Glasgow's Warning: A Failure of People, Not Just Process

When 23,000 contracts are at risk, it's not a legal tactic — it's a catastrophic failure of change management with lessons for every UK employer.

Glasgow City Council has signalled its intent to dismiss and re-engage around 23,000 non-teaching staff in a drastic bid to resolve a long-running and costly equal pay dispute. The move, which would see new contracts issued from January 2027, represents one of the largest and most challenging workforce transformations in recent public sector history.

The decision follows a breakdown in talks with the Unison union, although GMB and Unite had reportedly agreed to ballot members on a separate offer. The council maintains the move is a “precautionary” necessity to implement a new, non-discriminatory pay and grading system, which it states will end historic inequalities and see pay rise or stay static for 90% of affected staff. Yet, despite reassurances, the use of dismissal notices has understandably triggered significant concern and drawn condemnation from unions and political figures, setting the stage for a profound crisis in employee relations.

Beyond the Legalese: A Crisis of Trust

While the council frames this as a procedural step to avert further legal challenges, any HR practitioner sees it for what it is: a monumental failure of change management. The term ‘fire and rehire’, though legally distinct, has become toxic. Using dismissal and re-engagement as a tool, even with the promise of a new job for all, shatters the psychological contract between employer and employee. It communicates that, when push comes to shove, people are components in a legal puzzle, not valued partners in a shared enterprise. This is the stark reality behind the UK's new statutory code on the practice, which aims to prevent employers from using the threat of dismissal as a negotiation tactic. You can read our analysis on the end of fire and rehire and what's next for UK employers.

The focus on the 10% who may lose out financially misses a wider point. The anxiety and uncertainty inflicted on the entire 23,000-strong workforce, and their families, is immeasurable. A promise of re-engagement does little to soften the blow of a dismissal notice. This is a moment that demands exceptional employee support during redundancy, even if it isn't a traditional redundancy scenario. The feelings of shock, betrayal, and instability are identical. The council has fundamentally underestimated the human impact, prioritising a legal ‘fix’ over a sustainable, people-led solution built on trust and genuine consultation.

The Commercial Read: Your Audit Starts Now

For any leadership team watching this unfold, the lessons are immediate and stark. This situation is a flashing red light for any organisation, public or private, that has put off tackling systemic issues like pay inequality, outdated contracts, or festering industrial relations disputes. The council’s £505 million settlement in 2019 for historic claims was not the end of the problem, but a symptom of it. The true cost is now escalating through reputational damage, plummeting morale, and the inevitable productivity loss that follows such a profound breakdown in trust. Similar large-scale restructures show that the cultural fallout can be devastating, a point we explored in Diageo's Cuts: A Lesson in Transition.

A sensible leadership team should see this as a prompt to act now. First, conduct a thorough, honest audit of your own pay and grading structures. Are there latent risks that could explode into a multi-million-pound liability? Second, when planning any form of restructure support, budget for the human element from day one. Leaders often ask, how much does outplacement cost, but the better question is, what is the cost of not providing proper support? The investment in expert communication, consultation, and compassionate outplacement services for employers is fractional compared to the cost of organisational paralysis and reputational ruin.

Waiting for a problem to become a crisis is not a strategy; it is an abdication of leadership.

This case demonstrates the critical need for proactive workforce planning and redundancy consultation support long before a crisis hits. The goal must be to build a resilient, adaptable organisation where change can be managed through dialogue, not by decree. This involves investing in the communication and leadership skills of line managers, who are on the frontline of implementing any change, and ensuring they have the tools and backing to handle difficult conversations with empathy and clarity.

Navigating Complex Workforce Transition

Ultimately, every large-scale organisational change is a test of culture and values. How an employer treats its people during periods of immense uncertainty defines its character for years to come, affecting its ability to retain and attract talent. Providing robust redundancy support for employees is not just for those who might leave; it sends a powerful message of care to those who remain, helping to stabilise the workforce and rebuild trust.

For organisations navigating these complex transformations, providing expert support is non-negotiable. ImaginativeHR partners with employers to deliver compassionate and effective workforce transition services, ensuring every individual is treated with respect. Modern career transition services, delivered through platforms like Launchpad, provide the scalable, personalised coaching and resources that help organisations manage the immense human impact of change and empower people to face their future with confidence.