Labour MP John Grady has condemned Glasgow City Council's plan to dismiss and re-engage more than 23,000 workers under a new pay and grading structure, calling the move "shameful" and urging the council and trade unions to return to negotiations.
The Glasgow East MP spoke out after the council confirmed that all non-teaching staff will receive dismissal notices, with replacement contracts due to take effect from 1 January 2027. The dispute follows the collapse of negotiations between the council and GMB, Unite and UNISON over a new pay and grading system.
Grady said:
"Shameful that the SNP council is threatening to ram through fire and rehire before it is made illegal by our UK Labour government."
He added:
"A shocking way to treat working people — and many lower paid women are impacted.
"All parties need to resume talks."
More than 23,000 workers affected
The council says the new structure is needed to replace a pay system that was found to discriminate against predominantly female workers.
Around 63% of affected employees are expected to gain financially, while the council says about 90% will either receive a pay rise or see their salary remain unchanged. Around 11% are expected to lose pay, although transitional protection has been negotiated for those workers.
The dispute is rooted in Glasgow's long-running equal pay battle, which has already resulted in hundreds of millions of pounds being paid in settlements to women who were historically underpaid compared with workers in male-dominated roles.
Unions object to dismissal threat
UNISON has strongly criticised the council's approach, while GMB and Unite had been prepared to consult members on the latest offer.
The council says dismissal notices could still be withdrawn if an agreement is reached and all three unions agree to ballot their members. It argues that negotiations have reached an impasse and that implementing a lawful, non-discriminatory pay structure cannot be delayed indefinitely.
UNISON, however, says workers should not be put under pressure by the threat of dismissal and wants talks to continue before members are asked to vote.
New Labour protections due from January
Grady linked the dispute to the UK Labour Government's reforms of "fire and rehire".
Under the Employment Rights Act 2025, new protections due to take effect in January 2027 will make dismissals for refusing certain contractual changes automatically unfair in most circumstances. Employers will retain a limited defence where they can demonstrate serious financial difficulties and show that the contractual change was unavoidable.
That means the reforms significantly restrict fire and rehire rather than creating an absolute prohibition in every circumstance.
Current rules already require employers to treat dismissal and re-engagement as a last resort, with tribunals able to increase compensation by up to 25% where an employer unreasonably fails to comply with the statutory code of practice.
Glasgow Labour also attacks SNP-Green administration
Grady's comments follow criticism from Glasgow Labour leader Councillor Rashid Hussain, who has called for the council to rule out dismissal, involve ACAS if necessary and negotiate a settlement with unions.
Glasgow Labour argues that the SNP and Greens had an opportunity to rule out fire and rehire when the new grading structure was approved in August but instead chose to proceed. The group nevertheless supports replacing the discriminatory pay system, saying reform should be agreed with workers rather than imposed through dismissal and re-engagement.
Pressure for negotiations to restart
The council argues that implementing a new equal-pay structure is essential after eight years of negotiations. Labour representatives and unions are challenging the method being used to deliver it.
Grady's position is that the equal-pay problem must be resolved, but not by threatening thousands of council workers with dismissal — and he is calling for all sides to return to the negotiating table before the new contracts take effect in January.
