Grant Shapps to penalise firms for ‘fire and rehire’ practices

Transport secretary Grant Shapps has set out measures in response to P&O Ferries’ sacking of almost 800 seafarers, including action against ‘fire and rehire’ practices and ensuring minimum wages.

He said he will change the law so seafarers are paid at least the minimum wage and ask HMRC to dedicate National Minimum Wage resources to the maritime sector.

The minister also committed to financially penalising companies which use “fire and hire”, following the controversial summary sackings, with workers replaced by agency staff on an average of £5.50 an hour.

He wil ask British ports to bar access to ferry operators which do not pay the minimum wage and take action against company leaders that break the law.

His pledges come after P&O Ferries’ chief executive Peter Hebblethwaite said the company knew it would be breaking the law by making the seafarers redundant on March 17 without consulting beforehand.

However, the RMT union general secretary Mick Lynch responded by saying: “Despite all the bluster, Grant Shapps has failed to grasp the opportunity to adequately stand up to the banditry behaviour of P&O.

“The prime minister repeatedly said to parliament that the government would be taking legal action save British seafarers’ jobs but he has failed to keep his word.

“This continued lack of action and courage has meant a ferry company owned by the Dubai royal family has been able to break our laws and disrupt our ports and ruin people’s lives with impunity and we will keep pressing the government to ensure justice for our members.

“What has been announced today is far too little, far too late and we are calling for urgent action for speedier more radical reforms to save the UK seafarer from oblivion.”

P&O are acting like pirates of the high sea and its CEO not only admitted in Parliament about DELIBERATELY breaking the law, but had the audacity to confirm it in a letter to me too. (1/3)

— Rt Hon Grant Shapps MP (@grantshapps) March 30, 2022

Outlined his pledges to protect seafarers, Shapps tweeted: “P&O are acting like pirates of the high sea and its CEO not only admitted in Parliament about DELIBERATELY breaking the law, but had the audacity to confirm it in a letter to me too.

“They exploited a weakness in international maritime law to sack 800 workers without notice, and without consultation.

“We are sending a clear message to everyone that if you want to operate in the UK then you have to conduct yourself just like ANY OTHER boardroom. (2/3)

“So today, I have announced 9 commitments to ensure no seafarer working on a ferry in the UK is paid below minimum wage.”