Glasgow council fire-and-rehire plan threatens pay cuts for thousands

Background to the dispute

Glasgow City Council, governed by the Scottish National Party, has been wrestling with a long‑standing pay inequality problem among its non‑teaching workforce. The council’s pay and grading system, dating back decades, leaves many employees on lower scales despite comparable responsibilities to peers in other Scottish authorities.

In an effort to resolve the disparity, the council proposed a new framework that would re‑grade staff and adjust salaries. The plan was presented to the three main unions representing council workers – GMB, Unison and Unite – during a series of negotiations that began earlier this year.

Union positions and ballot decisions

Each union responded differently to the council’s offer. GMB and Unite agreed to put the proposal to a ballot of their members, hoping that a majority would accept the changes in exchange for a clearer career pathway.

Unison, representing roughly one‑third of the affected workforce, refused to ballot its members. The union argued that the offer would see pay cuts for about 11% of council employees, a move it deemed unacceptable. Unison’s refusal forced the council to consider alternative measures to implement the new system.

Key union stances

• GMB union – willing to ballot, seeking safeguards for lower‑paid staff.
• Unite – supportive of a ballot, emphasizing the need for a transparent process.
• Unison – rejected the proposal, citing potential pay reductions and lack of consultation.

Details of the fire‑and‑rehire proposal

The council’s contingency plan involves issuing fire‑and‑rehire letters to all 23,000 non‑teaching employees. Under this approach, staff would be terminated and then offered new contracts under the revised grading structure. While the council argues that the method is legally permissible and necessary to achieve parity, critics say it undermines job security and could lead to lower wages for many.

The proposal outlines three main components:

1. Reclassification of roles into new pay bands aligned with the Scottish government pay equality policy.
2. Potential salary reductions for employees whose current pay exceeds the ceiling of the new band.
3. Opportunities for career progression through clearer grading criteria.

According to council officials, the restructuring aims to eliminate historic discrepancies and bring Glasgow’s public sector wages in line with national standards.

Potential impact on staff

Analysts warn that the fire‑and‑rehire route could have far‑reaching consequences for the workforce. A preliminary estimate suggests that up to 2,500 workers could face pay cuts, while the remainder might see modest increases or remain on similar terms.

Key concerns include:

• Loss of accrued benefits such as pension entitlements tied to length of service.
• Increased stress and uncertainty during the transition period.
• Potential legal challenges based on employment law and the right to fair consultation.

Unison has already warned members that accepting a reduced contract could set a precedent for future cost‑cutting measures across the public sector.

What staff say

"We have dedicated our careers to serving Glasgow’s residents, and now we are being asked to give up years of hard‑earned pay," said a senior clerk who asked to remain anonymous.

Political and legal context

The fire‑and‑rehire tactic is not new in the United Kingdom. It gained national attention during the 2022 controversy surrounding a major retailer’s attempt to replace staff on reduced terms. Legal experts note that while employers can lawfully terminate contracts and re‑hire employees, the process must comply with the Parliamentary briefing on employee rights. Failure to follow proper consultation procedures could expose the council to tribunal claims.

Politically, the move places the SNP‑led council at odds with its own party’s commitment to protecting public sector workers. Opposition parties, including the Scottish Labour Party, have condemned the plan as “an attack on workers’ rights”.

Comparative cases

Similar fire‑and‑rehire schemes have been reported in other UK councils, most notably in the BBC report on fire‑and‑rehire covering a northern English authority. Those cases often resulted in prolonged industrial action and costly legal battles.

What comes next for Glasgow council

With Unison refusing to ballot and the deadline for issuing fire‑and‑rehire notices looming, the council faces a critical decision point. Options on the table include:

1. Re‑opening negotiations with all unions to seek a revised offer that avoids contract termination.
2. Proceeding with the fire‑and‑rehire letters, accepting the risk of legal challenges and industrial unrest.
3. Escalating the issue to the Scottish Government for mediation, as suggested by the Scottish Government.

Stakeholders agree that any path forward must balance the legitimate goal of pay equality with the need to preserve staff morale and legal compliance.

For now, thousands of Glasgow council employees await formal notification, while union leaders continue to rally support and explore legal avenues. The outcome will likely shape how public sector pay reforms are implemented across Scotland in the years to come.