Home News Tesco Temporarily Barred From ‘Fire and Rehire’ at Livingston Warehouse

Tesco Temporarily Barred From ‘Fire and Rehire’ at Livingston Warehouse

Tesco Temporarily Barred From ‘Fire and Rehire’ at Livingston Warehouse

Retail trade union Usdaw has won a court case preventing Tesco from moving staff at its Livingston distribution center onto new contracts, in what the union described as a ‘fire and rehire’ tactic.

The judgment from the Court of Session in Edinburgh means that the supermarket is prohibited from unilaterally withdrawing an entitlement to retained pay and terminating workers’ contracts in order to re-engage them on new terms that do not include retained pay.

How to consult collectively with a remote workforce during the coronavirus pandemic

Usdaw claimed that the arrangement would have resulted in workers losing between £4,000 and £19,000 per year.

However, the prohibition is only temporary and only affects employees at the Livingston distribution center. The union claimed staff at warehouses in Litchfield, Daventry and Avonmouth still faced the threat of being moved on to new contracts.

Usdaw national officer Joanne McGuinness said: “We are very pleased to have secured this victory for our members who faced a huge cut in wages after Tesco moved to renege on a longstanding collective agreement made in good faith. It is a major victory in the fight against ‘fire and rehires’ tactics, which are now being used by too many businesses.

“The court delivered a temporary prohibition and we are now calling on the company to honor the judgment and withdraw its plans at all sites. We stand ready to seek a permanent interdict for Livingston and a High Court injunction for the other sites to defend this unfair pay cut for hundreds of key workers.

“Tesco can stop this now, by doing the right thing and withdrawing their threat to these longstanding staff, who have worked throughout the pandemic to keep stores stocked with the essential items we all rely on.”

A Tesco spokesperson said: “We are surprised by the court’s decision and we are looking at how we can legally challenge this. We will continue to engage with Usdaw and the very small number of colleagues at our Livingston distribution center who are affected by this.

“Retained pay was offered a number of years ago as an incentive to retain colleagues. Today we have over 16,000 colleagues working in distribution, the vast majority of whom do not receive this top-up, so we have taken the decision to phase it out

“We made a fair offer to those colleagues affected, and many of our colleagues have chosen to accept this. This decision does not affect the voluntary process.”

we are now calling on the company to honor the judgment and withdraw its plans at all sites” – Joanne McGuinness, Usdaw

“Fire and rehire” tactics – whereby an organization threatens to dismiss workers if they do not re-apply for their jobs on new, usually inferior, terms – are becoming increasingly common. TUC research last month found that a tenth of workers have been told to re-apply for their jobs on worse terms during the pandemic, rising to 18% among 18 to 24-year olds and 15% among BAME employees.

The TUC has called for the practice to be outlawed, and before Christmas, a cross-party group of MPs signed a letter urging British Gas owner Centrica to withdraw a threat to fire and rehire staff.

Eskalera, a Startup Led by Goldman Sachs’ Former HR Head Has Launched a Diversity and Inclusion Index

Eskalera, a technology startup led by Goldman Sachs former human resources head Dane Holmes, has launched an index to measure corporate diversity and inclusiveness,...

HSBC to Remove 35,000 Jobs Amidst Covid-19 Crises

HSBC Holdings Plc has restarted cutting as many as 35,000 jobs, three months after the coronavirus outbreak forced it to pause a long-awaited overhaul...

Genpact Offers Its Internal Skill Training Program Globally for Everyone

Genpact has announced Adapt and Rise, a role-based online learning platform that leverages Genpact's expertise honed from delivering real-world change for hundreds of clients....

San-Francisco Based Learning Platform Degreed Has Raised $32 Million in New Funding

The upskilling platform, Degreed, has announced $32 million in new funding in direct response to overwhelming demand for better skill insights, talent mobility, and...

Research Shows the Implications of Workplace Layouts on Employee Productivity and Overall Performance

As some workplaces prepare for the gradual return of employees and overhaul office layouts and seating plans, research has shown this could also have...

Employee Concierge ‘Back Technologies’ Integrates Automation Into Internal HR and Other Support Tasks

Companies are under increasing pressure to automate workflows and digitally service their employees, particularly in light of trends toward remote work. It takes an...

HR Strategies to Help Your Business Navigate the New ‘Normal’

No business is immune to the massive changes resulting from the health crisis. Organizations have proven themselves to be agile, and employees have demonstrated...

The Importance Of Diversity And Inclusion In HR, Hiring, Talent Management: Thoughts From A Top Expert

Michael C. Hyter is one of today’s best-known experts on inclusion and diversity and the author of The Power of Choice: Embracing Efficacy to Drive Your Career and The...

HR Expert Highlights Actionable Steps to ‘Make Real Change’ Against Racism in Your Workplace

Kyra Leigh Sutton, Ph.D., is a faculty member at the Rutgers University School of Management and Labor Relations, where she teaches human resources courses...

Adidas Employees Want Company to Investigate HR Chief for Response to Racial Issues

A group of Adidas employees from around the globe is asking the company to investigate its chief human resources officer, as part of a...