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Glasgow City Council’s “Fire-and-Rehire” Plan Paused After Union Standoff

By Drooid · · How we work

Core Event

Glasgow City Council announced that, without a collective agreement on a new pay-and-grading scheme, it would dismiss all non-teaching staff—more than 23,000 employees—and re-engage them on new contracts effective January 1. The dismissals would be withdrawn if the three unions (Unite, GMB and Unison) agreed to ballot their members on the revised offer.

Background & Context

The dispute stems from an equal-pay case dating back to 2006, when the Workforce Pay and Benefits Review introduced a grading system that left women in catering and cleaning earning up to £3 an hour less than men in comparable jobs. Legal settlements have already cost Glasgow roughly £770 million. After eight years of negotiations, the council approved a new framework on August 20, aiming to bring pay scales into line with equality law.

Timeline

  • August 20 – City Administration Committee approves the new framework (13-9 vote).
  • Early August – Negotiations with Unite, GMB and Unison break down; Unison refuses to ballot its members.
  • Late August – Council announces intention to dismiss and re-hire staff, with letters to be sent the following week and contracts to start January 1.
  • End of August – Deputy First Minister and SNP officials intervene; a pause is agreed and negotiations are set to resume “early next week.”

Data & Statistics

  • 23,000–25,000 non-teaching staff are covered by the proposal.
  • 63 % would see a pay rise or no change; 11 % would face cuts.
  • The steepest individual loss is projected at £11,500 per year.
  • An additional £110 million was earmarked for back-pay and to fund the new scheme.
  • Pay protection for those facing cuts has been extended from six to twelve months.

Official Statements & Responses

  • Chief executive Susanne Millar expressed empathy for staff and said the new contracts would commence the day after existing contracts end.
  • Justice Secretary Neil Gray urged all parties to “get around the table” and emphasized support for “fair work principles.”

Criticism & Opposition

  • GMB organiser David Hume called the threat “beyond the pale” and urged a ballot.
  • Unison Scotland regional organiser Mandy McDowall accused the council of bullying staff with “arbitrary deadlines.”
  • Labour leader Michael Marra described the proposal as “despicable” and likened it to a “Tory playbook.”

Verbatim Quotes

  • “Glasgow City Council must remove direct threats to our membership in its proposed new pay and grading structure whether it is through cuts to terms and conditions, or the scandalous threat of fire and rehire tactics.” — Graham McNabb
  • “There is absolutely time to reverse this. If we can get back around the table, if we can get collective agreement from our three unions then the council will withdraw these dismissal notices.” — Sylvia Haughney, Unison

Conflicting Reports & Gaps

  • Most BBC and Independent accounts cite 23,000 staff, while Herald Scotland and Glasgowlive give a range of 23,000–25,000.
  • Sources differ on whether the £110 million funding had already been secured.

What’s Next

The pause, secured after intervention by Deputy First Minister Allan Casey, allows the ACAS package to be re-opened. Negotiations are slated to resume “early next week,” with unions demanding an improved offer before any ballot. If a collective agreement is not reached before the December 31 deadline, the council could face legal constraints on dismissals as new employment-law changes take effect in January. Unite and GMB have warned they will “enter into dispute” should the council proceed with fire-and-rehire.