P&O Ferries and Employment Rights

Justin Madders Excerpts

Monday 21st March 2022 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

We have heard some excellent speeches today from my right hon. Friend the Member for Hayes and Harlington (John McDonnell) and my hon. Friends the Members for Kingston upon Hull East (Karl Turner), for Middlesbrough (Andy McDonald), for Sefton Central (Bill Esterson), for Brent North (Barry Gardiner), for Wansbeck (Ian Lavery), for Brentford and Isleworth (Ruth Cadbury), for Salford and Eccles (Rebecca Long Bailey), for Easington (Grahame Morris), for Leeds East (Richard Burgon) and for Mitcham and Morden (Siobhain McDonagh).

I pay tribute to my hon. Friend the Member for Mitcham and Morden and her campaigning on this issue over the past six years. She was absolutely right to talk about the work she has done there and the long list of employers that have tried this before, many successfully, highlighting exactly why a change is needed. Time prevents me from mentioning every speech in detail, but I will refer to the speech by my hon. Friend the Member for Kingston upon Hull East—a powerful and deeply personal speech about why this situation matters so much to him. As we heard, he has been campaigning on these issues for years, and surely now we must all regret that the Government have failed to heed his warnings.

My hon. Friend called this action industrial vandalism, and that sums up the situation perfectly. What has happened to P&O workers is nothing short of a scandalous betrayal. Workers with families to support, bills to pay and lives to live had their plans upended in three minutes by an unscrupulous employer acting in the most cynical and calculating way. Every Member of this House should be united in condemning the brutality we have seen: thugs for hire, some wearing balaclavas and carrying handcuffs, turning up to boot people off the ship straight after they were sacked on a three-minute video call. If that is not bad enough, the pariahs responsible for this had already lined up cut-price workers at the dockside to replace them: workers who, let us be clear, are going to be paid at a rate that drives a coach and horses through the minimum wage laws. Those who have been sacked have also been threatened with losing what little compensation they have been offered if they talk to anyone about it, further compounding the sense of injustice they feel and further exposing the bully-boy tactics of their employer.

We need to be clear that this decision cannot stand. Unscrupulous employers cannot be given free rein to sack their workforce, destroying secure jobs and replacing them with cheap, insecure agency work. Such actions must have consequences. Every tool at the disposal of the state must be used to its maximum effect, because if one company can divest itself of responsibility for its workforce in such a callous, cynical and frankly offensive manner without a serious response from Government, then others will see that as a green light to do exactly the same. This must be a line in the sand.

Condemnation, while necessary, is insufficient, and condemnation after the event from a Government who knew it was about to happen is simply not good enough. As we heard from my hon. Friend the Member for Sheffield, Heeley (Louise Haigh), a memo was circulated beforehand that makes it clear that the intention of P&O was to replace staff on lower terms and conditions, and with agency workers.

[Jerome Mayhew]

rose—

[Justin Madders]

I am sorry but I do not have time to give way.

That means that the Secretary of State should have known that this was not an ordinary redundancy situation. The memo also says that disruption was expected to last for 10 days. Why would there be disruption if normal consultation procedures had been followed? The Secretary of State himself said that previous redundancies had been made in the past few years and consultation procedures had been followed, but there was no disruption then, so it was absolutely clear that there was going to be something different this time. Despite those warnings, the Government could not find the time to make one single phone call before P&O went ahead with the sackings, neither to the company nor indeed to the trade unions. All the anguish, distress and heartbreak for these 800 families could have been avoided if Ministers had made the effort to contact P&O before it went ahead with its plan. Having said that, given that their first attempt at letter-writing to P&O after the horse had bolted was addressed to somebody who left the company last year, I do wonder how effective such interventions would have been. As we have heard, the Secretary of State’s big demand of P&O is that it change the name of the ship: absolutely pathetic.

The internal Government memo makes it clear that there is a level of acceptance that these measures are necessary to ensure that P&O can stay competitive, but paying workers well below the minimum wage is not being competitive; it is cheating the system. Sacking permanent staff and replacing them with agency workers is not being competitive; it is yet another example of a big company chipping away at job security and safety just to make a few extra quid.

