P&O Ferries and Employment Rights

Rebecca Long Bailey Excerpts

Monday 21st March 2022 Commons Chamber

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

Last week, we saw one of the most shameful and debased episodes in our industrial history: 800 workers sacked, not because their employer was on the verge of collapse, but because they could be replaced by cheaper labour, and security personnel boarding ships in balaclavas, with handcuffs and Tasers, to remove crew who had given their lives to the company. It is the stuff of a dystopian Hollywood blockbuster, not the actions of a business in our own supposedly civilised economy.

It is important to stress that this is a business that received huge bail-outs from the British Government. Even though the company stated that it had lost over £100 million a year since the start of the pandemic, P&O Ferries actually made declared profits of nearly £63 million in 2020, and DP World, which owns P&O, made a profit before tax last year of over $1.3 billion. What about the poor workers on lower wages whom P&O now proposes to exploit? In some cases, they will be paid below the national minimum wage for much longer periods working at sea.

This whole scandal is not only illegal, but a serious warning to workers everywhere of the consequences of DP World’s strategy of international investment in shipping and logistics, including the Government’s freeports policy, which will allow even more companies to operate in this immoral and scandalous manner.

I truly hope that the Government share the outrage felt by so many Members on all Benches of this House, but I have to say that I am concerned by what I have heard today. The Government knew that this was going to happen, and they did nothing. The Secretary of State now knows what has happened and he can take robust legal action. He also needs to demand that P&O reverses its decision and holds negotiations with trade unions so that the 800 jobs and key supply chain services are reinstated. If that does not happen, the Government should take over P&O vessels as an operator of last resort and remove any Government support for P&O’s owners, DP World, including future contracts, and directly support the retention of P&O jobs instead.

Beyond that, the Government must now introduce legislation to ensure that this can never happen to any other UK workers again, and introduce new laws to protect the long-term future of workers in the maritime industry. There has been a lot of discussion today about the way in which this whole process was managed by P&O, but the fundamental point is that it was engaged in trying to do this in the first place—a profitable company trying to drive down wages and conditions for its workforce because it wants to make even more profit. We cannot stand for that as a democracy. It is up to the Government now: if they have any shred of moral decency, they will act today.