On the first anniversary of P&O Ferries’ sudden mass sacking of 786 seafarers, who were replaced by staff on far less pay and worse working conditions, UK unions have said there was still nothing stopping firms acting in a similar manner.
In addition to a survey by transport union the RMT, the TUC has published a report gauging the government’s response to the sackings, which breached employment laws.
The RMT’s survey shows that hundreds of seafarers have left the industry or have taken early retirement, leaving the ferry and wider UK shipping industry in the midst of a labour shortage.
Some 80% of the sacked ratings at P&O Ferries had worked for the company for over 10 years but 70% were now either unemployed or working in other industries; 80% had reported significant impacts on their mental health.
A third of ratings were still waiting for all or some of their personal belongings to be returned from the ferries on which they worked. Unsurprisingly, the RMT members among the former P&O Ferries workers scored the government’s response to the sackings lowly, giving just two out of 10.
Crocodile tears
RMT general secretary Mick Lynch said the survey results highlighted the “longstanding damage done to our coastal communities and to employment and safety standards in the maritime industry”. He added that P&O-type mass sackings remained a threat for seafarers and accused ministers of shedding “crocodile tears” over the situation.
P&O Ferries scandal
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P&O Ferries chief ‘should step down’ but redundancies expose legal anomalies
Non-disclosure clauses in redundancy agreements have dissuaded former P&O Ferries workers from speaking out over their treatment.
Only one of the workers refused to sign an agreement and took the case to an employment tribunal: John Lansdown, a sous-chef on a cross-Channel ferry.
He won a larger amount than his colleagues gained by signing the redundancy deals but donated his compensation to charity.
The TUC listed four breaches of law by P&O Ferries that had gone unpunished: the duty to consult when making collective redundancies; unfair dismissal of workers; failure to notify the relevant government authorities; and breach of director duties.
It accused P&O Ferries of exploiting loopholes in the minimum wage legislation to pay replacement agency worker crew as little as £5.15 per hour. And a failure to comply with international health and safety standards, jeopardising the safety of seafarers, passengers and the maritime industry as a whole.
The government initially condemned the sackings and, after P&O Ferries boss Peter Hebblethwaite had admitted the illegality of the firm’s actions, demanded he be removed from his post. It also promised sanctions and unlimited fines against the company and said it would introduce legislation to prevent the scenario happening again.
Legislation
A government spokesperson said: “We reacted swiftly and decisively against P&O Ferries’ appalling treatment of its staff.
“Having brought forward legislation to ensure seafarers are paid at least an equivalent to the UK national minimum wage, and establishing a new statutory code to deter ‘fire and rehire’, we are now working with our near European neighbours to further protect their welfare and pay.”
The TUC, however, says the government has reneged on all of its initial pledges to a greater or lesser extent. Martyn Gray, of Nautilus, told the Guardian newspaper: “The bill addresses something that wasn’t really the problem, minimum wage legislation. What P&O did was exploit various loopholes in trade union law.”
Among the government’s initial threats against P&O Ferries was an “unlimited fine”, but the Insolvency Service decided that the firm could not face a criminal prosecution.
The government has subsequently introduced the Seafarers’ Wages Bill, currently awaiting consideration of amendments before receiving royal assent.
The Bill could see a wage floor imposed that is equivalent to the UK minimum wage for work carried out in UK territorial waters (12 miles from the coastline). This will apply regardless of seafarers’ nationality or the ship’s flag.
Loopholes
The TUC maintains, however, there there are “gaping loopholes in the Bill meaning that employers whose ships don’t use UK ports 120 times per year or call at more than one UK port a total of 120 times per year will not fall within scope of the new minimum wage regulations.”
It added: “This will apply to crew on P&O Ferries’ services from Dover, Hull and Liverpool but only in UK territorial waters. Bilateral agreements with governments at the other end of these international routes are being pursued by ministers but these are voluntary agreements and progress has only been made with the French government.”
This meant there was a risk that P&O Ferries’ agency crews would “continue to be worked for dangerously long periods, for pay far below the rates negotiated with unions that P&O Ferries ripped up.”
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The TUC added that threats by the government against P&O Ferries’ parent company DP World had not materialised. Transport secretary Grant Shapps had pledged to review and/or cancel deals with the Dubai-based shipping giant but instead the company is in line to profit hugely from freeports and Ministry of Defence contracts. In effect, the TUC said: “The government is rewarding P&O Ferries for their law breaking.”
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