One of the great puzzles emerging from the last year has been why, in spite of COVID, repeated lockdown, and surging self-isolation, recruitment agencies have seldom been busier.
Employment levels are still rising and unemployment has – so far – not become the scourge many anticipated.
In theory, such a tight labour market should generate increased salaries, and employers’ wage costs should be rising. But, overall, they aren’t.
One explanation is that in the unique circumstances of the pandemic, employers have been forcing new, less favourable, terms on their employees.
Many workers are accepting new terms, knowing that if they don’t they may be dismissed or made redundant and then have to compete for jobs they have done for years – only with less pay and fewer benefits – a practice that has become known as “fire and rehire”.
Advertisement
Employers argue that COVID has accelerated change in the workplace that means that they need new kinds of flexibility from the workforce – over work breaks, or severance packages, for example – or else they will go out of business.
In straitened times, the alternatives, as they see it, are lower wages or fewer jobs.
More from UK
Research by the TUC suggests that nearly one in 10 workers have been asked to reapply for their jobs since the start of lockdown in March 2020, with young people and minorities more likely than most to face the pressure.
Image: BA was accused of using the controversial tactic as it cut jobs during the pandemic
Major disputes have blown up in big employers such as British Airways and British Gas.
Amina Patel, a worker in adult social care in the London borough of Tower Hamlets, told me that for many of her colleagues, currently voting on a strike proposal over the issue, their anger isn’t just about money.
“It’s disrespectful. It makes you angry,” she said.
“The biggest betrayal was being fired and rehired at the height of the pandemic after everything we’d given, and still continue giving.”
Tower Hamlets Council said they “consulted extensively” with staff over changes to terms and conditions and that “no staff are on worse conditions, or pay, or have been dismissed as a result of the changes”.
Labour backbencher and former leadership contender Barry Gardiner has now tabled draft legislation that would make the practice of “fire and rehire” unlawful.
Image: Barry Gardiner says a change in the law is needed to protect workers
He wants to “stop managers intimidating the workforce… and going for the nuclear option right from the beginning. What I want to see is proper negotiation”.
He claims cross-party support, and points to Boris Johnson’s condemnation of employers who use dismissal as a negotiating tactic.
The government has asked ACAS to come up with new guidance for employers, though Mr Gardiner insists that change will only come through legislation.
Either way, research by ACAS makes clear that as furlough and other COVID support measures are withdrawn, the fight over “fire and rehire” is likely to become both more intense and more widespread.
Watch Trevor’s full report on Trevor Phillips on Sunday from 8.30am.
He will also be talking to Housing Secretary Robert Jenrick and Shadow Health Secretary Jonathan Ashworth.
More people than ever are struggling to live on their current income – while just a third say they are living comfortably, according to new research.
Rising prices and sluggish pay increases have put many people’s finances under strain in recent years.
A record 26% now say making ends meet is difficult. Before the pandemic, it was 16%.
Please use Chrome browser for a more accessible video player
2:32
UK inflation slows to 3.4%
Two-thirds also say their incomes haven’t kept up with inflation, according to the British Social Attitudes report.
That’s only marginally better than the 70% recorded during the height of the cost of living crisis in 2023.
Frozen tax thresholds also appear to be hitting home, with 61% saying taxes on low earners are too high, while 44% believe middle income earners also pay too much.
Those figures are up nine points and 13 points respectively since 2016.
More on Defence
Related Topics:
However, when it comes to the highest earners, 44% believe their taxes are too low.
Please use Chrome browser for a more accessible video player
It found support for more spending on disability benefits is at a record low of 45%, down from 67% in 2017 – but only 11% think spending should be reduced.
About 29% of those polled think it’s “too easy” for people to get disability benefits – but the same percentage also feel it’s “too difficult”.
Meanwhile, long waiting times appear to have played a part in the finding that a record 59% are now dissatisfied with the NHS. In 2019, it was just 25%.
Only 21% said they were satisfied with the health service.
Please use Chrome browser for a more accessible video player
3:50
Reeves pledges NHS funding
The report is based on a representative, random sample of more than 4,000 people in the UK and was produced by the National Centre for Social Research.
It’s the longest-running measure of public opinion in Britain, having started in 1983.
Professor Sir John Curtice, senior research fellow, said: “The public are well aware of Britain’s problems – not least those of a failing health service and an economy in which many are struggling to make ends meet.
“Yet rather than turning their back on the state, for the most part, the public are still inclined to look to government to provide solutions.”
Please use Chrome browser for a more accessible video player
1:05
What is NATO’s 5% defence spending goal?
Defence was also a key theme of the report – and researchers found about 40% of Britons support spending more money on weapons and troops.
A fifth (20%) said they would like to see a reduction.
Almost everyone surveyed (90%) considered Russia a serious threat to world peace, followed by Iran (78%), North Korea (77%), Israel (73%), and China (69%).
The percentage supporting more defence spending remains relatively unchanged since 2016, before Russia invaded Ukraine.
