Clarks employees called to strike over ‘fire and rehire’ moves


Clarks employees called to strike over ‘fire and rehire’ moves

Workers at footwear business Clarks staged a demonstration on Tuesday against the ‘fire and rehire’ policy imposed by the business. A group of around 60 staff took part in the action at the company’s Westway Distribution Centre in Street, Somerset. Strike action was agreed necessary by the majority of staff working at the Westway Distribution Centre. Mendip Trades Union Council has stated that the terms that were first presented to workers at the centre include an average reduction in pay from £11.16 to £9.50 per hour, the abolition of paid 30-minute meal breaks and daily 10-minute coffee breaks, as well as cuts in sick pay and redundancy entitlements.

Eva Bryczkowski, a representative of Mendip TUC said there was an “unexpected” level of support for the strike and that some people had been “respectfully” turned away from the site by those striking. She said: “I didn’t expect the amount of support that there was. Every other car was honking their horns in support and waving their arms and cheering to us. It was very encouraging to the people striking. You would think people would not realise what was going on until it was too late but everyone seemed to know what was going on and that it was the workers taking action. They also managed to turn away people from the picket line – very respectfully I should add – including a delivery van. I do think it made a difference.”

Clarks’ was taken over by Hong Kong-based private equity firm LionRock Capital earlier this year, and the company’s new approach of dismissing staff and renegotiating new contracts with them has been widely criticised.

North East Somerset MP Jacob Rees-Mogg condemned the practice in Parliament earlier this year, telling the House of Commons: “Employers threatening to fire and rehire as a negotiating tactic are doing something that is wrong and decent employers do not do. Companies should know better than to behave in this way. All companies operate best when their employees are working there with enthusiasm.”

A Private Member’s Bill aimed at outlawing ‘fire and rehire’ practices is also being brought by Barry Gardiner MP following outcry against the procedure.

Clarks has acknowledged the industrial action being taken at the Westway centre, and said it was “disappointed” at the action being called but said that fire and rehire has always been treated “as the very last resort”.

A spokesperson said: “At our Westway Distribution Centre we continue to consult with employees on proposed changes to employment terms and conditions for all Operatives. It is crucial that Clarks achieves sustainable employment costs, but it is equally fundamental that it achieves fairness between its Distribution Operatives, where differences in hourly rates of pay currently exist. As the consultation process is ongoing, we are disappointed that some employees have voted in favour of industrial action. Right from the start Clarks has taken a constructive and collaborative approach, seeking to reach a compromise and avoid the need to terminate contracts on current terms and offer re-engagement on new terms, which the company has always regarded as the very last resort. We remain hopeful for a constructive conclusion in due course, based on the significant concessions Clarks has made in respect of its proposal of new terms. We can also confirm that the company has contingency plans in place that aim to minimize the impact to our customers as a result of this action.”

The new terms offered to Westway employees reportedly involve around half of the centre’s staff receiving rises in overall pay, and that those subject to a pay reduction will be protected from the effects of this until 2023 by top up payments from the company. Similar industrial action had been threatened by corporate and management staff at the nearby Clarks headquarters, also based in Street, in recent weeks, but these negotiations were a separate matter to those affecting staff at the Westway centre. Clarks said that the staff affected in that branch of its UK operations had not taken industrial action and that 98 percent of staff had agreed to new terms.

The statement from a Clarks spokesperson about the Clarks HQ staff said: “Following a collective consultation with employee and trade union representatives, Clarks has reached a compromise on proposed changes to employment terms and conditions for its UK corporate employees, which include the HQ in Street, Somerset. As a result of the constructive negotiations, Clarks compromised on the proposals originally set out by the company, including the removal of a reduction of holiday entitlement, and improving proposed terms relating to sick pay and maternity pay. Clarks confirms that the vast majority of UK corporate and HQ employees (approximately 98 per cent) have so far accepted the new terms and conditions.”

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