P&O Ferries and Employment Rights

Louise Haigh Excerpts

Monday 21st March 2022 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

I beg to move,

That this House condemns the decision of P&O Ferries to fire 800 staff without notice and demands their immediate reinstatement; notes that DP World, the owner of P&O Ferries, received millions of pounds of taxpayers’ money during the coronavirus pandemic; calls on the Government to suspend the contracts and licences of DP World and remove them from the Government’s Transport Advisory Group; and further calls on the Government to bring forward a Bill urgently to outlaw fire and rehire and strengthen workers’ rights.

I know the whole House agrees that the action taken by P&O Ferries was a national scandal: 800 British workers sacked with no notice. Today, we learnt that they have been replaced with people earning just £1.80 an hour. This was nothing short of a betrayal of the workers who protected this country’s supply chain during the pandemic. The personal cost to those workers has been profound—some of them have joined us in the Gallery today—and it is with those workers that we should begin.

On Friday, like many colleagues, I stood side-by-side with sacked crew in Dover. There, I spoke to a married couple who had both been employees of P&O Ferries for 14 years. They loved their jobs. They spoke movingly about how P&O felt like a family:

“It sounds clichéd,”

she said,

“but it really was - we lived together, ate together, worked in a small space together. It was our life and we gave it our all.”

The reward for that loyalty? A summary dismissal via a pre-recorded video. Years of dedication ended with them being marched off the ships they lived and worked on by private security guards. They have a four-year-old child that they no longer know how they will feed and clothe. They told me with tears in their eyes that they felt they had been treated like criminals.

This was not a grim Dickensian depiction belonging to another era; this was the United Kingdom in the 21st century. It is nothing short of a scandal that this Dubai-owned company, which received millions in taxpayers’ money during the pandemic, can tear up the rights of British workers, all while its profits soared by 52% last year. That cannot and must not stand. We cannot allow British workers and this country to be taken for a ride.

The truth, however, is that P&O Ferries and DP World did it precisely because they thought they could get away with it. They knew they could exploit the UK’s shamefully weak employment law. They knew the investments the Government have with them would be prized more highly than the livelihoods of 800 people. And they knew that when they did what they did, the Government would not stand in their way. The impotent response so far from Ministers shows that they were right to think that, because, I am afraid to say, when a loyal British workforce was threatened, Ministers completely failed to act.

[Andrew Gwynne (Denton and Reddish) (Lab)]

We stand in solidarity with the sacked P&O workers, but if one company can divest itself of its responsibility to its entire workforce and get away with it, the worry is that this will be the first domino of many. That is why we should not just show our solidarity with the P&O workers but demand justice for them and get this dreadful decision overturned.

[Louise Haigh]

My hon. Friend is absolutely right; that is exactly why the motion calls not only for the reinstatement of workers, but for Ministers to take action to outlaw this practice for good.

What is important is that we now know that the Government had the opportunity to stop this before it happened. They knew before the workers what P&O had planned. I can inform the House that I have come into possession of a memo that was circulated to the Transport Secretary, his private office and, we are told, 10 Downing Street. For the benefit of Members, I am happy to lodge it in the House of Commons Library.

This memo was no vague outline; it was the game plan of P&O. I can reveal to the House that it not only makes it clear that the Government were made aware that 800 seafarers were to be sacked, but explicitly endorses the thuggish fire and rehire tactics that P&O had clearly discussed with the Department ahead of Thursday. There is nothing in this memo at all that expresses any concern, any opposition or raises any alarm about the sacking of 800 loyal British workers. This is the clearest proof that the Government’s first instinct was to do absolutely nothing. There is no use Government Members wringing their hands now; it is here in black and white, and I will happily lodge it in the Library, Mr Speaker, for the benefit of Opposition Members when they are considering how to vote tonight.

[Mr Speaker]

Order. In fairness, that would benefit all Members—if documents are being referred to, all hon. Members need to be able to see them.

[Louise Haigh]

I very much agree.

[Clive Efford (Eltham) (Lab)]

We all stand behind the P&O workers, because it is them today and it will be other workers tomorrow if we do not act. When, for so long, the Tories have stood against regulation that protects workers’ rights, and when they have pushed against the door of fire and rehire and kept it open, they cannot come here wringing their hands and say, “This is a terrible thing.” They have created the environment that has allowed these unscrupulous employers to walk through that door and attack those workers in that way.

