GMB Union has called on Centrica to permanently take the option to “fire and rehire” employees off the table after the British Gas owner postponed its proposals until January 2021.
In return trade unions have agreed not to ballot for industrial action in October- while Centrica seeks to find a negotiated agreement.
In July Centrica issued HR1 and S.188 notices, which allow it, in a “last resort”, to terminate workers’ contracts and issue new ones with updated terms and conditions.
In the previous month the company said it would be undertaking a major restructure in which 5,000 jobs, the majority of which are managerial roles, would be cut.
Today (8 October) GMB national secretary Justin Bowden accused Centrica bosses of “continuing to hold a box of matches and threatening to set fire to the terms and conditions” of its workforce.
He said: “It is welcome that Centrica management have woken up, smelled the gas and put a pause on their despicable plan. Working with, not against, the workforce and focusing now on serious negotiations that talk about growth not just cuts, is how to address the crisis created by past Centrica leaderships.
“This temporary retreat comes after sustained pressure, condemnation and public and political outcry over the proposal to sack the entire British Gas workforce.
“Make no mistake however, Centrica bosses are continuing to hold a box of matches and threatening to set fire to the terms and conditions of this loyal workforce once the Christmas decorations have come down.
“The company should now do the decent thing and take this fire and rehire threat off the table for good.”
Business, Energy and Industrial Strategy (BEIS) select committee chairman Darren Jones yesterday wrote to the company outlining his concerns over the measures while shadow business secretary Ed Miliband, along with shadow employment rights secretary Andy McDonald and shadow energy minister Alan Whitehead also wrote to Centrica chief Chris O’Shea registering their concerns.
A Centrica spokesperson said: “Transforming and restructuring our business to meet changing consumer demands is difficult – but we must take action to become more competitive and win back customers. We believe reaching an agreement with our unions to modernise our company will unlock the potential to not only protect existing well-paid jobs but also create additional jobs – particularly skilled green jobs – in the future.”
Centrica currently has more than 80 different employee contracts and 7,000 variations of terms, as well has agreements that date back over three decades.
The spokesperson added: “Talks since July remain constructive and we are optimistic that a negotiated settlement can be reached – we have been clear with unions and colleagues from the outset that the s.188 process is an option of last resort if it becomes impossible to reach an agreement.’’