[Karl Turner]

When I was on King George dock in Hull on Thursday, I met some of the new crew. They did not have a clue what they were doing there. They were told they were joining a brand-spanking-new vessel. They did not know they were there to take jobs. Does my hon. Friend want to say something about safety? Does he think that those new crew have been trained sufficiently—for example, in lifeboat practice and safety at sea? Those courses are absolutely crucial, not least given that a few days from now it is 36 years since the Herald of Free Enterprise went down.

[Justin Madders]

I am grateful to my hon. Friend, who has made another excellent point. There really are serious safety concerns. We have to be absolutely crystal clear that the Government are enforcing all safety checks, because people simply cannot get on to a ship without any experience or knowledge of it beforehand, and that certainly cannot be done with an entire crew while expecting things to run okay.

[Jerome Mayhew]

Will the hon. Gentleman give way?

[Justin Madders]

No, I do not have time—I am sorry.

The memo that the Government issued makes it clear that they are content for companies to ride roughshod over good employment practice. The net result is that bad employers have been emboldened by how little this Government do to protect the rights of workers. They think they can abuse workers and get away with it because for 12 years this Government have allowed exploitative work models to grow unchecked. They have let fire and rehire practices proliferate entirely untouched by legislation. Yes, guidance has been issued by ACAS, but that has not changed the legal position one bit. It has merely restated the existing law, but that law has been shown to be hopelessly unbalanced against the worker, open to abuse, and totally unacceptable in 2022.

The Government have the power to institute criminal proceedings against directors for this—I can assure the House that those P&O staff being sacked last Thursday felt like criminals when they were confronted with security guards carrying handcuffs—but it is those responsible for the decisions who are the true lawbreakers. Exactly how many people in the past have been prosecuted and hit with those unlimited fines? If anyone has been successfully prosecuted and fined for breaching these rules, the Government have kept remarkably quiet about it. Let us hope that this time the threats made to P&O are not empty and the Government follow this right through to the end and actually make some noise about it. If that does not happen, they must understand that they continue to send the message to these bad employers that they can carry on with impunity and that this Government are more interested in protecting their own Back Benchers’ second jobs than everyone else’s first.

On the review of DP World contracts, when will the Minister be able to update the House on the outcome of that? Why are the Government still just considering removing P&O from Government advisory boards? Why have they not done it already? What more evidence do they need that P&O is totally unfit to be part of these bodies? Labour stands firmly with the P&O workers and the work being done by the RMT and north-west unions to stand up for them. Today we are asking all Members to join us in standing up with them and for the rights of all workers, who deserve security and respect in return for an honest day’s work.

This is an opportunity for us to really say what kind of country we want. Insecurity is baked into so many workplaces that it is little wonder that so many people feel a sense of helplessness and inevitability about what has happened in this case. But it does not have to be this way. Job security does not have to be out of reach to millions; it should be the basic cornerstone of any civilised society, and one building block of that has to be an end to fire and rehire.

The destructive combination of weak employment laws, opportunistic employers and an indifferent Government is leading to a race to a bottom, and it is time that race was stopped. It is in all our interests that we have strong workforce protections. A secure workforce is a productive workforce. It is good for employers and good for the economy. It creates a level playing field. Do we really think it is a healthy sign for our economy that the only way businesses think they can get ahead is for their staff to be paid £1.80 an hour and to live in a tent? Is that what we really want as a future for our country? Are we not here to try to improve the lives of the people we represent? Do we not think that security, fair pay and decency in the workplace are central to that?

For too long the pendulum has swung too far away from protection at work and too far into the hands of those who wish to exploit British workers. Changing that is a fundamental part of why Labour Members are here. We should not be bystanders but defenders of working people and workplace rights. If we let this go now, who will be next? Without job security, people have no security. We cannot—we must not—continue to allow the worst excesses of capitalism to stick two fingers up at the workers in this country. It is time that these disgusting practices met their end.

It is time that this place sent out a message—a message that was backed up by the full force of the law. We are not going to be the soft touch of Europe, we are not going to be the easiest of easy pickings for the billionaires who want to boost their profits still further, and we are not going to be a country where loyalty is rewarded with the sack and the race to the bottom is all that matters; we are going to be a country where employment protections have strength and meaning, where security, prosperity and respect run through every workplace like a golden thread, and where those who seek to undermine those values and rules are sent packing. I commend this motion to the House.