Fire and Rehire Tactics

Esther McVey Excerpts

Wednesday 15th June 2022 Westminster Hall

[Several hon. Members rose—]

[Esther McVey (in the Chair)]

Order. As you all know, we will need to get to the Front-Bench speakers a little over half an hour before the end of the debate, at around 3.28 pm, but I will not put a limit on speeches as it does not seem that we need one.

--- Later in debate ---

[Justin Madders]

Tempted as I am to get into the niceties of devolved powers, what I will say instead is that the people of this entire country need a strong Labour Government that will bring back employment rights for everyone.

As the hon. Gentleman mentioned, the scrapping of the employment Bill, which has been promised by the Government on no fewer than 20 occasions, is symptomatic of a Government that do not see this issue as a priority. Does the Minister accept that a code of practice, even a statutory one, will not be of any use if it comes after the event? Does he accept that it would simply be another factor for employers to bake into their calculations? And does he agree that it will not stop fire and rehire happening again in the future?

I ask all those who oppose the Bill introduced by my hon. Friend the Member for Brent North, which was unfortunately blocked, to put themselves in the shoes of one of their constituents. That constituent might have worked for the same company for 10, 20 or even 30 years, giving loyal service and going the extra mile, and only asking in return for stable terms and conditions that remain constant throughout. But then, out of the blue, even though their job has not changed and they have performed their duties well for their employer, who is still turning a healthy profit, they are told that their contract is ending and that, if they want to remain employed by the company, they will have to work the same number of hours, doing exactly the same job, for 20% less pay than they receive now—and if they refuse, they are out of the door without even a redundancy payment. Is that not an injustice? Is that not an affront to the respect that someone who has served their employer for so long deserves? Is that not something that we in this place ought to be looking to end?

We often talk about the cost of living crisis and how wages have not kept pace with inflation for well over a decade now. The obscenity of fire and rehire makes that difficult situation even worse. We know that if someone is fired and rehired and gets a 20% reduction in their pay, they will not be able to get a 20% reduction in their mortgage or their rent, or in their other household bills. What does the Minister say to people who find themselves in that situation? What should they do?

The destructive combination of weak employment laws, opportunistic employers and an indifferent Government is currently allowing hard-won benefits to be stripped away, with a descent into weakening terms and conditions. It is a race to the bottom, which I am afraid has been accelerated by coronavirus. It is time that race came to an end. The Government say that they are on the side of ordinary working people and that they want to level up the country, but how can they do that if time and again we are shown that an employment contract is not worth the paper it is written on?

I wonder sometimes about the level of understanding in the Government about how modern workplaces operate. Some recent examples of their ignorance include starting a petition asking the Leader of the Opposition to call off industrial action commenced by an independent trade union; leaving notes on civil servants’ desks asking when they will come back in—Cabinet Ministers think that if someone if working from home, they are not really working—and, of course, the obscenity of security staff and cleaners in Downing Street being abused for pointing out that lawbreaking was going on. When it comes to employment rights, this Government are as clueless as they are vindictive.

We do not have to accept that this is the norm. We can return stability and respect to the workplace, we can reward loyalty, and we can end the cruel lottery of fire and rehire. We just need a Government committed to doing those things. But let us not stop at ending fire and rehire. I want to see this country becoming a leader in employment protections, not lagging behind the likes of Kosovo, Estonia and Mexico. Let us end the obscenity of British workers being easier and cheaper to get rid of than workers in just about all the rest of western Europe. Let us end the disgrace of this country always being at the head of the queue when a multinational is looking to make redundancies.

Let us end the mindset that as long as someone has a job, that is job done. It is not—security, prosperity and stability are all under threat from this lopsided legal framework. It is in all our interests that we have strong workforce protections. We grow as an economy and a country when we have secure employment. It is one of the cornerstones of a civilised society, and if this Government do not want to legislate to make that happen, then they should step aside for a Government who do want to.

[Esther McVey (in the Chair)]

Before I call the Minister, I remind him that the hon. Member for Slough (Mr Dhesi) will need a couple of minutes to wind up at the end.