Fire and Rehire

Sam Tarry Excerpts

Tuesday 27th April 2021 Westminster Hall

[Sam Tarry (Ilford South) (Lab)]

It is a pleasure to serve under your chairmanship, Mrs Murray. I draw attention to my entry in the Register of Members’ Financial Interests, and congratulate my hon. Friend the Member for Jarrow (Kate Osborne) on securing the debate at a time when the shameful practice of fire and rehire is increasingly weaponised by companies to exploit workers. Fire and rehire should never be acceptable in any circumstances, and I would like to hear the Minister commit to outlawing that anti-worker practice today. It is nothing short of disgraceful that so many companies have been allowed to engage in it in the middle of a global pandemic.

Fire and rehire is not the final option left to the companies in question. They are not struggling to make ends meet. Many continue to pay their chief executive officers six or seven-figure salaries and to fork out massive dividends to their shareholders, while claiming that they cannot afford to pay their staff a decent day’s wages for a decent day’s work. In the case of British Airways, whose former chief executive officer I had the misfortune to encounter on several occasions during my time on the Transport Committee, it attempted to force fire and rehire down the throats of its staff despite making tens of millions of taxpayers’ money for furloughing its workers, and despite the parent company IAG having made billions in profits the previous financial year. Thanks in large part to the efforts of my union Unite, British Airways was forced to ditch some of its plans to fire and rehire 30,000 of their staff.

British Airways was not, sadly, the only UK major employer whose reputation has now been trashed as a result of the decision to pursue that policy. Last year, British Gas told its shareholders that it would slash 5,000 jobs and committed to forcing the remaining 2,000 to undergo a fire and rehire process before it had engaged with the GMB union. In January, Centrica chief executive Chris O’Shea told the Business, Energy and Industrial Strategy Committee that the company had been forced to issue the fire and rehire threat before talks began, by law. In a leaked email that I have here from 22 February, of which I have been made aware, Mr O’Shea informed British Gas’s human resources team it would no longer use fire and rehire as a strategy. He writes in the email that

“I recognise that the use of fire and rehire has led to a lack of trust, and I understand the impact this has had on morale, which is why we pledge never to revisit the use of fire and rehire again.”

If he would never consider fire and rehire again, why did he previously say that it was the only option when appearing before a Select Committee? I am deeply concerned that Mr O’Shea may have misled Parliament in the way that he defended himself, given the subsequent email in which he explicitly states that he would consider another option.

The reality is that Mr O’Shea’s actions mean that people will no longer think of British Gas as a proud British company, and maybe it is time for him to consider his own position. It would certainly be one way of saving the country £775,000. Local authorities have also been caught up in the unsavoury practice, including the Conservative-run Thurrock Council, with changes to terms and conditions that see workers losing over £3,000 a year. Thankfully, an election is coming up next week, so perhaps that will also be consigned to the dustbin of history.