Seafarers’ Wages Bill [Lords]

Richard Burgon Excerpts

Monday 19th December 2022 Commons Chamber

[Mr Harper]

It is about more than just wages. That was one of the things covered in the nine-point plan, but we are working on other things, including various seafarers’ protections and measures with our international partners. This specific Bill is to deal with the specific issue of what seafarers are paid. The hon. Gentleman is quite right that the issue is wider than that, but the Bill deals with what they are paid. It is focused on that, and I hope it gets the support of the House.

[Richard Burgon (Leeds East) (Lab)]

Can the Secretary of State explain to the House clearly why, in the Bill’s original draft, frequent visits to UK ports was defined as 52 times a year and now it is 120 times a year? That surely makes it far easier for unscrupulous companies to drive through loopholes here and evade paying people the national minimum wage?

[Mr Harper]

We think the definition in the Bill at the moment will capture the vast majority of the services we wish to capture. We think that defining that in the way that we have makes it more difficult for people to avoid than it would be if we were very specific about types of vessels, for example. I am conscious that a number of people wish to speak in this debate, so I will make a bit of progress before taking any further interventions.

We said from the start that where new laws were needed, we would create them, that where legal loopholes—which the hon. Gentleman referred to—were cynically exploited, we would close them, and that we would strengthen employment rights. That is why the Bill is important. Operators of regular services to the UK will be required to pay their crew a decent wage if they want to access our ports, and it will remove the incentive for other, unprincipled firms to drag down pay for seafarers with close ties to the UK.

Under the existing national minimum wage legislation, not all seafarers who regularly call at UK ports are currently entitled to the UK national minimum wage. It cannot be right that seafarers who frequently work in the UK and in our territorial waters are not entitled to the same as other workers simply because they work on an international, rather than a domestic, service. The Bill will fix that particular issue. I recognise that there are other issues that people wish to deal with, but the Bill deals with that. It does not amend the National Minimum Wage Act 1998, but it makes provision for seafarers on services in scope of the Bill to be paid at least a rate equivalent to the national minimum wage.

Since March, we have consulted extensively with the industry to make sure the measures we are discussing are workable. Those discussions have been productive and are continuing. As was just alluded to, the legislation will apply to international passenger or freight services that call at UK ports on at least 120 occasions in a year, which equates to 72 hours on average. Harbour authorities will be empowered to request declarations from operators of services to confirm that they pay their seafarers no less a rate than that equivalent to the national minimum wage. If they do not provide that declaration when requested, harbour authorities will have the power to impose a surcharge, or may be directed by the Secretary of State to do so. It will not be a profit-making exercise for harbour authorities. They may only use the money raised from the surcharge for the discharge of their functions or for provision of shore-based seafarer welfare facilities.

We hope the surcharge is never required. The point of it is to be a disincentive to operators paying low wages. It will be set at such a rate that it does not make financial sense for operators to underpay staff. If they do not pay the surcharge when it is levied, harbour authorities will be empowered to deny access to the port. That will not be an onerous responsibility for harbour authorities; beyond accepting the declarations, they will not be responsible for checking the details of seafarers’ pay. The enforcement role will be carried out by the Maritime and Coastguard Agency, which will undertake inspections and investigations and, if necessary, prosecute offending operators.

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[Mrs Elphicke]

I thank the hon. Gentleman for his intervention. As I have made it very clear, as the Dover MP, I have worked very constructively with the RMT, and particularly with the local branch. What I saw that day was the Labour leader on Zoom, and it seemed to me from that meeting that he was looking for political opportunism, rather than having the interests of my constituents at heart. I am therefore very pleased that so many Members on the Opposition Benches now speak so freely about my constituents, but I urge them to fully support the Bill, and not to seek to create division and engage in shameless political opportunism on what they know is a very specific Bill, as they have already done in the Lords.

[Richard Burgon]

We do not seek to oppose the Bill. We seek to strengthen it and improve it, but I do have a question for the hon. Member. She has repeatedly referred in her speech to “trade union barons”. Will she take this opportunity to make it clear that trade union leaders—of the RMT and other unions—are not barons, because they are elected by their members? Would it not be helpful to stop using this silly, right-wing tabloid language of “barons”? They are not barons. They are elected leaders—elected by many more people than some Conservative Prime Ministers.

[Mrs Elphicke]

I thank the hon. Gentleman for his intervention. I think he has made his point about his choice of language, in the same way that I have made mine.

As we look forward to the Bill going through Committee, I urge Opposition Members not to seek to create division in the name of improvement, when in fact they are making amendments that are outside the scope of the Bill. It is this Conservative Government who are prioritising fair pay and equal rights for our workers on land and at sea. We are applying the minimum wage to ensure that we do not see a race to the bottom of foreign crews and cheap labour, helping to secure the future of the workforce on the short straits.

In Dover, the maritime industry is part of our DNA. I just visited Viking’s Maritime Skills Academy in Dover, which trains seafarers in fire and sea rescue safety. Like a number of local businesses, it has worked really hard to support those in P&O who have lost their jobs, and I pay tribute to all those across my constituency who have come together to help. It is a reminder that, from training to deployment, Dover has a central role in the maritime community. With that central role, I would like to see this Bill accompanied by further international steps to improve the pay and conditions of international seafarers.

