Key facts
- Around 23,000 Glasgow council non-teaching staff face potential dismissal and rehiring under new terms.
- The 'fire-and-rehire' plans are a response to failed negotiations over a new pay and grading system.
- Unison refused to ballot members on an offer that would lead to pay cuts for 11% of employees.
- The Scottish government's deputy first minister has mediated talks to pause the process.
- The council risks financial ruin if it cannot agree a new pay structure, similar to Birmingham in 2023.
Thousands of Glasgow council workers are facing potential dismissal and rehiring under less favorable terms, a move described as one of the UK's largest 'fire-and-rehire' exercises, following the breakdown of union negotiations. The dispute centers on a new pay and grading system designed to address historical pay equality issues.
Negotiations between the SNP-led council and the GMB, Unison, and Unite unions faltered this week. Unison specifically refused to put an offer to its members that would have resulted in pay cuts for 11% of the council's non-teaching staff, prompting the council to initiate the 'fire-and-rehire' process by issuing letters. The plans were temporarily paused when Unison returned to talks, but collapsed again midweek.
Council leader Ricky Bell indicated that Unison members might still be subject to dismissal and rehiring while negotiations with other unions continued. Unison is reportedly seeking legal advice on whether its members can be treated differently based on union affiliation. An attempt by Green councillors to block the scheme was rejected by the City Administration Committee, with co-leader Anthony Carroll warning of a 'genuine cliff-edge'.
The Scottish government has stated that 'fire-and-rehire' practices do not align with principles of fair work. Deputy First Minister Jenny Gilruth chaired mediation talks on Friday, securing a temporary pause on the practice for the weekend. However, Unison insists the 'fire-and-rehire' must be permanently removed for negotiations to proceed in good faith.
Workers affected by the week's events have expressed anger and anxiety over the uncertainty. One worker described the situation as a 'rollercoaster ride of anxiety.' Those close to negotiations criticized the 'blatant cynicism' of the council's approach, noting that the 12-week notice period for the 'fire-and-rehire' letters, sent in late September, is set to expire shortly before the practice becomes illegal in January under new UK employment law.
Glasgow council previously agreed to pay over £500 million to 8,000 workers in 2019 to resolve unequal pay issues. The current situation risks financial ruin for the authority if a new pay structure cannot be agreed upon, echoing the challenges faced by Birmingham in 2023. The council had offered an additional year of pay protection for those facing wage cuts, a move council leader Ricky Bell stated represented a package well over £100 million in extra pay. Unison, however, is seeking further concessions and a longer period of pay protection, emphasizing the need for a "properly funded settlement that delivers equal pay without leaving thousands of other workers behind."