Move over Tesco PLC (LSE:TSCO), landscape products group Marshalls (LSE:MSLH) PLC has been identified as the new Scrooge by the Unite union.
On the day that relations between the union and the supermarket giant took a turn for the better, with Tesco making an improved offer to Unite’s members working at Tesco’s distribution centres, the union was back on its soapbox complaining about the “hire and fire” policies of Marshalls, a company valued at £1.4bn that made £39mln profit before tax in the first half of this year.
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The union said Marshalls has issued redundancy notices to more than 1,500 workers this Christmas without attempting to engage with the union that represents many of them.
Sharon Graham, the general secretary of Unite, described Marshalls’ threat to dismiss its entire workforce and then rehire them on new terms as “simply appalling”.
“If Marshalls does not rescind this abhorrent ‘fire and rehire’ strategy make no mistake, the union will fight back. We’ll leave no stone unturned in ensuring our members are treated fairly and decently,” said Graham, possibly alluding to Marshalls’ stock in trade, which is paving stones.
Unite said that in the past 18 months a large number of companies have attempted to use the pandemic as an excuse to fire and rehire the workforce on reduced pay and worse conditions.
The union said the guilty parties included household names such as Weetabix and British Airways.
The union was caught on the hop by the decision as it was about to embark on negotiations with the company about bank holiday pay issues, in conjunction with the conciliation service, Acas.
Unite said the decision to bypass standard negotiations and go for the “fire and rehire” option appeared to be part of a “cynical plan” to undermine the union with the company’s workforce.
“Refusing to even enter into negotiations with Unite before proposing to fire and rehire its workforce, to resolve concerns about changes to shift patterns demonstrates that Marshalls is treating its workers with absolute contempt,” said Jerry Swain, Unite’s national officer for the construction sector.
Last month, Acas produced guidance at the government’s behest to help employers explore all other options first before considering fire and rehire to change employee contracts.
"Our new advice is clear that fire and rehire is an extreme step that can seriously damage working relations and has significant legal risks for organisations,” said Acas’s chief executive, Susan Clews, at the time of the publication of the guidance.
"Employers should thoroughly explore all other options first and make every effort to reach agreement with staff on any contract changes.
"Organisations that consult with their workforce in a genuine and meaningful way about proposed changes can help prevent conflict at work and stay within the law,” Clews said.
The Acas recommendations are not legally enforceable and Unite warned at the time that Unite warned that unscrupulous employers would continue to go down the fire and rehire route.