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Centrica in ‘fire and rehire’ court battle

GMB and Centrica are once again locked in a dispute over the latter’s major restructure plans, with the union claiming the energy company offered payments to thousands of engineers so they would accept worse terms and conditions.

A hearing at Reading Employment Tribunal began on Monday (27 November) and is on behalf of 3,000 British Gas engineers who GMB claims were offered inducements prior to the bitter fire and rehire dispute.

The tribunal will decide whether the payments breached section 145 (b) of the Trade Union and Labour Relations (Consolidation) Act 1992 which prohibits an employer offering inducements to avoid the collective bargaining process.

Andy Prendergast, GMB national secretary, said: “GMB is in no doubt that this offer, made whilst negotiations were ongoing, represented an egregious attempt to attack the trade union which represents more than 90% of British Gas engineers.

“The decision to undertake fire and rehire was a terrible mistake by the business; one that both damaged the British Gas brand and caused terrible worry for loyal, long-standing staff members.

“It was one that cost millions and directly led to the 460 people being fired. Today GMB goes to court as part of our attempt to right that wrong. Winning won’t get our members’ jobs back but it will ensure that British Gas pays for its mistake.

“We are proud to stand by our members and are doing everything in our power to end the disgraceful practice of fire and rehire forever.”

The company’s plans to undertake a massive restructure of the business previously resulted in the longest industrial action seen in Centrica’s history.

The restructure included simplifying contract terms and conditions, many of which contained agreements dating back more than three decades.

In July 2020 Centrica issued HR1 and S.188 notices, which allow it, as a “last resort”, to terminate workers’ contracts and issue new ones with updated terms and conditions.

The company then began talks with several trade unions and the GMB, which represented around 7,000 British Gas engineers, was the last to hold out and subsequently staged 44 days of strike action. In the end, nearly 500 workers were dismissed.

The dispute was declared over in July 2021 after GMB said its workers achieved an “improved” pay deal.

When approached by Utility Week Centrica declined to comment on the matter while there are live court proceedings.