A trade union is calling on John Swinney to impose financial sanctions on Aberdeen City Council over a threat to “fire and rehire” workers.
GMB Scotland started balloting workers in the city on strike action on Monday after the local authority threatened to impose new contracts in a bid to cut wage bills.
Staff are being asked to sign up to standstill wages as part of a move to reduce their working week from 37 to 35 hours and save £5 million.
The council has so far failed to rule out so-called fire and rehire, where an employer dismisses employees and then re-hires them on less favourable terms.
Calls to withdraw funding
In the GMB’s letter to Mr Swinney, seen by the P&J, Louise Gilmour, Scotland Secretary of GMB Scotland, says the “fire and rehire” threat by councils is in clear breach of his government’s “fair work” guidelines.
She confirmed GMB has withdrawn its endorsement of Aberdeen council as a fair work employer.
Ms Gilmour said: “We trust the Scottish Government and related agencies will reflect this in grant funding and procurement decisions.
“It is ironic that an SNP council should be in this position in the year where the Scottish Government intended for Scotland to become a Fair Work Nation.”
She added that fire and rehire is a “bullying ploy which attempts to ride roughshod over workers’ rights.”
Christian Allard, SNP co-leader of Aberdeen City Council, previously told the P&J fire and rehire would only be used as a “last resort”.
Mr Allard’s SNP colleague, Aberdeen Central MSP Kevin Stewart, last week waded into the row.
He urged the SNP and Liberal Democrat administration to take the threat of fire and rehire off the table.
It’s a practice soon to be outlawed in the UK as the Labour government presses ahead with its new Employment Rights Bill.
Unions leaders have warned industrial action could unleash “chaos” on Aberdeen, with bins left to overflow and vital support services for the most vulnerable grinding to a halt.
They say the changes would leave the lowest paid workers on £15 a year would lose over £1,500 a year.
‘The goal is to reach an agreement’
An Aberdeen City Council spokeswoman said: “Dismissal and re-engagement has not been suggested by the council during any consultation, engagement or discussions that have been taking place.
“Whilst it is one possible lawful route to implementing a contractual change, the council would not consider dismissal and re-engagement without having exhausted all possible other routes.
“The goal is to reach an agreement through this consultation process with employees and trade unions, whose feedback has already improved and amended the original proposal.”
A Scottish Government spokesman said: “The Scottish Government opposes fire and rehire practices as part of its fair work first criteria to drive high quality and fair work throughout the labour market in Scotland.
“We engage regularly with local government, including through COSLA, on the importance of Fair Work.”
Conversation