Fire and Rehire 2024-05-16
2024-05-16
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Concern about widespread use of 'fire and rehire' practice affecting employees, especially incidents like British Airways trying to sack staff and P&O Ferries unlawfully sacking 786 staff.
I am concerned about the steps being taken with Cabinet colleagues to prevent the use of fire and rehire practices in the transport industry. The TUC found that since 2020, about 10% of all workers have had to reapply for their job due to fire and rehire. British Airways tried to sack 36,000 staff through this practice but was stopped by strike action; Go North West threatened similar actions which were averted; and P&O Ferries unlawfully sacked 786 staff before replacing them with agency workers. I urge the Government to outlaw this practice rather than just issuing best practice guidelines.
The Government published a statutory code of practice on dismissal and re-engagement addressing fire and rehire. This aims to ensure it is only used as a last resort with proper employee consultation and fairness. After the P&O incident, we introduced measures including the Seafarers Wages Act 2023, coming into force this summer, and the seafarer charter which P&O has now committed to.
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Assessment & feedback
Did not provide a specific commitment to outlaw fire and rehire practices in transport industry
Response accuracy
Q2
Partial Answer
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Context
Incidents of fire and rehire practices have occurred in various companies, with British Airways attempting to sack staff and P&O Ferries unlawfully dismissing seafarers.
The TUC has found that since 2020 about 10% of all workers have had to reapply for their job due to fire and rehire practices. In 2020, British Airways tried to sack 36,000 staff through fire and rehire but was stopped by strikes; in 2021, Go North West threatened similar actions which were averted; in 2022, P&O Ferries unlawfully sacked 786 staff before replacing them with agency workers. The Government took no action in these cases.
After the P&O incident, we introduced a range of measures including the Seafarers Wages Act 2023 to ensure minimum wage for seafarers operating in UK waters. The code of practice on dismissal and re-engagement will come into force before summer recess giving workers up to 25% extra compensation if employers do not abide by it.
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Assessment & feedback
Did not provide a specific commitment to outlaw fire and rehire practices in the transport industry
Response accuracy
Q3
Partial Answer
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Context
P&O Ferries admitted to paying seafarers £4.87 an hour, below the UK minimum wage of £11.44 per hour.
The UK's minimum wage is £11.44 an hour, but P&O admitted it paid seafarers only £4.87 an hour. This has been a breach of trust. What more will the Minister do to stop companies acting like modern-day pirates when it comes to fire and rehire?
P&O's practices, including on minimum wage issues, were unacceptable. The Seafarers Wages Act will ensure seafarers operating in UK waters get the minimum wage. We coordinated with France to set a minimum wage corridor for services between the UK and France.
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Assessment & feedback
Did not provide specific measures beyond legislation already mentioned
Response accuracy
Q4
Partial Answer
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Context
British Airways CEOs Willie Walsh and Álex Cruz threatened thousands of workers with fire and rehire four years ago, despite Government covid assistance being refused.
Two years after P&O's actions, Peter Hebblethwaite appeared in Parliament admitting pay cuts for seafarers. British Airways' CEOs threatened workers four years earlier but took no action from the Government then or now. I asked if the fire and rehire code of practice would have prevented this threat, which it could not.
The P&O case is under investigation by the Insolvency Service. The point of the fire and rehire code of practice is to ensure it is used only as a last resort, with up to 25% extra compensation for employees if employers breach the code.
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Assessment & feedback
Did not clarify why new code could not prevent threats made previously by companies
Response accuracy