New 'fire & rehire' rules 'not stopping' another P&O-type scandal, union warns
The new 'fire and rehire' rules are 'not going to stop' another P&O-type scandal, a union has warned.
The Trades Union Congress has warned that the new rules from ministers that have been designed to tackle "fire and rehire" practices are "not going to stop another P&O-style scandal".
They say that this crackdown is just a "reheated" and "repeated" regulation that has not deter bosses from treating staff badly.
Moreover, the Government has said companies that sack workers who do not agree to accept worse working terms face compensation payments as part of a crackdown on rogue practices.
Business Secretary Grant Shapps announced the plans on Tuesday for a statutory code of practice for employers, saying the Government are set on "protecting and enhancing" the rights of workers across the UK.
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Angela Rayner has slammed the new rule, saying it is not 'worth the paper it's written on' (Graham Hunt/BNPS)The announcement is partly in response to the actions of P&O Ferries, which last year saw 786 seafarers sacked without Union consultation.
The company was widely condemned for not providing staff with enough notice for the sackings. However, an investigation by the insolvency service found their actions were not illegal.
The Government's new rules have been slammed by the TUC general secretary, Paul Nowak, who says that they do not go far enough.
P&O suspended all ferry crossings from the UK to France and the Netherlands and made all 800 crew members redundant without Union consultation (Getty Images)Mr Nowak said: "This is a reheated, repeated announcement.
"A statutory code of practice is not going to stop another P&O-style scandal from happening, and it won't deter bad bosses from treating staff like disposable labour.
"If the Government really cared about workers' rights it wouldn't have abandoned its much-touted employment bill."
The Government has also pledged that the new law will see a code that will protect employees and clamp down on employers that use controversial dismissal tactics.
The new rule has been announced, which hopes to 'stop another P&O-style scandal' (AFP via Getty Images)Additionally, courts will be given the power to increase compensation to employees by 25% in certain circumstances. These, for example, may include is the employer does not abide by the set of rules.
Speaking about the new plan, Mr 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.
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"We are determined to do all we can to protect and enhance workers' rights across the country."
Susan Clews says they will 'carefully consider' the Government's consultation (Unknown)Susan Clews, chief executive of Acas, said: "We will carefully consider the Government's consultation on its new draft code of practice and respond to it in due course.
"Our own advice is clear that fire and rehire is an extreme step that can seriously damage working relations and has significant legal risks for organisations."
However, Angela Rayner, Labour's deputy leader, argued against the rule, saying: "This code isn't worth the paper it's written on.
"It's shameful that nearly a year after the P&O Ferries scandal the Conservatives can only offer this weak half-measure, which they admit will allow fire and rehire tactics to continue."
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