A group of Labour MPs has written to business secretary Kwasi Kwarteng urging him to launch legal action against P&O Ferries, amid claims the government had advance notice of the sackings before they happened.
Last week P&O Ferries sacked 800 workers with no notice, apparently going against legislation that requires employers to notify the business secretary if they have plans to make more than 100 people redundant, as well as commence consultation with workers at least 45 days before.
A leaked memo seen by reporters at the Sunday Times, however, suggests that the government did have some advance notice of the sackings last week. A document written by a senior official said the redundancies would ensure the company “remains a key player in the UK market for years to come through restructuring”.
The memo mentioned that staff could be re-employed on “new terms and conditions” and discussed agency staff. It added that the move would align P&O with some of its competitors’ employment practices.
‘Fire and rehire’
The investigation alleges that transport secretary Grant Shapps received a copy and officials in his department knew about the redundancies on Wednesday, a day before the announcement was made to staff.
Employment lawyers have already suggested that the company views the workers as “collateral damage” and has not been put off by the potential cost and reputational fall-out of legal challenges resulting from the lack of consultation.
The memo reportedly said: “We understand that P&O Ferries have an intention to try and re-employ many staff on new terms and conditions or use agency staff to restart routes; they estimate disruption to services lasting 10 days.
“Without these decisions an estimated 2,200 staff would likely lose their jobs. These changes will align them with other companies in the market who have undertaken a large reduction in staff.”
In their letter to Kwarteng, the MPs said: “An employer who fails to provide that notification is committing a criminal offence, and liable to an unlimited fine. It is for you, as secretary of state, to launch that action.” It goes on to ask Kwarteng to explain why the government is not commencing criminal proceedings.
Fire and rehire motion
Today (21 March) Labour will force an emergency vote in parliament on a motion to ban “fire and rehire” practices, where staff are made redundant and then re-employed on less favourable terms and conditions.
Last October, a Bill outlawing the practice failed to receive backing from MPs after Conservative MPs were urged not to back it.
Calling on MPs to “do the right thing”, TUC general secretary Frances O’Grady said: “Ministers have spent the last few days condemning P&O’s actions – now they have a chance to prove they mean it.
“P&O Ferries and its owner DP World have acted without shame. We can’t let them off the hook. No ifs, no buts. MPs must send a strong signal by backing Labour’s motion. Rogue employers need to know they can’t get away with treating workers like disposable labour.”
She added that the P&O scandal had shown the “glaring weakness” in employment rights in the UK.
“We need to make sure this is never allowed to happen again,” she said. “It’s time for the government to finally deliver its long-awaited employment bill to strengthen workplace protections and impose strong penalties on employers who break the law.”
Migrant workers on ‘£1.82 an hour’
Meanwhile Karl Turner, Labour MP for Hull East, has claimed that P&O has been hiring migrant workers on as little as £1.82 an hour, expecting workers to put in 12-hour shifts over an eight-week period.
An RMT union branch secretary has also suggested that eastern European workers were being paid between £2.60 and £2.80 an hour as crew on its Pride of Hull ship that serves the Netherlands.
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Workers cannot afford “decent accommodation”, according to Turner, so end up in poor multi-occupancy accommodation or hostels in Hull . Sources close to P&O and its owner DP World refute these wage claims, however.
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