Fire and Rehire

Imran Hussain Excerpts

Tuesday 27th April 2021 Westminster Hall

[Imran Hussain (Bradford East) (Lab)]

It is, of course, a pleasure to serve with you in the Chair, Mrs Murray. I declare my interest as a member of Unite, GMB and Unison.

I join other hon. Members in thanking my hon. Friend the Member for Jarrow (Kate Osborne) for securing this important debate on fire and rehire tactics and for the timely manner in which she has done so, with the outrageous firing of hundreds of British Gas employees earlier this month, just because they refused to be bullied by management into signing contracts that put them on worse pay, and worse terms and conditions. My hon. Friend spoke passionately about that case and the abusive bullying behaviour of British Gas’s management. She made a sound contribution that delivered a strong defence of workers’ rights and the protections that should be afforded to them, but which sadly this Government have denied them. My only regret is that we are having to have this debate following this mass firing at British Gas because the Government would not step in when they should have properly done so.

I thank my hon. Friends for their passionate contributions. Let us be honest: the point has been made that it is only Members on the Opposition side who have contributed because the Government could not even convince their own Back Benchers to turn up to defend the fire and rehire tactics that have become endemic on their watch. There is not only the cases of their own constituents who have faced fire and rehire tactics, but the use of these tactics by major companies that have continued to make a profit throughout the pandemic.

We must remember that fire and rehire tactics are not a new phenomenon, a point that has been made in this debate. They had been around long before the coronavirus pandemic. However, the increasingly precarious nature of our economy and the Government’s refusal to do anything about it, along with the uncertainty created by the pandemic, have given unscrupulous employers the cover they need. Let us be clear: the employers making use of these frankly deplorable tactics are unscrupulous—there are simply no two ways about it.

Under the threat of permanent dismissal at a time when the jobs market could not be more challenging, these unscrupulous employers are bullying their staff into signing away their original contract. They are bullying them into signing a replacement contract where pay is lower, rights are weaker and conditions less favourable, and they are shoving those inferior contracts down the throats of their workers, who know full well that they cannot refuse without being fired for good, as we saw at British Gas.

Despite that despicable behaviour, and the fact that such shameful tactics amount to nothing more than legalised blackmail of staff by employers, fire and rehire inexplicably remains perfectly legal under the Government, and big businesses such as Tesco and the coffee giant Douwe Egberts, which have seen rising profits during the lockdown, are continuing shamelessly to use them.

As a result, those who cannot stand up to their employers and have to begrudgingly accept the new contracts face incredible hardship, going from a job that often comfortably supported them and their families to now being forced to rely on food banks, handouts and social security to make ends meet. Indeed, we all saw the heart-breaking stories during the industrial action taken by GMB members at British Gas where engineers made it clear that they were not striking for themselves but for the young children they needed to support. Fire and rehire tactics do not just leave workers worse off; they leave their families worse off too.

However, fire and rehire tactics are not just bad for working people, who are told to work harder but at the same time paid less; they are bad for our economy too. By being able to change contracts on a whim, fire and rehire tactics are allowing bad employers to thrive and get ahead, cutting wages even at a time when many of them are making bumper profits because of the lockdown. As a result, good employers that look after their staff, pay them good wages and offer favourable conditions are being squeezed out, unable to compete with the bad employers. That is hardly the positive example of levelling up or building back better, as the Prime Minister has pledged time and again. That is why the Labour party, the trade unions and working people up and down the country have been calling on the Government to step in and act, to deliver the legislation that will bring a final, definitive end to the use of fire and rehire tactics for good, just as has been done in Ireland and Spain, as we have heard.

Instead of outlawing fire and rehire, all the Government have been able to offer are warm words and consultation—a point that has been made by a number of hon. Members. Warm words, however, do not pay bills, keep roofs over people’s head or put food on the table. As we saw at British Gas, warm words do not keep people in employment. The consultation that the Government have commissioned with ACAS still has not been published weeks after reporting back to base, with findings reportedly still being considered. I say to the Minister that this is not difficult. The findings and recommendations of the ACAS consultation are obvious for all: fire and rehire is bad for everyone. The Government should ban it, so why are they dragging their feet and what are they waiting for?

Last week, the Prime Minister spoke of dropping a “legislative bomb” to stop the European football super league, so they can act when they want to. However, he cannot even muster as much as a legislative firecracker to stop fire and rehire. Only last Wednesday, in response to my hon. Friend the Member for Liverpool, Riverside (Kim Johnson) during Prime Minister’s questions, the Prime Minister could not even remember the GMB dispute with British Gas and the mass firing of workers who refused to be bullied. No one should ever try to tell us that this Prime Minister is in touch with working people.

Instead of the Government looking out for employment rights, it has again fallen to trade unions to protect working people and to oppose bully-boy tactics. Unite secured a resolution of the dispute with British Airways and continues to oppose Go North West’s buses plans, and the GMB had a valiant fight to protect jobs and livelihoods at British Gas, but their job is made harder by the fact that the Government will not step in to help them by giving the vital legal backing that they need.

The use of fire-and-rehire tactics by unscrupulous employers is a stain on our economy. The contributions made by hon. Members during this important debate make one thing clear: we cannot just temporarily stop the use of fire-and-rehire tactics during this pandemic; we need to end them for good. To that end, the Government must introduce proper legislation, backed by real enforcement, before it is too late—before we see another big bully-boy employer such as British Gas lay off staff and impose new contracts, dismissing the rest who refuse to be bullied.

The Minister must confirm, as I hope he will and as we have called for, that the Government will bring forward such a measure as a matter of priority in the long-awaited and much-delayed employment Bill in next month’s Queen’s Speech. If he does not give a proper response today and resorts to a wishy-washy one—frankly, a trademark of this Government—the consequences for every worker who has been blackmailed and bullied, every family forced to turn to food banks, and every child forced into poverty, will land firmly at his Government’s doors.

[Mrs Sheryll Murray (in the Chair)]

Minister, will you leave a couple of minutes at the end for the person in charge of the debate to conclude?