Fire and Rehire Tactics — [Esther McVey in the Chair]

Part of the debate – in Westminster Hall at 2:48 pm on 15 June 2022.

Alert me about debates like this

Photo of Jim Shannon Jim Shannon Shadow DUP Spokesperson (Human Rights), Shadow DUP Spokesperson (Health) 2:48, 15 June 2022

It is a real pleasure to speak in this debate and to follow 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. 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 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.