The conditions for some international seafarers are nothing short of slavery. That point was very well made by my hon. Friend the Member for Thurrock (Jackie Doyle-Price). We have a moral responsibility to address that. We have taken action to address the use of sweat shops on land in other countries. We must show international leadership in tackling the sweat shops at sea—the shocking conditions for international seafarers, particularly those from poorer countries. We must also go further in completing bilateral agreements with port-to-port European and other counterparts, so as to ensure that standards, safety and training meet the demands of the sea. As I raised with the Secretary of State earlier, it is those bilateral agreements on which we should be focusing the specific needs of the channel routes.

Today’s Bill is one that I strongly welcome. It will help to ensure that the financial incentives that led to the decision-making of P&O Ferries will be neutralised. It will help to avoid the race to the bottom and shore up jobs here in the UK ports. It is an important and focused Bill to plug a gap in employment law to ensure that British workers operating at sea between Dover and Calais will be treated just the same as workers operating in Dover itself.

I would like to finish by saying how grateful I am for the work of a number of right hon. and hon. Friends, in particular my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps) and my hon. Friends the Members for Witney (Robert Courts), for Bexhill and Battle (Huw Merriman) and for Thurrock (Jackie Doyle-Price), who all worked so hard alongside me on this P&O situation, understood it for the disgrace it was and showed determination to push forward on the nine-point plan for action. I know my right hon. Friend the Secretary of State and the Minister will be following through on that to ensure that such a situation cannot happen in the same way again.

This Bill shows it is the Conservative party that is on the side of seafarers. It is the Conservative party that is the party of the workers. It is the Government who support jobs, training and pay to protect British workers, including all those excellent workers at Dover and those who work on the short straits.

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[Richard Burgon (Leeds East) (Lab)]

I have listened to all the contributions with great interest. There is clearly a consensus developing that, although this Bill is a step in the right direction, it is completely inadequate to the scale of the situation seafarers face.

Who can forget those appalling scenes when balaclava-wearing, handcuff-trained security guards were sent on to the ships to remove P&O workers? That was a real wake-up call about the reality of employment law in this country and more widely. What worries me is that the Bill is full of loopholes—ones that will be exploited by unscrupulous employers. Before I was elected as a Member of Parliament, I was for 10 years a trade union lawyer representing workers, including seafarers. Time and again, I saw ruthless employers exploit loopholes in well-intentioned laws and get away with treating workers like dirt. We cannot allow that to go on. Far from the divisive language of the hon. Member for Dover (Mrs Elphicke), we need to work together to improve the Bill.

What are some of the loopholes? I mentioned in an earlier intervention my concern that when the Bill was drafted, frequent use of a port was defined as a ship calling at a UK port 52 times in a year. That has now been increased to 120 times a year. I am still not clear on why that is the case, but it is logical that if we define regular use of a UK port not as 52 visits but as 120 visits, that is a great loophole for port-hopping and for unscrupulous employers to avoid paying the national minimum wage when they should do so.

There is also a lack of legal clarity on whether dismissed P&O workers resided in Britain. The Insolvency Service has still not pursued legal charges against P&O. The TUC rightly says that that loophole continues in the Bill, and it is therefore clear that it must be closed. It cannot be acceptable for this House to be content with a Bill that, following the P&O scandal, does not close the loopholes that allowed P&O Ferries to get away with its behaviour in such a horrific manner.

The Bill does not go far enough on employment protections. We need stronger protections in law. P&O is currently making more savings from the intensive roster patterns forced on agency workers, for example, than it does from paying below minimum wage. It is clear, then, that the national minimum wage provisions in the Bill are not enough on their own, because firms can still undermine workers’ rights if minimum wage protections are not coupled with broader employment protections. We see deductions taken from workers’ pay for their accommodation, for example, which is completely outrageous.

The Bill does not protect all seafarers, by the way, as has already been mentioned in discussion about workers in the offshore renewables sector. If we want, as we do, a future of well-paid, green and unionised jobs that help us to tackle climate change and solve the ongoing energy crisis, we need to ensure that those jobs are well paid, secure and unionised, not part of a race to the bottom. We need to ensure that offshore workers in the green sector have proper protection as well.

As the Bill progresses, I will introduce or support amendments to close legal loopholes and prevent port-hopping—that is essential—and, crucially, to inscribe a seafarers’ charter into law, expand collective employment rights, and ensure that the Maritime and Coastguard Agency has the powers and resources to enforce employment protections. We have already heard in the debate about the conflicts of interest for companies that run ships and have financial interests in ports. We also need the Bill to be changed so that minimum wage rights for seafarers’ working in offshore renewables are equalised with the entitlements for those working in the offshore oil and gas industry.

The Bill needs to be amended and strengthened or it will be a huge missed opportunity, which we cannot allow to happen. We all remember the strong feelings in the country, which were reflected on both sides of this Chamber, about what happened at P&O, but we must ask ourselves these questions. First, is it right that, as we have heard, P&O’s parent company benefits from Government funding to the tune of £50 million for London Gateway freeport? More importantly and more fundamentally, is it right for this House to be content with legislation that is a tiny step in the right direction—that is why we are not opposing it—but does not go far enough?

The Seafarers’ Wages Bill needs vast improvement if it is to be worthy of its name and if it is to prevent what happened at P&O from happening again. If we do not improve it, people outside this House will be very disappointed indeed, because the Bill will not match the speeches made in this House back then and tonight.