Concerns over housing association ‘fire and rehire’ plan
COUNCILLORS have expressed concerns about a ‘fire and rehire’ plan by a local housing association.
Elected members called out the proposals by River Clyde Homes (RCH) at the most recent full council meeting.
Councillor Colin Jackson put forward a motion expressing concerns that the housing association is considering laying off staff who do not agree to changes to their pension and offering them their jobs back on new terms.
It also called on the chief executive of Inverclyde Council to write to RCH about the matter.
The motion, seconded by Councillor Paul Cassidy, was unanimously approved.
Councillor Jackson said: “We have a duty to stand up for local workers and the ‘fire and rehire’ proposal is deeply concerning.
“Such action would be an affront to workers’ rights and to the trade union movement.
“I’m grateful for the support of fellow councillors from across the chamber in joining with me to highlight this matter.”
Councillor Cassidy added: “We know it’s a tough time financially for many organisations, including River Clyde Homes, but potentially forcing staff to reluctantly accept significant changes to their terms and conditions is completely unacceptable.
“RCH must go back to the drawing board and come up with another plan that respects workers’ rights.”
The full text of the motion is as follows:
Motion relating to the proposed transfer of the pensions of employees by River Clyde Homes and the Fire and Rehire processes being used
It is proposed that:
This Council notes that:
• River Clyde Homes (RCH) workers who remain on the final salary Strathclyde Pension Fund following the stock transfer in 2007, have been told that moves are underway to move them on to less favourable Scottish Housing Association Pension Scheme (SHAPS);
• these workers, through their trade union, have rejected RCH's revised offer;
• RCH have taken the decision to put workers on 60 days’ notice (which will take effect on Tuesday the 14th January 2025) that if they do not accept the move, their employment may be terminated, and they will be rehired on revised terms and conditions. This is the practice known as fire and rehire; and
• RCH has cited challenges around rent rises and other factors (which have not been explained) as the reason RCH management can no longer sustain their employer contributions.
This Council agrees to:
• strongly condemn any partner or anchor organisation that would use fire and rehire to undermine pay and conditions;
• support the affected staff in their struggle to maintain their employment terms & conditions together with their current Pension Scheme; and
• instructs the Chief Executive Officer to write to RCH to (i) ask that they halt the 60-day notice period immediately and the threat to end the employment of workers and (ii) call on RCH to get back around the table with trade union officers to reach a settlement that will not adversely affect the financial well-being of its workers
The council meeting is available to watch on the Inverclyde Council YouTube channel and papers from the meeting are in the ‘Committees & Meetings’ section of the council website.