P&O Ferries and Employment Rights

Andy McDonald Excerpts

Monday 21st March 2022 Commons Chamber

[Grant Shapps]

I directly answered the hon. Gentleman’s question, but that seems to have brought derision, so I think I will make some progress to let the House, the country and those seafarers know what we are doing about this.

On Friday, I communicated my anger to the chief executive of P&O Ferries. I also urged him to engage with the seafarers and trade unions, and offered my support in organising those discussions. It is not too late for those discussions to take place to salvage the situation, so I implore him to do so. The maritime Minister, the Under-Secretary of State for Transport, my hon. Friend the Member for Witney (Robert Courts), also spoke to the chief executive on Thursday and expressed in no uncertain terms our deep disappointment before coming to this House and explaining the Government’s position.

[Andy McDonald (Middlesbrough) (Lab)]

Will the Secretary of State give way?

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[Andy McDonald]

Does the hon. Member agree that time is of the essence, and that the object of the exercise is to get those 800 workers reinstated? Does he get any reassurance from the Secretary of State, or does he share my complete lack of reassurance, that anything will be done to coerce P&O to do the right thing and reinstate those workers?

[Gavin Newlands]

I thank the hon. Member for that intervention. I have always been a glass half full type of guy, but, sadly, I have to completely agree with his interpretation of the situation. I do not see the urgency that is required to deal with this situation. If P&O thinks that it has the right to bring its weight to abuse its staff, the Government should be looking at what weight they can bring against its owners. Why should DP World be allowed within a mile of the London freeport project? It has shown itself to be a company without morals and without a care about regulation or legislation. Why should it be involved in one of the UK Government’s flagship projects? If the aim of freeports is to provide less regulation within each zone, we can have zero faith that even a minimal rulebook will be followed by DP World or any of its companies.

Until the despicable actions of last week are rectified, DP World should not be allowed anywhere near any Government projects or funding. Today we have found out more about how much P&O value its staff—this time, its new staff. Evidence has emerged, as has been mentioned, that those being used to bust workers at P&O may be paid just £1.81 an hour. P&O’s plan is to exploit the maritime employment regulations and give the bare minimum to the staff that it recruits. This means paying the International Labour Organisation minimums of £16.27 a day for an able seaman, or just £3.54 an hour for a cook. That is the reality of what P&O is trying to pull off here. It is plumbing the depths of wage slavery so that it can save a few quid.

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[Andy McDonald (Middlesbrough) (Lab)]

A most remarkable speech from the hon. Member for Dover (Mrs Elphicke).

Millions of people across the country saw in horror the fascistic scenes on social media, with taser-trained security guards with handcuffs boarding P&O ships to forcibly remove workers. It was an abomination. Civil liberties and employment rights may well be trashed in Russia, Saudi Arabia and the Gulf States, but despite this Government’s acquiescence they are still supposed to mean something in the United Kingdom. I am sure many colleagues will rightly focus on the domestic employment law deficits and the whole employment environment that gives rise to such thuggery, while the Government sit on their hands and do diddly squat about it, but I also need to remind the Government of their international obligations.

DP World has—or had—a human rights statement on its website, which states:

“DP World respects and supports the human rights of our employees, our extended supply chain and the broader community around us. DP World releases its modern slavery and human trafficking statement annually. This states our commitment to ensuring that slavery, servitude, forced labour and human trafficking are not tolerated in our global operations or in those of our suppliers.”

Clearly, that does not apply to £1.80 an hour—that is slavery.

DP World goes on to say that its statement has been guided by:

“The Universal Declaration of Human Rights…ILO Declaration on Fundamental Principles and Rights at Work…Guiding Principles on Business and Human Rights; Implementing the UN ‘Protect, Respect, and Remedy’ Framework…The United Nations Sustainable Development Goals”.

