P&O Ferries and Employment Rights

Gavin Newlands Excerpts

Monday 21st March 2022 Commons Chamber

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

We in the SNP welcome this debate secured by the Labour party, not least because, as the shadow Secretary of State says, there is unanimity on how deplorable P&O’s actions are, but how many times do we have to come to the House to debate the actions of a business before the Government take any action? P&O’s actions have sickened nearly everyone in the country and achieved a rare feat by uniting the Institute of Directors, the TUC, the CBI and the RMT in condemning what happened last week. When even the directors of DP World cannot stomach their company’s actions, with one non-executive director resigning, saying that he

“cannot support the way P&O Ferries has carried out this restructuring”,

it shows just how low the company has sunk. But it is okay, because it might rename some ships!

One small example of P&O’s complete lack of self-awareness came in an email to the remaining 2,200 staff. The P&O chief executive officer said that it was natural for them to be uncomfortable with the media coverage of its actions—not uncomfortable, angry, and deeply anxious about P&O’s crass and inhumane treatment of 800 of their now former colleagues, but with the media coverage. That is institutional arrogance writ large.

[David Linden (Glasgow East) (SNP)]

My Garthamlock constituent Mark Stewart has gone from being a cadet to a chief officer on these vessels. Indeed, he, as a professional seafarer, has experience of working on vessels that are more than 20 years old. May I say to the Government, through my hon. Friend, that my constituent is not worried about the media coverage of P&O. What he is worried about is the idea of people being paid less than £2 an hour to do a job that is very reliant on safety—the very expertise that he has. It would be good if the Government could take that into account and come forward with a much more stringent and robust approach to P&O ferries, which has acted disgracefully.

[Gavin Newlands]

My hon. Friend is not often wrong, and he is right again on this. Sadly, I am not entirely sure that those on the Government Front Bench were listening to the message that he wanted to pass on. Nevertheless, I hope that they will look in Hansard and consider what was said.

I understand that the Secretary of State for Business, Energy and Industrial Strategy wrote to P&O last week asking for further information on its actions with a view to investigating possible breaches of criminal law. I do welcome that, but that investigation must happen as quickly as possible. I fear that shredders and mail servers here and overseas will be allowed to work overtime if delays are introduced. Those involved in this enterprise must be held to account for their actions and for the pain and misery that they have inflicted on P&O staff in this country. I would welcome more detail on the scope and the proposed timescale of that BEIS investigation in the Minister’s summing up.

We have been here before. Those seemingly tough words must be followed with tough action. The Government will not be forgiven if they allow this action to stand unfettered and unpunished. The fact that Ministers and officials knew of P&O’s plans and did not act beforehand to stop it or to minimise disruption is a damning indictment. It was claimed that only a limited number of officials knew about this, but further developments show—and, indeed, the Secretary of State has said this—that the Secretary of State was made aware of it at 8 pm the night before. This is an absolute abrogation of responsibility by the Government.

If P&O wants to squirm out of its obligations under UK employment law by claiming that it is not covered, let it repay every penny that it took from taxpayers, including the ones that it is trying to sack. It took that money while claiming to serve these islands. P&O has pocketed millions from the public purse—over £10 million in furlough payments, and £4.4 million in freight subsidy payments in the early stages of the pandemic. By sacking via Zoom the very same workers whom Government funds supported, P&O is laughing in the Government’s face.

[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.

[Stewart Hosie (Dundee East) (SNP)]

My hon. Friend will have heard the Minister say that because some of this was commercially confidential, he was limited in what he could do or say the night before. When we hear stories about “balaclava-clad security guards” dragging people off ships, surely commercial confidentiality goes out of the window?

[Gavin Newlands]

Absolutely. I thank my right hon. Friend for that point, which speaks once again of how this Tory Government care more about the businesses than the employees. That is at the heart of this particular issue. The truth is—[Interruption.] We are being barracked from the Government Front Bench, but actions speak louder than words.

The truth of the matter is that this is a race to the bottom, pure and simple, with overseas workers on starvation wages and workers here tossed on the scrapheap for having the temerity to expect a decent salary. It is about exploiting the global south for cheap labour, with people shipped thousands of miles from their homes, with virtually no employment rights, and used as pawns by the likes of P&O in their attempts to break UK-based staff.

Over recent years, we have seen how P&O and other shipping companies have made mass use of ILO contracts to pay their staff the bare minimum. I have mentioned able seafarers, but cabin stewards on North sea routes receive £2 an hour and cooks less than £5. It is a scandal that, having driven wages so low across the maritime sector, P&O is now using that as an excuse for its victimisation of loyal, hard-working staff.

Back some quarter of a century ago, when I started my first ever part-time job at a certain well-known fast food restaurant at Glasgow airport, I was paid £2.70 an hour. That was thought of as a low wage even at that time, and it was, but here we are in 2022 and people are asked to move across the world and break their backs for pennies. Since the staff operate from UK ports but work for companies or on boats registered in other countries, they are exempt from the minimum wage legislation that governs the rest of us. That is a disgrace, and something that the Government and international partners must resolve as soon as possible.

It is shameful that this country allows such poverty wages and employment conditions—close to indentured labour—on boats that ply its waters day in, day out. That race to the bottom has meant the loss of hundreds of jobs at P&O and the continued exploitation of hundreds of other people.

