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In the Commons, Barry Gardiner argues that in addition to being a matter of principle, firing and rehiring is bad for business and the economy.
“The economic argument is critical here, we have to understand that it is moral, but it is also a serious economic failure of this country,” he said. He gives the example of a loss suffered by British Gas Centrica:
Conflicts over fire and re-employment drag on, sometimes for months. During this time, employees often work to rule or refuse to work overtime. When conflict leads to a strike, there can be a huge loss of production. British Gas Centrica is estimated to have lost between £ 30 million and £ 40million in productivity during the conflict. “
He goes on to say that 70% of the companies that engaged in the tactic in the past month are for-profit companies: “It’s not just an ethical issue … it’s also an economic issue that even the most intransigent Treasury officials should recognize “.
“My bill does not prohibit dismissal and rehiring,” said Gardiner, adding that employers ‘and unions’ organizations agree that this could have “perverse consequences and should not be attempted”. He says it is essential that where businesses face collapse, the law does not prevent what may be the only way to preserve those jobs and continue the business.