Council 'threatens' staff with sack in 'fire and rehire' anger

Chief executive Graham Farrant wrote to staff saying they could face being dismissed and reengaged on new terms, the GMB Union said. 

This tactic, also known as ‘fire and rehire’, was roundly condemned by the Labour Party when P&O Ferries dismissed all its staff in 2022. 

BCP Council’s Liberal Democrat-led cabinet will unveil the proposals at a cabinet meeting on December 10. 

Poole MP Neil Duncan-Jordan said: “No self-respecting employer threatens its hard-working staff with the prospect of losing their job and being re-hired on worse conditions, just before Christmas. 

“The Government is moving to end this practice once and for all, but it would appear BCP are trying to get in quick before their plans become illegal. 

“This decision rides roughshod over years of collective bargaining and industrial harmony at the council. That’s why we want to see fewer threats and more talk.” 

Poole MP Neil Duncan-Jordan (Image: PR)

GMB, the union for local government workers, has warned BCP Council not to fire and rehire its entire workforce.  

Nick Day, GMB senior organiser, said it is “appalling” that public sector employees are being threatened with the sack before Christmas. 

He said: “As a recognised union, GMB had no sight of this Scrooge-like email before it was sent and it flies in the face of constructive discussions held last Monday. 

"The chief executive and the Lib Dem councillors in attendance at that meeting have now approved this ill-advised attempt to bully staff. 

“The council, through its own dreadful and inept communication with its staff, has been unable to appease concerns over its new and expensive job evaluation scheme, so it’s now decided to threaten its own staff instead - how on earth will this appease their concerns? 

“We are asking every elected politician in Bournemouth, Christchurch and Poole to call for the withdrawal of this disgraceful proposal and that management get back around the table like adults instead of acting like children who can’t get their own way. 

“Meanwhile its staff’s Christmases are now full of worry and concern for their jobs, all because they are continuing to raise legitimate concerns about working practices.” 

Graham Farrant, BCP's chief executive (Image: Richard Crease)

Mr Farrant said the letters to staff were done to ensure nobody was "taken by surprise" and to "reassure them that they would be consulted before any decision is taken".

He added it is "disappointing" that GMB has "misinterpreted" the letter in such a way.

The chief executive said: "We have been working on a new pay structure for all of our staff for the last five years. Following three ballots by GMB, they are still not in a position to approve the offer for their members, although Unison have twice held ballots which indicated that they are ready to accept the offer.  

“Under our collective bargaining arrangements, we cannot implement the offer without the support of both trade unions. 

“We know that doing nothing is not an option – we must put in place a fair and consistent pay structure, and terms and conditions, to address the ongoing pay inequalities that remain in our organisation some five and a half years after BCP Council was formed following local government reorganisation. 

“We have no plans to serve notice to colleagues before Christmas and we are simply ensuring that we have the right processes in place should we need them as a last resort. 

“As a responsible council, we are firmly committed to reaching a negotiated agreement, but it is only right that we prepare plans should we not reach that position, even if we do not need to use them.  The report to cabinet on 10 December sets out the options that would allow the council to progress with its proposed pay structure if we cannot reach a negotiated agreement.  

“As an open and transparent employer, I have written to all staff to let them know about the report so that they are not taken by surprise and reassure them that they would be consulted before any decision is taken. It is disappointing that this open approach has been misinterpreted in this way by the GMB.

“The council greatly values the hard work and dedication of our colleagues, and we will continue to be open and transparent with them on this matter.” 

BCP Council’s lengthy pay saga

THE so-called Pay and Reward offer has been in the making ever since BCP Council formed in 2019. 

Officials have always insisted that the proposed single pay structure would mean all employees employed from the legacy borough councils would “address any inconsistencies and inequalities”. 

“Colleagues doing the same level of work will receive equal pay,” BCP Council’s director of people and culture Sarah Deane said. 

But unions GMB and UNISON have so far not come to any agreement with BCP Council’s proposals. 

Two union ballots were held before the summer of this year – UNISON’s members accepted the proposals, but GMB did not. 

One major reason for the ballot being rejected was that employees wanted to know their personal pay outcome before considering the offer. 

BCP Council released the individual pay outcomes, and it showed 85 per cent would experience no change or an increase in salary. 

However, 15 per cent would see a salary decrease but pay protection until June 2026, by which time that percentage would be down to nine per cent due to inflation. 

And so in September, GMB was able to go back to its members for a third ballot. But UNISON, because the numbers had not been available during the initial votes, wanted a re-ballot. 

The results of the ballot showed GMB members were still not happy with the proposals and 72 per cent rejected BCP Council’s offer. 59 per cent of UNISON members accepted. 

Ms Deane said in a report that fire and rehire was always the “last resort” if negotiations had failed. 

