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Government cracks down on ‘fire and rehire’ practices

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PLANS for a new statutory code will crack down on unscrupulous employers that use controversial dismissal tactics.

Courts to be given power to apply a 25% uplift to an employee’s compensation in certain circumstances if an employer doesn’t follow the new Code.

Business Secretary Grant Shapps: “Our new code will crack down on firms mistreating employees and set out how they should behave when changing an employee’s contract.”
The Government is taking strong action against unscrupulous employers that use the controversial practice of ‘fire and rehire’, it has announced today (Tuesday 24 January).

Last year P&O Ferries deliberately sought to evade the law by sacking 786 seafarers without due consultation. Having made no efforts to inform the Business Secretary at the time, they failed to follow best practice or do the right for their employees. As a result, Grant Shapps, as Transport Secretary at the time, introduced a nine-point plan including primary legislation to tackle these issues.

Through a planned statutory code of practice, the Government is protecting employees and cracking down on employers that use controversial dismissal tactics. The code, subject to a consultation first, will make it explicitly clear to employers that they must not use threats of dismissal to pressurise employees into accepting new terms, and that they should have honest and open-minded discussions with their employees and representatives.

‘Fire and rehire’ refers to when an employer fires an employee and offers them a new contract on new, often less-favourable terms. The government has been clear on its opposition to this practice being used as a negotiating tactic and is now making it clear how it expects employers to behave.

This new statutory code of practice will set out employers’ responsibilities when seeking to change contractual terms and conditions of employment, including that businesses must consult with employees in a fair and transparent way when proposing changes to their employment terms.

Once in force, Courts and Employment Tribunals will be able to take the code into account when considering relevant cases, including unfair dismissal. They will have the power to apply a 25% uplift to an employee’s compensation in certain circumstances if an employer is found to not comply with the statutory code.

Business Secretary Grant Shapps said: “Using fire and rehire as a negotiation tactic is a quick-fire way to damage your reputation as a business. Our new code will crack down on firms mistreating employees and set out how they should behave when changing an employee’s contract.

“We are determined to do all we can to protect and enhance workers’ rights across the country.”

Maritime Minister Baroness Vere said: “We remain committed to protecting seafarers and championing the importance of their welfare. This new code goes one step further to doing just that, helping us ensure employees are treated fairly and employers hold meaningful consultations on any proposed changes to employment terms.

“This forms part of our nine-point plan to reform and improve seafarer welfare and close down any legal loopholes that allow employers to avoid paying them – irrespective of flag or nationality.”

Employers should be deterred from using this controversial tactic and must ensure they do not mistreat employees. If they do, they risk poor relations with their employees, and will open themselves up to the risk of legal claims.

The Government asked the Advisory, Conciliation and Arbitration Service to produce guidance for employers, which was published in 2021. This new Code of Practice shows the Government is going a step further to protect workers across the country, while balancing that with the flexibility that businesses require

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Business

Tata Steel talks collapse amidst threats of immediate redundancies

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NEGOTIATIONS between steel unions and Tata Steel hit a roadblock, leaving thousands of jobs at risk. The breakdown in talks was announced by Roy Rickhuss, the General Secretary of Community, expressing deep disappointment in Tata’s propositions.

Rickhuss criticised Tata for presenting proposals deemed “completely unacceptable” by the unions. He accused the company of prioritising profit over job security, highlighting their intention to slash jobs and penalise vulnerable employees. Despite Tata’s claims of being a responsible employer, Rickhuss asserted their failure to engage meaningfully in negotiations.

The National Trade Union Steel Co-Ordinating Committee (NTUSCC), chaired by Rickhuss, issued a scathing statement following the breakdown. The Committee outlined Tata’s refusal to negotiate in good faith, focusing instead on profit maximisation to the detriment of workers and their communities.

Tata’s proposals included the closure of critical facilities, such as BF 5 and BF 4, resulting in immediate redundancies. The offered Voluntary Redundancy (VR) packages fell short of expectations, with no guarantee against compulsory redundancies. Moreover, Tata’s stance on job retention and training schemes drew sharp criticism from the unions.

Rajesh Nair, representing Tata, faced accusations of an indifferent attitude towards the workforce. The company’s refusal to address concerns about job security and the VR package further strained relations with the unions.

Rickhuss, alongside Peter Hughes of Unite and Charlotte Brumpton-Childs of GMB, asserted unity among the unions against Tata’s uncompromising stance. They urged members to support industrial action to defend their industry and secure better terms.

