Union accuses council of threatening 1,000 staff with fire and rehire

A union has claimed that Devon County Council is threatening almost 1,000 staff with fire and rehire unless they agree to changes to their terms and conditions. 

The GMB union, which represents a significant portion of the affected workforce, made the accusation following the council’s decision to remove the Essential Car User Allowance (ECUA), a benefit previously paid to staff who used their personal vehicles for council business.

The union says that the council’s actions are undermining workers' rights and morale, as it seeks to implement changes without further negotiations. 

The union also stated that the council has informed 834 staff of its plans, and told them to submit before 23 March, or face being given notice of termination of employment on 31 March, with dismissal and re-engagement taking place by 1 July.

However, Devon County Council has defended its decision, describing the move as part of an effort to modernise and equalise conditions across the authority.

The council explained that the ECUA had already been removed by all other county and unitary councils in the South West region. 

The decision to remove the allowance is expected to save taxpayers £500,000. 

The ECUA will be replaced with the standard HMRC mileage allowance, which 85 per cent of the council's workforce already receives. 

Only 15 per cent of staff were in receipt of the allowance before the change.

A Devon County Council spokesperson said: “The essential car user allowance was dated. Only 15 per cent of the council workforce were in receipt of it while others claimed business mileage allowance to reimburse them for business travel. After lengthy discussions with staff representatives, a decision has been made to remove this allowance.

“This decision will save the taxpayer £500,000 and is in line with our mission to deliver a fairer, more efficient, and effective organisation.”

The council also stated that more than 40 per cent of affected staff have already agreed to the change.

However, the council confirmed that those who have not agreed will face dismissal and re-engagement under new contracts, with the changes set to take effect by 1 July 2025.

In response to the council’s stance, GMB Regional Organiser Jake McLean condemned the move, describing it as an attack on workers’ rights: “By threatening our members, Devon County Council is not only undermining morale but also risking the quality of care and support that our community relies on.

“Our members have already rejected this offer; bosses need to understand that and treat our members with dignity and respect.

“It’s time for Devon County Council to put their toys back in the pram, withdraw this threat and return to the negotiating table, so we can solve this issue.

“Our members should have no doubt, we won’t stand for these bully boy tactics, and we will do whatever is necessary to ensure their voices are heard.”

The GMB's criticism follows a broader trend of opposition to "fire and rehire" tactics, which have been used by other high-profile employers in recent years, including P&O Ferries and British Gas.