required to demonstrate how they deliver added value to the region.”