Labour has called on the government to begin “criminal action” against P&O Ferries after the firm sacked more than 800 of its workers on the spot last week.
Shadow transport secretary Louise Haigh said the government must “immediately” commence criminal action against P&O Ferries “for their flagrant breach of employment law”.
“It should mean unlimited fines, not only for the company but for directors and managers or any of those who are complicit,” Ms Haigh added, stressing that Labour will force an emergency vote on the matter later today.
Answering Labour’s urgent question on the matter in the Commons, Grant Shapps confirmed that P&O Ferries could face criminal action and unlimited fines over its handling of the sacking of its workers.
“It’s been quite clear that it’s been handled by the company absolutely disastrously, which is why we’ve asked the Insolvency Service to look at the notification requirements and consider if further action is appropriate – especially if, as we’re concerned, the relevant notice periods weren’t given, the relative consultation didn’t take place,” the transport secretary said.
“And I can inform the House that that would be a matter for criminal prosecution and unlimited fines as well.”
Labour is calling for all contracts with P&O Ferries owners DP World to be suspended until the matter is resolved.
Government reviewing contracts with P&O Ferries and DP World
Mr Shapps also confirmed the government is reviewing all contracts it has with both P&O Ferries and parent company DP World in the wake of the shock firings.
“The way that these 800 loyal and experienced workers were treated by P&O Ferries last week was shameful and utterly unacceptable,” the transport secretary said.
“Of course we understand the financial pressures that many businesses face right now and regretfully and sometimes redundancies are inescapable, but there is no excuse, no excuse for what we saw occur last Thursday.”
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He continued: “For our part, we’re reviewing all government contracts with P&O Ferries as a matter of urgency and with DP World and, where possible, we’re looking to use other providers if indeed there are any contracts where the UK government is involved; I believe at this point that they have been historic in nature rather than current.
“We’re considering further steps we can take to remove P&O Ferries’ influence from British maritime, including positions on any advisory boards because again I don’t want to see that company, with the way the management has behaved, advising the way that British maritime is shaped and rolls out.”
Shapps: Footage of staff ‘deeply concerning’
Mr Shapps added that the first he heard about the situation was “at about 8.30pm in the evening” through a communication with his private office which indicated that “P&O would be making redundancies the next day”.
He told MPs “it was deeply concerning” to see the footage of staff being forcibly removed from ferries last week.
The Rail, Maritime and Transport (RMT) union, which represented many of the 800 staff fired without notice, has claimed replacement crews are being paid less than minimum wage.
The RMT has alleged that Indian seafarers hired to replace sacked P&O Ferries crews are being paid the equivalent of just £1.81 an hour.
The minimum wage in the UK for people aged 23 and above is £8.91 per hour.
But companies using UK ports often register ships in other countries, allowing them to pay lower wages.
Questions regarding safety of ships
The Maritime and Coastguard Agency has been instructed to inspect all P&O ferry vessels to ensure the new crews are “safe and properly trained”, Mr Shapps told MPs in the Commons.
“Whilst I welcome that P&O is planning to resume ferry operations this week, the safety of shipping remains a top priority and so staff must be experienced and trained to uphold the highest possible standards as the interventions suggested.”
P&O Ferries hit back at claims by unions that its decision to replace staff with agency workers puts the safety of ships at risk.
A spokesman for the company said: “Safety is the utmost priority for P&O Ferries and our crewing management partners.
“They have recruited high-quality experienced seafarers, who will now familiarise themselves with the ships, going through all mandatory training requirements set out by our regulators.
“Safety is paramount in our new crewing management model, which is used by many of our competitors and has been proven to be the most successful model in this industry and the competitive baseline.
Protesters gather to march on Parliament
P&O Ferries informed staff on Thursday that they were losing their jobs due to aims to halve crewing costs.
No sailings have operated since that date.
Protesters gathered outside the London offices of P&O Ferries owner DP World on Monday afternoon, before marching to Parliament.
The company has not commented on the pay of agency workers, but posted on Twitter on Monday morning that services will remain suspended “for the next few days”.
The Department for Transport said: “Ministers and officials have expressed their outrage and frustration at P&O Ferries on their decision and handling of their announcement, and are closely considering the department’s relationship with the company.
“The transport secretary has instructed a total examination of any contract in place with P&O Ferries and DP World across government, and the department is working closely with unions, the Department for Work and Pensions and industry bodies to ensure that workers are supported and signposted to the most relevant support.
“We have serious concerns that their handling may not have followed the correct and legal processes, and strongly urge P&O Ferries to pause the changes announced, and speak with workers to repair the damage caused.”