Wearside MP challenges Prime Minister Boris Johnson over Centrica ‘fire and re-hire’

Washington and Sunderland West MP Sharon Hodgson has slammed British Gas owners Centrica during an exchange in the House of Commons with Prime Minister Boris Johnson.
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Appearing by video in what was possibly the final Prime Minister’s Questions of 2020, Mrs Hodgson hit out at Centrica’s “fire and re-hire” policy.

Mrs Hodgson said that highly skilled engineers at Centrica/British Gas in her constituency were told last week that they had to sign new contracts before Christmas, or else they would be fired and re-hired in the new year on worse terms.

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Earlier this year Centrica chief executive Chris O’Shea announced there would be 5,000 redundancies, most of which would be in the UK. They have around 20,000 UK employees.

Centrica also made an £849m loss in the year ended December 31, 2019, compared with a £987m profit the previous year. The company blamed the loss on the energy price cap and falling gas prices.

In June the firm’s chief executive also announced that 5,000 jobs would be shed.

Members of the GMB union at British Gas are voting on industrial action in a ballot which closes on Thursday, December 17.

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Mrs Hodgson said in the House of Commons: “Fire and re-hire is an exploitative and illegitimate negotiation tactic and causes real hurt and anger.”

Washington and Sunderland west MP Sharon Hodgson challenged the Prime Minister on Centrica. Photos JPI/Stefan Rousseau/PA Wire.Washington and Sunderland west MP Sharon Hodgson challenged the Prime Minister on Centrica. Photos JPI/Stefan Rousseau/PA Wire.
Washington and Sunderland west MP Sharon Hodgson challenged the Prime Minister on Centrica. Photos JPI/Stefan Rousseau/PA Wire.

She asked Mr Johnson: “Will the Prime Minister join me in calling on Centrica to withdraw its threat and return to the negotiation table with workers and their union, the GMB? And will he work with Labour and the trade unions to introduce legislation to ban fire and re-hire as soon as possible?”

The Prime Minister said he agreed “that businesses treat their employees with fairness and respect” and that he shared Mrs Hodgson’s point of view.

However, he added: “But it’s also vital that we have a flexible economy that is able to also generate jobs - particularly when we are going to be going through a very difficult and bumpy time.

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“We have a proud, proud record of keeping employment high, keeping unemployment low in this country and we want to continue with that approach.”

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