She added: “These ballot results mean that under the collective bargaining process we cannot proceed as we do not have the agreement of both trade unions.  

“We are obviously very disappointed with this outcome and understand the frustration and anxiety that the ongoing delay will create for our colleagues.  

“This also means further delay to our ability to implement a single pay structure and align pay outcomes for our staff.” 

On fire and rehire, Ms Deane said: “This is a huge undertaking which will require significant resources to be committed to the processing of individual consultation and will undoubtedly heighten tensions with the trade unions.” 

Government's view on 'fire and rehire'

IN October's, deputy prime minister Angela Rayner said the new Employment Rights Bill will end “bullying” tactics of fire and rehire.

“Even the threat of fire and rehire will often mean people voluntarily agree to lower pay and reduced terms and conditions,” she told the Commons.

“Our Bill will end these bullying tactics for good. It will put an end to fire and rehire, and fire and replace, unless employers can prove they face financial difficulties that threaten their business survival and change in the employee’s contract was unavoidable."

Earlier this year, ex-transport secretary Louise Haigh had called P&O Ferries a “cowboy operator” when the Government announced plans to close a fire-and-rehire loophole. The firm had sacked 800 workers without consultation in 2022.

Ms Rayner told the Commons: “Never again will any company be able to get away scot-free exploiting a loophole to sack employees without notice.

“No longer will our seas be the byword for a race to the bottom on standards.”

Graham Farrant's letter in full

BCP Council has shared a copy of the letter Mr Farrant sent to staff last week.

It has been a few days since we received the results of the recent GMB and UNISON ballots on the Council’s Pay and Reward offer.

We have used the time to reflect on the outcome of the ballots and I would like to take the opportunity to update you on the next steps in the process.

Responding to the ballot results

As you will be aware, with UNISON having voted to accept the offer, but the GMB members having voted ‘No’, the ballot results mean that we are currently unable go ahead with our plans to implement Pay and Reward, as we need the agreement of both trade unions to proceed further. 

However, we also know that doing nothing is not an option – we must put in place a fair and consistent pay structure, and terms and conditions, to address the ongoing pay inequalities that remain in our organisation some five and a half years after we came together to form BCP Council. 

I think we can all agree that colleagues should be paid equally for the same level of work. This is essential for the continued success of our organisation and - as a caring and responsible employer - it is a top priority for us to ensure this happens.

We have been through a prolonged collective bargaining process with our trade union colleagues. Through this process we have been able to bring forward a proposal that is both competitive and affordable; which maintains or enhances the pay levels of the large majority of colleagues and would limit the numbers of those seeing a salary reduction to less than 10% of our total workforce following the extended period of pay protection that is included in the offer.
 
We have listened to the feedback of union members and have enhanced the offer where we can. We have also shared information with you about your individual pay outcomes – a point raised as a key concern for colleagues by both trade unions.

However, after three separate union ballot processes, we have yet to achieve a position where agreement can be reached.

Next steps in the process
 
We remain committed to working constructively with GMB and UNISON to reach a negotiated solution, but I must be honest with you – there is no scope within the constraints of the Council’s current budget to substantially change or to enhance the proposed offer beyond what has already been negotiated.  Because of this, we need to prepare for a scenario where we are unable to secure a collective agreement with both of our trade unions.

Today, we have published a report asking Cabinet’s approval to start a process that would allow us to progress with Pay and Reward in the event of our ongoing discussions with the trade unions concluding without a negotiated agreement. You can access the report via the link below: 
 
View the Pay and Reward report to Cabinet here

In effect this would allow us to continue to explore a negotiated solution with the trade unions, but should negotiations fail to achieve an agreed outcome, the Council would then be able to consult you as individual colleagues to see if you wish to accept the Pay and Reward offer.

In this scenario, we are confident that most of us would be willing to accept the proposal as it offers a competitive set of terms and conditions, a generous benefits package, and allows us to achieve our primary aim of addressing pay inequality.

Regrettably, this course of action means the Council would need to consider dismissal and reengagement for any colleagues who declined to accept the offer of new terms.

We have always said dismissal and reengagement would be the option of last resort for the Council and I want to assure you that we will continue to make every effort to avoid this scenario. The reassurance is that even with dismissal and re-engagement, all colleagues would be offered new contracts on the terms already set out in the Pay and Reward offer, and would be no worse off than had both unions agreed it at the recent ballot.

I appreciate that this news is unsettling, but I’m sure you will understand why it is so important to end the uncertainty and frustration felt by everyone on this issue as quickly as possible.

Over the coming weeks, we will update you on what this means for you and your colleagues but in the meantime, we will continue discussions with our trade union colleagues.

Once again, I’d like to thank you for your patience on this matter and express my gratitude for everything you do for the Council on behalf of our residents.

Graham Farrant 
Chief Executive, BCP Council