this post was submitted on 12 Sep 2024
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Tesco has lost a high-profile “fire and rehire” case in the UK’s supreme court over proposals by the supermarket to let some staff go and re-employ them on lower pay.

The dispute with the shopworkers’ union Usdawbegan in 2021 and centred on moves to use firings or the threat of dismissal to remove retention payments awarded years earlier to some workers at distribution centres.

The UK’s highest court ruled that Tesco Stores Ltd could not terminate the employment contracts of staff to stop them receiving the retention payments and then rehire them on new contracts without the top-up.

The case has been closely watched because it raises wider questions about the practice of “fire and rehire” and an employer’s right to terminate a contract by giving notice to the employee and then re-employing them on less generous terms.

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[–] NocturnalMorning@lemmy.world 87 points 5 days ago (21 children)

How does anyone have faith in capitalism when stuff like this happens?

[–] AnyOldName3@lemmy.world 34 points 5 days ago (8 children)

Either:

  • They're in denial that this happens (arguably, it didn't happen, as eventually Tesco lost, and they wouldn't know about it in the three years Tesco was winning because The Telegraph/Mail etc. wouldn't report on that).
  • They think worse things would always happen under other systems (e.g. everyone would be a slave of the state and go to gulag if they complained about anything).
  • They don't see it as an inherent problem with capitalism (e.g. simply make doing this illegal, and refuse to let business lobby to reverse the decision, and everything's fine).
  • They think this is a good thing (e.g. the fired workers will be incentivised to work harder, then earn a payrise, and use the extra 10p an hour to start a competing multibillion pound supermarket chain).
[–] toasteecup@lemmy.world 2 points 5 days ago

Or they see this court success as a good thing and that a market will always need careful guidelines to prevent a company from being able to make insanely greedy decisions.

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