[Alison Thewliss (Glasgow Central) (SNP)]

My hon. Friend is making an excellent speech. Many of my constituents have been in touch to express their concerns. Is he also worried about the precedent this sets? City of Glasgow College in my constituency provides excellent maritime education, but what is the point of people’s going into that education if they can be undercut by wages from around the world?

[Gavin Newlands]

I wholeheartedly agree with my hon. Friend. The college will be looking on in horror at the current story, as numbers applying for courses perhaps plummet.

This is modern-day slavery on the high seas and in our ports. It must end. I would like to hear the Minister state that he will take a lead on trying to secure the required changes in international maritime law when he speaks from the Dispatch Box. The role of the agencies involved, Clyde Marine Recruitment, Columbia Shipmanagement and International Ferry Management, must also be called out. They have provided support to this action without telling any of the proposed replacement crew what was happening—in fact, as I heard on BBC Radio Scotland the other day from a Paisley merchant seaman, actively lying to the replacement agency staff.

A former worker who had been working on a P&O vessel just three weeks prior and who had asked for opportunities on non-P&O vessels was told that this was a brand-new vessel that required to be crewed. Agency staff were told nothing while they were holed up in an East Kilbride hotel for three days; in fact, they set up a WhatsApp group called “Mystery Ship”. He and several others walked away when it became clear what was happening. They viewed going on to that ship as tantamount to crossing a picket line.

For the past two years I have worked to end the practice of fire and rehire, with colleagues from across the House. We said to the Government at the start of this problem that if they did not act when British Airways made fire and rehire threats to 30,000 people, more would follow. The Government did nothing. Then British Gas, Weetabix, Marshalls and even Tesco made similar threats. The Government response? A change to the guidance. The actions of P&O go beyond fire and rehire, however; they are a supercharged version, complete with balaclava-clad human resources and handcuff-trained personnel to enforce P&O’s interpretation of employment rights.

We have been forced to hear from the Government Benches for the past six years how Brexit is about taking back control. I ask the Government in all seriousness what control they think they have taken back. Anti-union, human rights-busting oligarchs in Dubai are approving plans to hire private security contractors with handcuffs and balaclavas to physically remove employees from their place of work, so what control have the Government taken back? What improvements have we seen in workers’ rights since the right hon. Member for Surrey Heath (Michael Gove) said in 2019:

“In the Queen’s Speech on Thursday there will be a specific law which will safeguard workers’ rights.”?

There was no sign of that Bill in that speech.

[Craig Mackinlay]

Will the hon. Gentleman give way?

[Gavin Newlands]

If I have to.

[Craig Mackinlay]

That is very kind. The hon. Gentleman is quite right to talk about fire and rehire. Is he going to discuss the issue of Ferguson Marine, with no hire at all? The contracts for the vessels that could have been used for ferries in Scotland are not even being done locally—they are going to Poland, Romania or Turkey.

[Gavin Newlands]

I am delighted that I gave way to the hon. Member, but I am going to move on because that has nothing to do with the current debate.

[David Linden]

Throughout the Brexit campaign we heard the Government talk about the importance of taking back control of our borders, our waters and our laws. Which part of the P&O debacle does my hon. Friend think shows that we are taking back control of our borders, our waters and our laws?

[Gavin Newlands]

The answer is absolutely none of it. [Interruption.] The Secretary of State wants us to move on because he does not want to hear the truth of the matter. We have not taken back any control whatsoever. [Interruption.] Perhaps he could calm down a little.

After my attempts to introduce two Bills to ban fire and rehire that were blocked by the Government, the hon. Member for Brent North (Barry Gardiner) took up the issue. His Bill was talked out by Conservative Members rather than their having to vote, on the record, against a measure that would improve the lives of thousands of their constituents. Time after time Ministers have stood at the Dispatch Box and, in answer to questions from me and others, have told us that legislation is not needed. Indeed, the very last words spoken from the Dispatch Box during the debate on the hon. Member for Brent North’s Bill were:

“we will act and we do not need primary legislation to do so”.—[Official Report, 22 October 2021; Vol. 701, c. 1116.]

Where does that position lie now after this past week? How many companies need to treat their staff like dirt before this Government will act? The Government could bring forward their own Bill this week and have the support of Opposition Members in giving UK workers the same rights as their colleagues across much of Europe. We will be happy to support any measure that stops the duplicitous behaviour of companies like P&O. If the UK Government are unwilling to act, they should allow that power to better our employment legislation to be given to Scotland, with the Scottish Government already committed to banning fire and rehire.

The actions of P&O are shameful, but the blunt fact is that if it thought the UK Government actually took workers’ rights seriously, it would not have dared do what it did. It knows that a Government who waste three years doing nothing after pledging a workers’ rights Bill are not going to seriously tackle DP World and P&O. It knows that a Government who have consistently stuck their fingers in their ears over fire and rehire, and pleaded for employers to be nice, are not serious about protecting staff against bullying management and owners. It knows that unless and until the UK Government get serious about workers’ rights, and understand that they protect not just workers but businesses that play fair, it can do pretty much as it pleases. It is time the Government showed that they are actually interested in levelling up the playing field for workers against companies that have no scruples or basic humanity whatsoever.