Scots Labour Government whip blasts housing association fire and rehire threat

A senior Scottish Labour MP has criticized a housing association for threatening to ‘fire and rehire’ staff over a pension scheme dispute. Martin McCluskey, who serves as the Labour Government’s Scottish whip, expressed shock that River Clyde Homes was attempting to coerce its employees into changing their pension scheme. The issue arose for workers who are part of the Strathclyde Pension Scheme from before the housing stock transfer from the council. These employees were warned against staying in the scheme, as the housing association claimed it could no longer afford it and intended to transfer about 40 staff to a cheaper alternative.

In response to the refusal by employees and unions to accept the change, the housing association resorted to the tactic of ‘fire and rehire’, threatening to implement the pension scheme change through new contracts. Inverclyde and Renfrewshire West MP McCluskey called on River Clyde Homes to reconsider their approach, stating that no worker should face such threats. He highlighted Labour’s efforts to legislate against these practices and urged the housing association to engage in discussions with staff and trade unions instead. McCluskey emphasized the importance of fair treatment, noting that such actions are usually associated with unscrupulous employers.

River Clyde Homes defended its position, citing financial implications and the need to ensure affordability for tenants and the organization’s long-term sustainability. The housing association claimed to be in an ongoing consultation process regarding alternatives to the current pension scheme for affected employees and committed to open and constructive dialogue throughout the process.

The dispute between River Clyde Homes and its employees over changes to the pension scheme highlights broader issues around fair treatment and communication between employers and staff. It underlines the importance of transparency, consultation, and respect for workers’ rights in such matters. Initiating discussions and seeking mutually beneficial solutions can foster a positive working environment and demonstrate a commitment to upholding workers’ interests and well-being. Efforts to address disputes through dialogue and engagement rather than coercion can lead to more sustainable and harmonious workplace relationships.