This country is a signatory to all those, so let us look at the UN guiding principles, which

“are grounded in recognition of…States’ existing obligations to respect, protect and fulfil human rights and fundamental freedoms;…The role of business enterprises…required to comply with all applicable laws and to respect human rights;…The need for rights and obligations to be matched to appropriate and effective remedies when breached.”

Where on earth is the adherence to those principles?

There are also the OECD guidelines for multinational enterprises, which set out that proper notice has to be given, as does the International Labour Organisation tripartite declaration of principles concerning multinational enterprises and social policy. The best one, however, is the Government’s document, “Good Business: Implementing the UN Guiding Principles on Business and Human Rights”. It boasts:

“The UK was the first country to produce a National Action Plan to implement the United Nations Guiding Principles on Business and Human Rights”.

Where is the action? If there is supposed to be a plan, where on earth does it lead to?

The UN’s global goals for sustainable development speak of taking

“immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking”

and about needing to

“Protect labour rights and promote safe and secure working…for all workers, including migrant workers”—

we have heard little about how the Government will do that.

We all know what will happen: DP World—these bandits, these pirates of the seas—will replace workers with cheap migrant labour from the Philippines and across the world. If the Government will not seize these ships, they should not be allowed to dock. Despite all this, they are still going to allow DP World to run our freeports. We know that these anti-trade union oligarchs will do as they like and take advantage of the industrial-scale corporate welfare that the Government are shovelling their way, with no corresponding benefit for working people who are left to scrabble for whatever benefits they can derive. If that is allowed to happen, I warn the Minister that the working people of this country will not tolerate their abuses and this programme will blow up in their faces. It is indeed time that we took back control—of our jobs, our economy and our key infrastructure, including our ports, to rebalance power in the workplace and deliver the Labour party’s new deal for working people. I support the motion.

[Several hon. Members rose—]

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[Paul Scully]

I will not give way, but that reflects the contribution of the hon. Member for Kingston upon Hull East (Karl Turner), who talked about the agency workers not knowing the vessels. I have no doubt that that will be picked up by the MCA on its inspection.

[Andy McDonald]

Will the Minister give way?

[Paul Scully]

I have not got time, because I want to ensure that I answer the questions before the Opposition Whips inevitably cut me off early.

With my right hon. Friend the Business Secretary, I wrote to the CEO of P&O Ferries on Friday to demand answers and explanations of its decisions and actions. Once we have established the exact facts of the case, we can determine whether employment laws have been broken here in the UK and take necessary further action if needed. P&O Ferries has until 5 pm tomorrow to respond to our questions and I absolutely expect it to meet that deadline. We have also asked the Insolvency Service to look at whether P&O Ferries breached the requirement to notify the Secretary of State in advance of making those redundancies. If we believe that it is in breach, we will not hesitate to take further action.

On fire and rehire, briefly, the P&O Ferries situation, unlike other examples that have been cited in this place over the last year or so, does not appear to be simply fire and rehire. It is worse; it seems to be just “fire”, without the required consultation, the required notice or any definite prospect of further employment—that is, no “rehire”. It appears that hard-working British workers were given no choice and no notice and were instead immediately dismissed. There are reports that they may be replaced by cheaper labour from overseas. As I have said, I have written to P&O to demand that it explains itself. We will determine what further action may be required based on a detailed assessment of the facts of the case.

P&O already has statutory obligations under the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996—both of which were creations of a Conservative Government. It is highly likely that it has breached both under UK jurisdiction. Under sections 193 and 194 of the 1992 Act, any employer proposing to make 100 or more employees redundant has a duty to notify the Secretary of State no less than 40 days before any dismissal will take effect. It has not done that and we demand to know why. The point is that whatever P&O has done appears to be in breach of existing laws within US-UK jurisdiction—it is not because we have not passed new ones.

[Paul Scully]

The sanction for P&O Ferries under that legislation is a criminal sanction and an unlimited fine, so I would be wary of it believing that the sanction is worth it.

[Andy McDonald]

rose—

[Paul Scully]

I am not going to give way.