[Louise Haigh]

My hon. Friend is absolutely right. Successive Tory Governments have created the conditions that allow unscrupulous employers, such as P&O, to exploit that context. It is clear that the Secretary of State has serious questions to answer.

[Sammy Wilson (East Antrim) (DUP)]

If there is documentation available showing that the Government had prior knowledge of this, it is important that we all have sight of it. What is the date on the document and how long before the event did the Government actually know about it?

--- Later in debate ---

[Louise Haigh]

The text of the memo will be placed in the House of Commons Library. It is reported that this was received on Wednesday night and the memo was sent overnight into Thursday morning.

The Secretary of State needs to answer these questions: when exactly did he see this crucial memo and what was his response? Did anyone in No. 10 acknowledge it? Did they advise on any alternative course of action? Did he or his Ministers seek immediate advice from either the Solicitor General or the Attorney General as to the legality of P&O’s action? Why did he make contact with the boss of P&O only hours after the plan was publicly announced, despite the advance notice that he was given? Given that DP World has been publicly voicing concerns about the sustainability of P&O ferries for at least a year, will he publish all correspondence with it over that period? At what point did he or his Ministers first become aware that this may be a course of action that P&O was willing to take?

Either the Government were bewilderingly incompetent or they were complicit. Either way, there was a window of opportunity to protect the livelihoods of 800 British workers from an illegal act by a rogue employer, and the Government did nothing. For all the outrage that has since flowed from Ministers, the proof is before our eyes. What have Cabinet Ministers actually managed to do? They have written a strongly worded letter to the wrong person and have signposted workers to the jobcentre. The central calculation by DP World that this Government would not lift a finger to stop it has so far been proven right.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

It is not only about the appalling way in which workers are being treated now, but about the future of the whole industry. There were 18 apprentices—the only apprentices being trained on British ratings—sacked among the 800 workers. That decision will have an impact not only today, but for the future of our maritime industry: if it is allowed to stand, we will not have people trained for future generations.

[Louise Haigh]

I thank my hon. Friend; I know that her colleagues in Hull who are in the Chamber today have campaigned long and hard for the maritime industry in this country. She is absolutely right that this is an assault not just on those workers, but on the entire industry in this country.

[Dame Angela Eagle (Wallasey) (Lab)]

The maritime industry, which exists in Liverpool as well as Hull, is precious and we have to fight for its future. The company paid out £270 million in dividends before taking this action. Does my hon. Friend think that the Government must now do all they can to end any association with the freeports and other contracts that P&O has, until it puts this monstrous injustice right?

[Louise Haigh]

I absolutely agree. The Government have significant leverage, both over P&O and over DP World, and they must use it. I will come on to the detail of that point shortly.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The hon. Lady is being very generous with her time and is making a compelling case. The Secretary of State for Transport suggested that the review of contracts by the Government would include DP World as well as P&O Ferries, but yesterday the Secretary of State for Business, Energy and Industrial Strategy appeared to roll back from that. Does the hon. Lady agree that it is critical that DP World be held to account as much as P&O Ferries? It has to be part of that review.

[Louise Haigh]

I absolutely agree. DP World, the parent company, must be held accountable for the actions of P&O—

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Will my hon. Friend give way?

[Mr Speaker]

Order. Will the hon. Gentleman let the hon. Lady answer one point before she takes the next, please?

[Louise Haigh]

As I was saying, I completely agree that DP World needs to be fully responsible for the actions of P&O Ferries. The Government exercise considerable leverage over both companies.

[Mr Sheerman]

I am sorry, Mr Speaker; I had anticipated that my hon. Friend was going to finish her point. She is making an excellent speech. Does she share my concern that when 800 British workers have been sacked in this savage way, there are 10 Members present on the Conservative Back Benches? What would make Conservative Members angry and make them turn up to support British business and British people?

