Fire and Rehire Tactics

Christian Wakeford Excerpts

Wednesday 15th June 2022 Westminster Hall

[Mr Dhesi]

The hon. Gentleman makes an excellent point, and that is why it is important that we have skilled workers who need be regarded for their loyalty to the job, and for their competence.

Call me cynical, but it seems that certain policies can be expedited over others, such as the Home Office having no difficulty in swiftly implementing the inhumane Rwanda policy or the Government pushing to break international law, or selling off the popular and successful Channel 4.

[Christian Wakeford (Bury South) (Lab)]

Does my hon. Friend not think that part of the problem for the Government of the moment is that, if they try to expedite fire and rehire while we are trying to fire the current Prime Minister, they will unfortunately have to rehire him on worse terms and we will all suffer?

[Mr Dhesi]

My hon. Friend makes an excellent point and with a great deal of wit.

While the Government can do all the things that I have outlined, it seems that supporting workers’ rights has been abandoned at the bottom of the pile. It is not a priority for this Government, who seem to value their own job security above that of the average working person.

What does the Prime Minister expect from our great British workforce? Under this Government, are workers just meant to put up and shut up about their inadequate pay, conditions and benefits, without having adequate legal protections? Thankfully, due to the excellent work of unions such as Unite, Unison, GMB, the Transport Salaried Staffs Association or TSSA, the National Union of Rail, Maritime and Transport Workers or RMT, ASLEF and others, there is some support and respite from fire and rehire for employees. However, without legislation, I fear that this practice will persist.

It is clear that we need to outlaw fire and rehire. We do not need some sort of consultation but to outlaw it and urgently introduce a Bill to strengthen workers’ rights. Lip service will not stop fire and rehire; an effective ban will. However, Government plans on a statutory code fall woefully short and even then the Government are struggling to implement the bare minimum required. Current Government proposals would mean that the practice of fire and rehire remains legal, consultation procedures would not be improved and workers would continue to be dismissed for not agreeing to an inferior contract. Quite simply, all that that will achieve is to increase a company’s financial calculation before it uses fire and rehire tactics regardless.

We already know that the Government plans do not work. P&O Ferries calculated that it was financially worthwhile foregoing consultations, despite knowing that they were necessary, before cutting almost 800 jobs and replacing those employees with agency workers. P&O’s chief executive said:

“I would make this decision again, I’m afraid.”

Unscrupulous employers are acting without consequence. Companies have examined our current legislation, deemed that it is not fit for purpose and then exploited it. Failing to turn the tide now will be a green light for other employers to behave in exactly the same way.

P&O Ferries did not act in a vacuum. Its decision came after immoral fire and rehire tactics were used persistently throughout the pandemic. British Airways and other such companies were called “a national disgrace” by the Transport Committee for their actions, which put thousands of jobs at risk and led to my inbox being flooded by messages from concerned Slough constituents who work at Heathrow airport. Employees who had worked for BA for decades were threatened with being cast off at the beginning of a global pandemic, which is unforgivable. It was only due to the excellent work of unions on behalf of the workers involved that deals were reached and jobs were saved, but it should not have had to come to that.

British Gas, which is owned by Centrica, threatened the livelihoods of 5,000 employees, using the threat of coronavirus as a smokescreen to act unethically against many of my Slough constituents, and I know that many other right hon. and hon. Members’ constituents were also affected. Before an agreement was reached that brought the dispute to an end, there were 44 days of strike action and 500 workers were dismissed. Again, without the unions thousands more workers would have been left without a job and without representation.

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[Christian Wakeford (Bury South) (Lab)]

It is a pleasure to serve under your chairmanship, Ms McVey. Fire and rehire is wrong. I know it, everyone here knows it, workers know it, the Government know it, the Prime Minister knows it, and the Minister knows it, too.

Fire and rehire is unfair. It levels down; it is about deregulation and a continual rolling back of workers’ rights and an attack on trade unions. There is not a constituency in the land in which this pernicious and cruel practice has not happened or is not on the verge of happening, with worse terms and conditions held over workers’ heads as a constant threat, keeping them awake at night.