However, the share supporting an increase is significantly higher now than that in 2006 (28%) and in the 1990s (17%).
The government has not done enough to ensure all victims entitled to compensation from the Post Office scandal have applied for it, a report has found.
Many current and former postmasters affected by Horizon IT failings and associated miscarriages of justice are not yet receiving fair and timely compensation, according to the report by the Public Accounts Committee (PAC).
Only 21% of the 18,500 letters the Post Office sent to postmasters to make them aware of the Horizon Shortfall Scheme had been responded to, figures provided by the Department for Business and Trade (DBT) show. About 5,000 further letters are expected to be sent in 2025.
Under the scheme, current and former postmasters who were financially affected by the Horizon IT system, but who were either not convicted or did not take the Post Office to the High Court, can either settle their claim for a final fixed sum of £75,000 or have it fully assessed.
There is also the Horizon Convictions Redress Scheme (HCRS), which is for sub-postmasters who had their convictions quashed after the passing of the Post Office (Horizon System) Offences Act last year.
The 800 or so sub-postmasters who are eligible to claim under the HCRS are entitled to a £600,000 full and final settlement, or the option to pursue a full claim assessment.
By the end of March, 339 had accepted the settlement sum, the report by the PAC, which is made up of MPs from all sides of the House of Commons, found.
More on Post Office Scandal
Related Topics:
But the PAC report states that the government has no plans to follow up with people who are, or may be, eligible to claim but are yet to apply.
Please use Chrome browser for a more accessible video player
3:09
‘They knew software was faulty’
The committee recommends that the DBT should outline what more it will do to ensure every affected postmaster is fully aware of their options for claiming.
A third scheme provides compensation to sub-postmasters who were wrongly convicted of fraud, theft and false accounting.
Of the 111 sub-postmasters eligible to claim for the Overturned Convictions Scheme and who are either entitled to a £600,000 full and final settlement, or to pursue a full claim assessment, 25 have not yet submitted a claim, some of whom represent the most complex cases.
The DBT has taken over the management of the scheme from the Post Office, and the PAC report recommends that the department should outline how it plans to handle the remaining cases under the scheme.
Sir Geoffrey Clifton-Brown MP, chair of the PAC, said thousands of people were “deeply failed” by the system during “one of the UK’s worst ever miscarriages of justice”.
He added: “This committee would have hoped to have found government laser-focused on ensuring all those eligible were fully and fairly compensated for what happened.
“It is deeply dissatisfactory to find these schemes still moving far too slowly, with no government plans to track down the majority of potential claimants who may not yet be aware of their proper entitlements.
“It is entirely unacceptable that those affected by this scandal, some of whom have had to go through the courts to clear their names, are being forced to relitigate their cases a second time.”
For more than a year, we have been tracking the flow of sanctioned items out of the UK and towards Russia.
Electronic equipment, radar parts, components used to make aircraft and drones. These are all items that have been banned from going to Russia. For good reason: while Britain is far from a global manufacturing powerhouse, it nonetheless still makes certain prized components used to make machinery.
In some hands, these components could be used for peaceful purposes, but they could also be used to wage war. All of which is why they are among the items sanctioned by G7 nations and banned from entry to Russia.
A glance at the trade figures might lull you into thinking those sanctions have been extraordinarily successful. Look at the flows of these so-called “dual use” goods from the UK to Russia and they drop to zero shortly after the invasion of Ukraine and the imposition of those export bans. But that’s not the whole story – because over precisely the same period, exports of those same items to countries neighbouring Russia have risen sharply.
At this point, the data trail goes cold. As far as the statistics tell us, those components stay in the Caucasus and Central Asia. But there are two powerful pieces of evidence that suggest otherwise. The first is that we have travelled out to the border of Russia and filmed European-sanctioned goods (in this case cars, the hardest of all goods to disguise) passing across the border.
Please use Chrome browser for a more accessible video player
1:20
Zelenskyy: Sanctions needed as countries supplying missile components to Russia
The second is that Ukrainian forces have repeatedly found weaponry and equipment containing European and British components inside them on the battlefield in their country. British technology has been used to kill Ukrainians – in spite of sanctions. That was one of the messages President Volodymyr Zelenskyy relayed in his interview with my colleague Mark Austin.
So, in the wake of that interview, we revisited the databases to see if those flows of goods to Russian neighbours had slowed in recent months.
But, far from slowing, they’ve accelerated. In the past nine months, the flow of dual-use goods to Russian neighbours has risen by an average of 9%, compared with the monthly average between the Russian invasion of Ukraine in 2022 and last June. Those flows are 111% higher than they were before the invasion.
Nor are the flows of British goods to Russian neighbours the only trend suggesting these components are being trans-shipped via third countries. Look at exports of sanctioned items to the United Arab Emirates and Turkey and they are up by a similar proportion.
In short: the evasion of sanctions continues much as it has done since the beginning of the war. For all the talk about the toughest sanctions regime in history, the reality on the ground is somewhat different.