Fire and Rehire

Dear constituent,

Thank you for contacting me about “fire and rehire”, where employers dismiss workers in order to re-employ them on inferior pay and worse terms and conditions.

I agree with you on this important issue. Firing and rehiring tactics are wrong and should be outlawed. Using the threat of unemployment to reduce pay and diminish terms and conditions is against British values, undermines good employers, harms working people and damages our economy.

I know that British Airways (BA) and Centrica/British Gas have previously stated their intentions to dismiss employees and rehire them on new terms if they are unable to renegotiate employees’ pay, terms and conditions – although I also understand that following negotiations with the unions, BA has now withdrawn the prospect of firing and rehiring employees.

I believe it is completely unacceptable for these companies to try to force through changes to employees’ pay, terms and conditions on this basis. After a decade of pay restraint and in the middle of a deep recession, this is the last thing working people, the employees who have kept those companies and our country going, and our economy need. I therefore believe the Government must step in and end the ability of companies to use the threat of fire and rehire.

I am aware that a Bill, the Employment (Dismissal and Re-employment) Bill, which seeks to “prohibit employers dismissing employees and subsequently re-employing them for the purpose of diminishing the terms and conditions of employment”, was introduced to the House of Commons this summer. Unfortunately, the Bill is unlikely to make any progress through Parliament as it is a Presentation Bill – one that does not involve a debate or a vote but is a way of drawing attention to an issue. Nevertheless, I believe legislation in this area is vital to give workers the security they need. I can therefore assure you that I will continue to support calls for action on this issue.

Thank you once again for contacting me.

Yours sincerely,

Peter Dowd MP