The vile way in which P&O workers were treated recently, handcuffed by private security and marched from their workplace, left me disgusted and angry. The route we are heading in with this Government and workers’ rights means we need to take this seriously. Whether it be fire and rehire, zero-hours contracts or the constant insecurity of those in the workplace, the Government do not care about the plight of working people. If they did, they would have legislated against this damaging practice already and, at the very least, have produced the long-awaited and 20-times promised employment Bill.

If any of my former Conservative colleagues were here, they could correct me, but I hope they agree that the practice makes no sense from economic stance. If we do not stop this abhorrent practice, rogue bosses at firms affecting my constituents, such as British Gas, British Airways, Go North West buses and Asda, aiming to save a few quid with fire and rehire will leave us all to pay. If people end up on lower wages, they will have to claim more social security, such as universal credit. Instead of companies paying for redundancies, it ends with the taxpayer bailing out the companies.

As much as the Government like to preach about work being the best way out of poverty, that cannot be when the majority of people claiming benefits are in work. There is only one winner with fire and rehire, and it is not the workers or their families. It is greedy bosses who continually ride roughshod over working people.

I pay tribute to my hon. Friend the Member for Brent North (Barry Gardiner) for his campaign against this practice with his private Member’s Bill last year, which I supported on many different platforms. That Bill was regrettably not taken up by the Government. On a wider note, I would also like to pay tribute to my hon. Friend the Member for Middlesbrough (Andy McDonald) for the great work he did on the green paper for a new deal for working people, which will go a huge way to forming a transforming Labour Government that will, once and for all, stop fire and rehire.

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to speak in this debate and to follow the hon. Member for Slough (Mr Dhesi), and indeed other Members who have spoken. I feel strongly about this issue, which I have spoken about before. There is nobody in Westminster Hall who does not have deep respect for the Minister, because he always tries to respond to our queries. This issue strikes at the core of employment, so I am keen to hear what he can say to reassure us on some of the things I will speak about.

This is a topical issue that causes many employees across the UK immense stress. There was widespread use of the fire and rehire tactic during the covid pandemic, as there was a need to alter working ways to adapt to the situation. Many employers have used the strategy to their success, but a majority see it as highly ineffective and unfair. In his significant contribution, the hon. Member for Slough mentioned P&O Ferries. When the P&O workers were fired, the agency staff that came in did not address health and safety issues. That is not to be disrespectful to the agency staff, but there are certain standards that must be met, and they were not met. The hon. Member for Bury South (Christian Wakeford) is absolutely right that it was despicable to come on to the ferry in Larne and lead people off, some of them in handcuffs. That really angered me. I could not believe that any company anywhere could resort to such tactics.

It got worse. Even after some staff were trained in health and safety issues, what happened in the Irish sea? The engines of the ferry from Larne to Stranraer went off, and it floated in the middle of one of the busiest sea lanes around Britain for more than two hours until the staff could get the engine restarted. That is another example of the potential safety impact of fire and rehire tactics.

I want to put on the record how strongly I feel for those who lost their jobs. The Minister knows all about this, because I brought it up in a question on the day that it happened, as the news broke that Thursday. He answered my question very helpfully and said that he was trying to address the issue, and I think he has shown a willingness to do so. It is important to note that this process is not unlawful, as the hon. Member for Glasgow East (David Linden) said, but it does involve dismissals. Many employers have been taken to court for unfair dismissal, and the technique has the potential to turn extremely nasty. If I was one of those workers, I would be pretty narked, to use an Ulster Scotsism.

A survey of workers by the TUC in November found that, since March 2020, 9% of workers had been told to reapply for their jobs on worse terms and conditions. Fire and rehire is becoming a common technique for both large and small businesses. The Government have said that it should not be used as a negotiation technique, but that it should not be made illegal. I follow others in asking the Minister whether he would be prepared to consider introducing legislation on fire and rehire, which has been used to the detriment of workers in this great United Kingdom of Great Britain and Northern Ireland. We need clarity and we need legislation that brings change.