[Louise Haigh]

As my hon. Friend points out, it is a shame that for all the anger and the outrage expressed over the past few days, so few Conservative Members have turned up to participate in today’s debate. But it is not too late: even at this late hour, the Government must hold P&O to account and stand up for the workforce being undermined by overseas billionaires. If an exploitative employer can escape without any consequences for this egregious action, that will give the green light to bad bosses around the world who think they can do the same. As one worker said to me on Friday: “If it can happen to us highly skilled workers in a unionised industry, it can happen to literally anyone.”

The Government must start by immediately commencing criminal action against P&O Ferries for its flagrant breach of employment law. That should mean unlimited fines not only for the company, but for the directors and managers of any that were complicit. It is in the gift of the Business Secretary, under the Trade Union and Labour Relations (Consolidation) Act 1992, to begin that action. He must do it now, and if he will not, he must explain to the public why he will not act to protect British workers.

[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

My great-grandfather and my grandfather served in the British Merchant Navy and were never treated in the appalling and disrespectful way in which this company has treated these people. This is not about where people come from or where they work in the industry. All people who work in the industry should be given trade union rights, should be able to work properly and should be treated as human beings.

[Louise Haigh]

Absolutely—and the sad fact is that these people had a collective bargaining agreement and recognition of their union, but DP World chose to trample over that in full violation of our domestic law.

The Government must take a serious look at their very long-standing relationship with DP World. This is a company that has contracts with the British Government worth billions of pounds, but is apparently confident that it can act with impunity when it comes to respecting our employment rights. The Government must suspend all the licences and contracts that they hold with DP World to maximise pressure and force it to reverse course. Will the Secretary of State confirm that the Government are reviewing all their contracts with both P&O Ferries and DP World? Yesterday, when questioned by the BBC, the Chancellor conspicuously chose to distinguish between those companies and portray them as two different entities. Ministers have spent the last few days condemning P&O’s actions; today they have a chance to prove that they mean it.

As has been said, however, this must be set within a context. That any business feels that it can get away with this behaviour in Britain today is a scandal. It is a damning indictment of weak employment laws and the broken promises to protect workers’ rights.

[Chris Elmore (Ogmore) (Lab)]

My hon. Friend is making a powerful speech, and has rightly drawn attention to the Government’s failure to act consistently. We have, of course, already had a debate on fire and rehire on the Floor of the House, on the occasion when my hon. Friend the Member for Brent North (Barry Gardiner) presented a Bill to ban the practice. Not only did the Government object; they opposed the closure motion that would have allowed the Bill to progress to Report. Conservative Members shake their heads, but they have done nothing about this. Moreover, last Friday, when I supported my hon. Friend when his Bill was read out in the Chamber, they objected again. The Government are all talk and no action, and that is the real problem.

[Louise Haigh]

My hon. Friend is absolutely right. At every available opportunity, Conservative Members have voted against potential legislation to outlaw fire and rehire.

People throughout the country will be asking how it is possible that workers can be bussed in to instantly replace those in secure jobs. Is it not the case that P&O has exploited the immigration loopholes in exactly the same way as it has exploited loopholes in the minimum wage legislation for years, while the Government have sat back and allowed it to happen? This is the exact opposite of the promises made to the British people to safeguard their living standards, employment prospects and job security. In what world is this “taking back control”?

For far too long, Ministers have sat on their hands and chosen to side with bad bosses by failing to strengthen workers’ rights. This must be a line in the sand. If Ministers mean what they say, they will bring forward an emergency employment Bill tomorrow. They will outlaw fire and rehire without delay and strengthen workers’ employment rights, and they will demand that these loyal P&O workers be reinstated. Let there be no more excuses. Tonight, the Conservatives must back Labour’s motion, and send the clear message that no workforce can ever again be attacked in this way.

We are an island nation. British seafaring has been and is the envy of the world, and a sense of fair play and decency runs deep in this country: it is part of who we are. The action on Thursday was a straightforward assault on that tradition and on our values, so deeply entwined with our identity and synonymous with our global reputation. Britain deserves better. Tonight, Tory Members have the chance to join Labour and vote to stand up for British workers. They have the chance to stand up for that tradition, and stand up for the people of this country. They have the chance to ensure that this can never happen again. Tonight, they must decide which side they are on—the side of loyal workers in Britain, or that of the billionaires who are riding roughshod over our rights. I commend our motion to the House.