The looming threat of industrial action stems from Tata’s reluctance to reconsider its plans despite the potential for widespread job losses. Unite General Secretary Sharon Graham emphasised the detrimental impact of Tata’s proposed cuts, warning of a ripple effect across the regional economy.

Graham underscored the availability of alternatives for Tata to consider, including Labour’s proposed £3 billion UK Steel investment fund. This fund could safeguard jobs and position the UK as a leader in green steel production.

Unite vowed to stand with Tata’s workers in their fight for a better future, utilising all available avenues to halt the company’s plans.

In response to the unfolding situation, Unite encourages media enquiries to be directed to Ryan Fletcher for further information.

The collapse of talks between steel unions and Tata paints a grim picture for the future of the industry, with job losses looming large and communities facing uncertain times ahead. As tensions escalate, the fate of thousands of workers hangs in the balance, awaiting decisive action to secure their livelihoods.

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Port of Milford Haven now official ‘a great place to work’

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THE PORT of Milford Haven has been officially accredited as a Great Place to Work-Certified™ organisation. As the first Port Authority in Britain to secure this Certification™, it is a significant achievement.

“We are very proud to be Great Place to Work-Certified™,” said Vidette Swales, HR Director at the Port of Milford Haven. “It means so much that our employees have reported a consistently positive experience with their colleagues, their leaders and their jobs. Offering a positive employee experience is not only beneficial for the people who work with us but is also key for our continued business success.”

Tom Sawyer, CEO at the Port of Milford Haven added: “Our team is operating the UK’s leading energy port, and it is of the utmost importance that we do that safely, responsibly and effectively. We’re striving for excellence and aim to provide a world class service to our customers as well as supporting sustainable coastal communities for the prosperity of future generations. Our employees are clearly at the centre of this which is why I’m delighted that they feel supported in their role. I’m especially proud that this Certification™ demonstrates our core values of Safety, Excellence, Collaboration and Sustainability so perfectly.”

“We congratulate the Port of Milford Haven on achieving their Certification™,” said Benedict Gautrey, Managing Director of Great Place to Work® UK. “Organisations which put the employee experience at the heart of their business gain their employees’ trust and, in turn, are truly able to build a great workplace culture that delivers outstanding business results.”

Find out more about careers at the Port of Milford Haven here: www.mhpa.co.uk/about/careers-at-the-port/.

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One in five now accessing Ogi’s Wales-based full fibre network

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Welsh full fibre telco – Ogi – has reached two thirds of its planned first phase rollout with one in every five premises now signed up to one of its home or business services. 

Kick starting its ambitious FTTP [Fibre to the Premises] rollout in 2021, Ogi propelled onto the UK telcomms scene with a £200million plan to bring full fibre to south Wales much sooner than planned by the incumbent operators.

The business shifted its approach at the beginning of 2024 to focus on customer take-up – attracting thousands to the full fibre switch thanks to a new competitive pricing and shorter-term contracts strategy.

Gaining first mover advantage in places like Pembrokeshire and the post-industrial towns and villages of the south Wales valleys, the fresh approach has served the provider well, with a sector-leading high customer satisfaction score to match. This comes following a targeted period of investment in back office operations and customer service, with new 7-day opening hours and refreshed online resources among the changes introduced earlier this year. 

Amid rising competition from the UK’s largest telcos, increasing build costs and other market pressures, the Gigabit-capable provider continues to see customer adoption increase, with one in five joining the network in 2023, with places like Pembrokeshire seeing double that rate of growth.

Chief Executive Officer, Ben Allwright, said: “With one in five of the premises we can serve already signed up to Ogi, it’s clear to see we’re investing in the right places. Passing the 100,000 premises milestone – two thirds of our initial plan, completed – and seeing the massive benefits from this technology as adoption increases is encouraging. 

“Putting our ISP operations first since the start of the year, and harnessing the build machine as a tool for growth has allowed us to take a breath, and make sure we’re doing the right things for our customers and long-term sustainability. While we might not be as visible installing new network as we had been – we’ve been busy in the background, supporting our existing customer base and welcoming thousands more every month. 

“We’re building something really exciting here at Ogi; and the people of Wales are invested in our journey to create a real challenger brand – one that Wales can be proud of, and others are already envious of.”

The network is currently being rolled out in around 60 towns and villages across south Wales, with thousands of customers joining the full fibre ISP every month. The Wales-based telco offers broadband and phone services for home and a suite of IT, connectivity and security options for business, with a new wholesale opportunity recently added to the portfolio for high capacity users.

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