Bankrolled by trade unions, a campaign in support of a bill to end this practice will come to a head before the bill’s second reading on Friday the 29th of October 2021.
Although Boris Johnson and other ministers have condemned the tactic, which is used by employers to drive down wages and sack staff, the bill (promoted by Labour MP Barry Gardiner) is being opposed by the government.
Big companies that have used this tactic include the likes of Argos, Tesco and Asda, although it should be noted that some Labour councils, including Tower Hamlets and Sandwell, have also taken part in firing and rehiring.
Mr. Gardiner has specifically singled out the Clarks shoe company for this practice, as 100 workers’ jobs at a distribution centre are under threat if they refuse to accept a 15% pay cut. He said to Sky News: “Clarks was founded 200 years ago by two Quaker brothers who built houses, schools and even a swimming school for their staff and they would be turning in their graves if they knew how the company was treating its workforce today.”
Sir Keir Starmer, Labour leader, called on the prime minister to “stand by his own words” and to “stop selling out working people and join Labour MPs to outlaw this despicable practice”.
Speaking about the practice of fire and rehire, he added that it is “an appalling tactic to get around the law and cheat working people out of the pay and conditions that they have earned through their hard work.”
Both Boris Johnson and Jacob Rees-Mogg have spoken publicly against the practice of firing and rehiring, however Conservative MPS are still on a three-line whip to oppose the bill. This move has provoked fury amongst Labour MPs, who are on a three-line whip to vote for it.
Speaking to Sky News, Mr Gardiner said: “I have bent over backwards to make this cross-party. I have made the bill as cross-party and non-controversial as possible.
“I’m not actually banning fire and rehire. What I’m doing is trying to put good practice into statute and penalise bad practice. I’m not banning it outright.
“Businesses sometimes have to restructure. I have been very careful not to ban it, but to make good practice the statutory norm.
“What it does is put obligations on the employer to consult, be transparent and negotiate as soon as they begin to think they may have to make substantial changes in working practices or restructure because they think they might have to go into liquidation.
“If they follow these steps, they can ultimately end up firing and rehiring, but only if they follow these steps.
“If they fail to follow these steps then the workforce or the union can apply to the Central Arbitration Committee. They will take a decision on whether they have followed these steps or not.”
A No10 spokesperson has said that “there is insufficient evidence to show legislation will stop the practice or will be effective.”