[UK] Changes to draft law sought to help seafarers following P&O Ferries scandal

The Trades Union Congress (TUC) has urged the UK government to make crucial changes to legislation planned to help seafarers after the P&O Ferries scandal, The Guardian reports.

The TUC warned that, without the changes, unscrupulous employers could exploit the loopholes that would remain.

P&O Ferries had previously admitted deliberately flouting the law when it sacked 786 seafarers and replaced them with low-paid agency crew in March. The action provoked public outrage and criticism, plus pledges of action from government ministers. However, the Dubai-owned operator reportedly received no fine or sanction, despite its chief executive, Peter Hebblethwaite, telling MPs that P&O had knowingly decided to break labour law.

Ministers instructed the Insolvency Service to consider the case, initially warning that P&O faced an “unlimited fine” but the Insolvency Service decided it could not bring a prosecution.

In July, in response to the scandal, the Department for Transport introduced a seafarers’ wages bill intended to ensure that vessels regularly working in British waters paid at least minimum wage.

Now, following a legal briefing from the Insolvency Service to maritime unions outlining the reasons why P&O was not prosecuted, the TUC has called on the government to close critical loopholes in the legislation.

Frances O’Grady - general secretary of the TUC - said, “The P&O scandal showed us cowboy capitalism at its very worst.

“Despite behaving like corporate gangsters, P&O Ferries has been allowed to get away scot-free because of lax labour laws – and its owner has even registered eye-watering profits on the back of the mass sacking.

“Instead of attacking workers’ right to strike, the government should put in place proper protections for workers who are at the mercy of bad bosses.

“Ministers must use the seafarers bill to close the legal loopholes that allowed P&O Ferries to escape criminal proceedings. Tinkering around the edges won’t cut it.”

P&O Ferries has continued to operate services out of the UK as before. Its owner, Dubai-based DP World, is set to run freeports designed by prime minister Rishi Sunak.

Other operators such as Stena Line have spoken out about the pressure to follow suit in cutting wages, saying that P&O has set an international precedent.

Ms O’Grady said, “Let’s be clear. Without stronger regulation, another P&O-style scandal is on the cards.”

A spokesperson for the Department for Transport said, “We reacted swiftly and decisively against P&O Ferries’ appalling treatment of its staff, announcing a nine-point plan to improve pay and conditions and introducing a seafarers’ wages bill to ensure those with close ties to the UK are paid at least the equivalent to national minimum wage.

“We continue to work with our European neighbours, unions and industry partners to further protect seafarer welfare and pay and we will formally respond to this letter in due course.”

Source: The Guardian

(Links via original reporting)

The Trades Union Congress (TUC) has urged the UK government to make crucial changes to legislation planned to help seafarers after the P&O Ferries scandal, The Guardian reports.

The TUC warned that, without the changes, unscrupulous employers could exploit the loopholes that would remain.

P&O Ferries had previously admitted deliberately flouting the law when it sacked 786 seafarers and replaced them with low-paid agency crew in March. The action provoked public outrage and criticism, plus pledges of action from government ministers. However, the Dubai-owned operator reportedly received no fine or sanction, despite its chief executive, Peter Hebblethwaite, telling MPs that P&O had knowingly decided to break labour law.

Ministers instructed the Insolvency Service to consider the case, initially warning that P&O faced an “unlimited fine” but the Insolvency Service decided it could not bring a prosecution.

In July, in response to the scandal, the Department for Transport introduced a seafarers’ wages bill intended to ensure that vessels regularly working in British waters paid at least minimum wage.

Now, following a legal briefing from the Insolvency Service to maritime unions outlining the reasons why P&O was not prosecuted, the TUC has called on the government to close critical loopholes in the legislation.

Frances O’Grady - general secretary of the TUC - said, “The P&O scandal showed us cowboy capitalism at its very worst.

“Despite behaving like corporate gangsters, P&O Ferries has been allowed to get away scot-free because of lax labour laws – and its owner has even registered eye-watering profits on the back of the mass sacking.

“Instead of attacking workers’ right to strike, the government should put in place proper protections for workers who are at the mercy of bad bosses.

“Ministers must use the seafarers bill to close the legal loopholes that allowed P&O Ferries to escape criminal proceedings. Tinkering around the edges won’t cut it.”

P&O Ferries has continued to operate services out of the UK as before. Its owner, Dubai-based DP World, is set to run freeports designed by prime minister Rishi Sunak.

Other operators such as Stena Line have spoken out about the pressure to follow suit in cutting wages, saying that P&O has set an international precedent.

Ms O’Grady said, “Let’s be clear. Without stronger regulation, another P&O-style scandal is on the cards.”

A spokesperson for the Department for Transport said, “We reacted swiftly and decisively against P&O Ferries’ appalling treatment of its staff, announcing a nine-point plan to improve pay and conditions and introducing a seafarers’ wages bill to ensure those with close ties to the UK are paid at least the equivalent to national minimum wage.

“We continue to work with our European neighbours, unions and industry partners to further protect seafarer welfare and pay and we will formally respond to this letter in due course.”

Source: The Guardian

(Links via original reporting)