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Fire and Rehire — [Mrs Sheryll Murray in the Chair]
27 April 2021
Lead MP
Kate Osborne
Jarrow and Gateshead East
Lab
Responding Minister
Paul Scully
Tags
Employment
Word Count: 14187
Other Contributors: 18
At a Glance
Kate Osborne raised concerns about fire and rehire — [mrs sheryll murray in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
Kate Osborne calls for the Government to include fire and rehire in next month's Queen's Speech, either in the Employment Bill or as stand-alone emergency legislation. She urges the Government to act urgently to outlaw this form of industrial blackmail.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The practice of fire and rehire involves sacking workers and hiring them back on lower wages and worse terms and conditions. According to research by the TUC, this has disproportionately affected black, Asian and ethnic minority workers, young workers and working-class people. Kate Osborne highlighted examples such as Matthew from Hebburn who lost his job at British Gas after refusing new contracts that included a 15% pay cut and longer hours. She also mentioned cases in London, Manchester, Loughborough, and Oxfordshire where workers faced similar challenges due to fire and rehire practices.
Beth Winter
Lab
Cynon Valley
I am concerned about the increase in fire and rehire practices during the pandemic, which are being used as a smokescreen to erode workers' rights. Centrica plc, parent company of British Gas, is reported to have hundreds of millions in profit each year while forcing unfavourable contracts on its staff.
Claire Hanna
SDLP
Belfast South and Mid Down
Claire Hanna highlighted the high incidence of fire and rehire practices since lockdown, with one in ten workers threatened by it. She pointed out that lower-paid and black and minority ethnic workers are disproportionately affected, despite many companies being profitable or receiving public funds during the pandemic.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Mr Newlands criticised the government for not taking action on fire and rehire practices, noting that companies like British Gas have threatened workers with dismissal and then asked them to accept worse terms. He proposed legislation to ban fire and rehire through an amendment to the Employment Rights Act 1996 and urged the government to include a pledge in the upcoming Queen's Speech. I hear warm words from the government but am concerned about workers who have taken redundancy or been forced out of business due to fire and rehire threats. I also ask for a guarantee that the ACAS report will be published in full after the Queen's Speech, along with what actions the Government plans to take on it.
Grahame Morris
Lab
Easington
The use of fire and rehire tactics has led to dramatic pay cuts and worsened terms for workers. The Prime Minister backtracked at Prime Minister's Questions when asked about outlawing the practice, despite ACAS having reported on it since 17 February.
Ian Byrne
Lab
Liverpool West Derby
Ian Byrne expressed strong opposition to the practice of fire and rehire, citing its destructive impact on livelihoods, families, and communities. He highlighted specific cases where companies like British Gas have used this tactic despite posting substantial profits during the pandemic, such as Centrica's £447 million profit in 2020. Byrne urged the Minister to take action based on the ACAS report and called for a commitment from the Government to outlaw fire and rehire.
Ian Lavery
Lab
Blyth and Ashington
The MP highlighted the difficulties faced by workers subjected to fire and rehire practices, citing specific examples of salary cuts at companies like Goodlord, Go North West, Jacobs Douwe Egberts, Melrose Brush, and Heathrow. He emphasized that these are real people with mortgages and families who have been treated unfairly.
Imran Hussain
Lab
Bradford East
Imran Hussain criticised the Government's failure to act on fire and rehire tactics, citing the British Gas case where hundreds of employees were fired for refusing to sign contracts with worse terms. He highlighted the rise in precarious employment conditions due to the pandemic and employers' use of legalised blackmail against their staff. Hussain also emphasised that such practices harm families financially and weaken good employers unable to compete without similar tactics.
Jack Dromey
Lab
Birmingham, Erdington
He expressed concern about the current practice of 'fire and rehire' in British Gas, affecting skilled workers who had previously enjoyed secure employment. He highlighted that 350 members have lost their jobs due to this practice, with one estimate suggesting that one in ten workers across Britain have suffered from such treatment or faced its threat.
Hayes and Harlington
Mr McDonnell highlighted the negative impacts of 'fire and rehire' practices in his constituency, particularly at Heathrow where British Airways and Heathrow Airport Ltd attempted to cut wages and undermine working conditions during the pandemic. He mentioned that these actions led to significant anger among workers and a mental health crisis within the community. Workers felt betrayed as companies made large profits while relying on government support.
Margaret Greenwood denounced fire and rehire as abusive and immoral, describing it as an attack on working people's rights. She cited examples of high-profile disputes involving major companies and pointed out that young and black and minority ethnic workers are particularly affected.
British Gas engineers in my constituency of Birkenhead were sacked by Centrica due to their refusal to accept a pay and conditions cut. One in ten British workers has faced fire and rehire threats over the past year, despite 70% of these companies turning a profit. This practice is not about economic necessity but corporate exploitation during a public health crisis.
Navendu Mishra
Lab
Stockport
Trade unions offer workers a voice in the workplace and benefit from better terms and conditions. British Gas has fired almost 500 engineers for refusing new contracts, while Go North West drivers have been blackmailed into taking pay cuts of £2,500.
Patricia Gibson
SNP
Plymouth, Sutton and Devonport
I support the SNP colleague's efforts on fire and rehire legislation but criticise both Labour and Conservative parties for opposing devolution of employment law to Scotland, which would allow protection of workers. I urge for immediate legislative action.
Richard Burgon
Lab
Leeds East
He criticised the Conservative Government for not taking action against 'fire and rehire' practices, which he described as a form of legalised robbery aiming to transfer wealth from wages to profits. He called for an industrial-scale fightback against this practice.
Sam Tarry condemned the use of fire and rehire as an unacceptable practice, especially during a pandemic. He cited British Airways' attempt to force staff into inferior contracts despite receiving significant taxpayer support through furlough schemes. Tarry also highlighted Centrica's controversial stance on fire and rehire, suggesting potential misleading statements made before Parliament, and noted the impact of such practices on local authorities like Thurrock Council.
Sharon Hodgson
Lab
Washington and Gateshead South
The MP discussed the case of British Gas engineers being fired for refusing to sign new contracts with worse terms, mentioning a similar situation at other companies like British Airways and Jacobs Douwe Egberts. She criticized the government's lack of action and called for legislation to ban fire and rehire practices.
Sheryll Murray
Con
North Cornwall
Reminded Members about the new hybrid arrangements for the debate, including timings and technical support procedures. Advised virtual participants to be visible at all times and reminded both physical and virtual attendees of mask-wearing requirements.
Tan Dhesi
Lab
Slough
I am concerned about the use of fire and rehire practices in my constituency, particularly within the aviation sector. The impact has been devastating for workers, with companies such as British Gas forcing employees into inferior pay and conditions or risking job loss. Even prior to the pandemic, UK employment law was inadequate, but these immoral tactics have worsened during the crisis.
Government Response
Paul Scully
Government Response
The minister thanked the hon. Member for Jarrow for securing the debate and acknowledged the distress caused by fire and rehire practices, while stressing the importance of a balanced approach to employment rights. He highlighted that businesses need flexibility but also recognised the anxiety and vulnerability felt by employees. The minister noted the Government's efforts in supporting 11.4 million jobs through the job retention scheme during the pandemic. While he acknowledged calls for legislation banning fire and rehire, the minister emphasised the need for robust evidence before making policy decisions. He mentioned that ACAS is conducting an evidence-gathering exercise on this issue. The minister stated that employers proposing collective redundancies must consult employees or their representatives and notified the Secretary of State within specified timeframes. He pledged to continue discussions and debates on fire and rehire, ensuring a fair balance between protecting workers' rights and maintaining business viability.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.