Back home in Northern Ireland, this technique has been used by employers amidst the pandemic. Almost one in five 18 to 24-year olds—20% of that workforce—have said that their employer tried to rehire them on inferior terms during the pandemic. Black and ethnic minority workers are almost twice as likely as white workers to face fire and rehire policies. If such policies are detrimental to somebody because of their skin, their religion or whatever it may be, that is wrong, and I underline my request for the Government to introduce legislation to enforce that. As the unions have stated, one in four workers—25%—said that they had experienced a downgrading of employment terms and conditions as a result of fire and rehire.

We have seen the fire and rehire technique causing major problems, for instance in British Gas. Around 7,000 British Gas engineers staged 44 days of strike action after the company threatened to sack them if they did not sign up to detrimental changes to their terms and conditions. Why would they sign up to that? I do not understand how a company can just say to people, “Tell you what, we are just going to change all your terms and conditions, and you need to sign this or you are away.” Perhaps I am old-fashioned and see right and wrong in very simplistic terms, but I see that as wrong. We need to protect the workers. I am not putting the Minister on the spot—forgive me for being fairly direct about this—but we need legislation that does so.

[Christian Wakeford]

I thank the hon. Gentleman—indeed, my hon. Friend in this instance—for giving way. Part of the problem is that at the moment the Government insist on stronger regulation and guidance, but that is clearly not the solution. That did not and would not help the workers at P&O, whose chief executive admitted that he knew he was breaking the law and said he would do so again. Does the hon. Gentleman agree that guidance is not the solution; it has to be legislation?

[Jim Shannon]

I thank my colleague the hon. Gentleman for his intervention. I agree with that, sincerely in my heart. As I said earlier, the Government have said that fire and rehire should not be used as a negotiation technique, but that it should also not be make illegal. Well, that is a legislative change that the hon. Member for Bury South wants to see, as well as everyone who has spoken and everyone who will speak afterwards. I want to see that legislative change in place as soon possible.

It is essential that an environment is created whereby people enjoy their work. I am very privileged to do a job that I always wished to do, but never for one second did I think that I, a wee boy from Ballywalter, would actually be here, so I am fortunate. People need to enjoy their work if they are to work hard and make a contribution to how their firm progresses. If staff are unsettled and unhappy in their work, for whatever reason, there is an onus on the employer to work harder to make them happy.

Moreover, employers rely on workers to fulfil goals and create successes, hence the need to prioritise their needs and not be dictated to. If someone wants their firm to be successful and do well, they need a happy workforce, and vice versa. I have six girls who work with me in my two offices, and I can say in all honestly that they seem fairly happy, so maybe this employer is treating them the right way. I understand how important it is to motivate staff and keep them happy.

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[Paul Scully]

I said, “in parliamentary time.” It will be when parliamentary time allows. We have a manifesto commitment to delivering these measures in this Parliament. The Queen’s Speech relates to this Session, not this Parliament. Clearly, it would be neat to have the measures in a single legislative vehicle, but I think we would all find that workers up and down the country are interested in the net result—what happens to them in their daily life. We are task-focused, rather than process-focused.

[Christian Wakeford]

There is a bit of a debate now about whether there will be an employment Bill or an improvement to employment rights. The main question is: when will it be delivered?

[Paul Scully]

As I say, our manifesto commitments remain. The hon. Gentleman will see employment measures come forward both in this Session and before the end of the Parliament, because we want to act. We have pledged to do many things, and we absolutely want to stick to those pledges.

The hon. Member for Glasgow East talked about productivity. I will not comment on individual workers, but there is no doubt that companies in the UK are less productive than companies elsewhere in the G7, so we need to work on our productivity as a nation, and as businesses. That involves a whole raft of things, including working practices, the relationship between employers and employees, and infrastructure. If we raised our productivity to German levels, it is estimated that we could add £100 billion to our economy. Those are pretty substantial gains, if we can get there.