P&O Ferries and Employment Rights

Debate between Laura Farris and Jerome Mayhew

Monday 21st March 2022 Commons Chamber

[Laura Farris (Newbury) (Con)]

What happened to the workers at P&O is one of the most disgraceful examples of industrial practice in my adult lifetime. It speaks not to the weakness of our employment laws but to their strength that the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996 have, for the last 30 years, rendered cases such as this so rare that we are debating one such case in Parliament today. What is extraordinary about this case is not that the laws did not exist, but that P&O, or DP World, thought it could break them with impunity. Let us take a moment to establish what those laws are.

My hon. Friend the Member for Bexhill and Battle (Huw Merriman) spoke about section 193 of the 1992 Act, which provides for a statutory obligation to inform the Secretary of State 45 days before any proposed redundancies could take place. That law has been broken. Section 188 provides for a duty to consult 90 days before any dismissal takes place; that law has also been broken. Section 86 of the Employment Rights Act, on the duty to give notice, and section 98, on unfair dismissal? Those laws too have been broken. The question for the House is why DP World thought it could do that, and the issue, I think, is enforcement.

It is true that failure to notify the Secretary of State is a criminal offence, but I can think of no example in my lifetime in which any criminal proceedings have been brought against any employer anywhere in the United Kingdom since the passing of the 1992 Act. The fact is that a breach of this nature is so rare that parliamentarians have probably not had to worry about it, but none the less we have not insisted on it, and I was glad to hear the Secretary of State say that he would consider enforcing section 194 in this exceptional circumstance.

[Jerome Mayhew (Broadland) (Con)]

Section 194 relates to a summary offence, punishable by a level 5 fine, but the Secretary of State referred to another section which gave rise to an unlimited fine. Does my hon. Friend agree that in such an extreme circumstance as this, the egregious nature of the sackings and the number of people involved would constitute gross aggravating factors in consideration about the size of an “unlimited” fine?

[Laura Farris]

I think that that is correct, and I think that that was what the Secretary of State was alluding to. It is also the case that DP World has obviously concluded that it would prefer to make a severance payment that takes into account the 90-day consultation period, the notice period and the redundancy period, because that is less hassle for them than going into a consultation for 90 days with the RMT and facing strike action.

I will come to my solution in a moment, but I want first to briefly address what Labour Members have said about banning fire and rehire. The hon. Members for Ogmore (Chris Elmore) and for Sefton Central (Bill Esterson) said that the commendable private Member’s Bill presented by the hon. Member for Brent North (Barry Gardiner) would have done that. Let me, with great respect, refresh the House’s memory. The hon. Gentleman said at the time:

“I have no intention in this Bill of banning, and there is nothing in this Bill that would ultimately ban, fire and rehire. There is an important reason for that and I will come on to it in my speech.”—[Official Report, 22 October 2021; Vol. 701, c. 1051.]