P&O Ferries and Employment Rights

Huw Merriman Excerpts

Monday 21st March 2022 Commons Chamber

[Huw Merriman (Bexhill and Battle) (Con)]

Last Thursday, I spoke in this place and asked the Government to do everything within their power and influence, including tabling emergency legislation if necessary, to ensure that this appalling employment transaction cannot be completed. I agree with Opposition Members—time is of the essence now. The gloves are off. It is very important that we take immediate steps. With that in mind, I have a whole series of questions to put to those on the Front Bench about what we can do within the scope of the redundancy procedure, wages, safety measures, Government commercial bargaining power, and our intent under the maritime 2050 strategy.

A lot has already been said about the redundancy procedure, but the most important point for me is that under section 193 of the Trade Union and Labour Relations (Consolidation) Act 1992, employers who want to make more than 100 people redundant have a duty to notify the Business Secretary of their plans before giving notice to the workers, and they are also required to do so at least 45 days before the dismissals. A failure to comply, as the Transport Secretary said, is a criminal liability. I have read the Business Secretary’s letter. He has given the company until 5 pm tomorrow—Tuesday 22 March—to respond before deciding whether to make a formal complaint to the prosecuting authorities. If he does not get that comfort by 5 pm tomorrow, will the Government immediately and formally issue criminal procedures, which, as the Transport Secretary said, carry an unlimited fine?

My second point is about wages, because the RMT reports that the new crew will be paid £1.80 an hour. I understand that because P&O trades internationally and its ships are not registered in the UK, it is not subject to UK employment law and the requirement to pay the minimum wage. The International Transport Workers’ Federation and the International Labour Organisation’s minimum recommended pay rate for an ordinary seaman is $1.99 an hour. It cannot be right that people who work between the UK and France, where the minimum wages are just short of £9, are being paid only £1.90—approximately 20% of what they should be paid.

My question is whether we are bound by the ITF and ILO rates of that type or whether we can impose our own minimum wage on routes that are clearly serving a domestic market and being crewed by those living here. As has already been asked, is there a difference between domestic routes, such as between Scotland and Northern Ireland, where the minimum wage should apply, and European routes? If we cannot intervene on the ITF and ILO rate, should we make it a legal requirement that routes of the type operated by P&O Ferries must be operated by ships registered in the UK if, in those circumstances, it would be more straightforward to ensure that the employment law and minimum wage rights were as in the UK? If we do not act, we risk other maritime companies following suit to compete in a race to the bottom. We must structure a way out to ensure that employees are paid the minimum wage.

My third point is about safety, which my friend the right hon. Member for Orkney and Shetland (Mr Carmichael) mentioned, and which seems to be the biggest area where we could surely intervene through our agencies. There must be a question as to how using staff being paid £1.80 an hour can meet our strict maritime safety requirements. Employers must ensure that their ships have enough properly trained and certificated officers so that ships can operate safely at all times.

Under the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2015, according to the merchant shipping notice on those regulations, P&O Ferries must:

“Identify the skills and experience required to perform those functions”.

On the face of it, it has just identified the people with those skills and made them redundant. In making that assessment, the following must be considered:

“Hours of work or rest; Safety management; Certification of seafarers; Training of seafarers”.

Paragraph 8.5 of the merchant shipping notice relates to all passenger and roll-on roll-off ships. It expressly says:

“The need to handle large numbers of passengers unfamiliar with the marine environment must be taken into account in determining manning levels.”

Paragraph 11 states that if there are any changes in circumstances, companies will need to apply to the Maritime and Coastguard Agency

“for approval of a new Safe Manning Document under the 2015 Regulations…Ship owners must also inform the MCA of any change in circumstances which are relevant to a Safe Manning Document. The MCA will then review the document’s continuing validity or approve fresh proposals from the owner or operator.”

I heard the Secretary of State on that point, but I will chuck these questions into Hansard.

Will the Government confirm whether a notification of change has been submitted to the Maritime and Coastguard Agency? If so, how will the agency treat the change of seafarer workforce? If a notification of change has not been submitted, will the agency demand one and spell out the sailing sanctions should one not be forthcoming? Will one of those sanctions be that P&O Ferries cannot sail again until the agency has approved? I ask him to ensure that the agency goes in with its usual tough standards to ensure that every single nit-picking area is looked at in that regard. I am sure that we will get some action.

My fourth point is about Government commercial bargaining. P&O Ferries is an entity that has claimed millions in furlough payments. We have been here before with British Airways and we know that money cannot be claimed back, but there is an ethical point here on which the Government must stand. If the Government have legal and commercial powers at their disposal, they must use them immediately and indicate that contracts will be terminated unless P&O reverses its decision. Will they commit to so doing or, if they feel legally stymied, can they publish a legal summary and put it in the House of Commons Library to explain why they cannot act from a legal perspective?

My final point is about maritime 2050, on which, by coincidence, the Transport Committee has launched an inquiry. Its key objectives are to grow our skills base and inspire young people to join maritime. P&O Ferries’ decision will contribute to neither of those key aims. The maritime 2050 document states:

“Historically, the UK has grown much of its own talent and has kept a nucleus of highly trained and highly respected personnel, giving the UK a leading edge in its maritime work both at sea and at home.”

P&O’s decision goes completely against the Government’s desire for maritime 2050. For all those reasons, we need to fight fire with fire. P&O Ferries has disgraced itself, its workforce and this place with what it has done. It is time for us to respond and ensure that it reverses the decision.