Glasgow Council Threatens "Fire and Rehire" Over Equal Pay Stalemate

Glasgow City Council has announced plans to dismiss over 23,000 staff and rehire them on new contracts, a move described by a worker as "heartbreaking" and a failure to support employees.

The council initiated these "fire and rehire" plans after negotiations with trade unions stalled over proposed changes to a pay system that was found to discriminate against mostly female workers.

The new system aims to replace the existing structure, which has already led the council to pay over £770 million to 19,000 claimants in back pay. While the council states that 63% of affected staff would see their pay increase or remain the same under the new system, 11% are set to face wage reductions, with some potentially losing up to £11,500 annually.

One council worker, Joanne, who has served for 25 years, expressed her distress at being informed two weeks prior that her wages would be cut. She criticized the council's assertion that it cares for its employees, stating, "I came away from my work crying, really, really upset. I couldn't believe that after 25 years service to Glasgow City Council I am getting let down yet again."

Talks between the council and the GMB, Unison, and Unite unions collapsed when Unison refused to ballot its members on the proposed new pay offer. The council accused Unison of "betraying" its members by denying them a vote, while Unison's education convener, Sylvia Haughey, called the council's actions "bullying tactics." She asserted that the union is fighting for members facing significant financial detriment and remains willing to negotiate.

Calls for Negotiation

Scottish health secretary Neil Gray urged all parties to return to the negotiating table. "This government supports fair work principles, and we would want fair work principles driving the employment of workers," he told BBC Scotland.

While the GMB and Unite unions had expressed willingness to ballot their members on the pay structure, having reportedly secured an additional £110 million for the salary structure, Unison argued this funding would not assist staff facing wage cuts. Unite described the fire and rehire threat as a "scandalous threat."

The council's director of communications and corporate governance, Colin Edgar, stated that the breakdown in talks left "no agreed way forward." He emphasized that the new scheme would remove unequal pay and result in a higher overall pay bill for the council. He also noted that trade unions had negotiated an increase in pay protection from six months to 12 months for staff facing detriment.

Every non-teaching staff member, from chief executive Susanne Millar to refuse collectors, is set to receive a dismissal letter, with new contracts due to take effect on January 1. This date coincides with changes to UK employment law that would make dismissing an employee for refusing contract changes automatically unfair.