Commons Sense

House of Commons · Westminster Hall

P&O Ferries Redundancies

28 March 2023 · 3 other contributors · 4,116 words

Opened by Ian Lavery Lab Blyth and Ashington

Responding minister: Kevin Hollinrake

EmploymentBusiness Compliance

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Ian Lavery raised concerns about p&o ferries redundancies in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about P&O Ferries dismissing staff without prior warning or consultation, with the CEO admitting to breaking the law.
  • The Government has not taken action to penalize P&O Ferries for their actions on 17 March 2022.
  • The Minister agrees P&O Ferries' actions were contrary to UK legislation and that there is a potential 15-year ban on a director if sufficient grounds are found.

Key requests to Government

Asks the Minister why no action has been taken against P&O for their actions on 17 March 2022, to make the seafarers' charter a mandatory requirement, give trade unions a formal role in assessing compliance with standards in the charter, and reform the Insolvency Service to include public interest tests. Also asks about DP World's liabilities to the Merchant Navy Ratings Pension Fund.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Ian Lavery Lab Blyth and Ashington

Concerned about the redundancies at P&O Ferries where staff were dismissed without prior warning or consultation. The CEO admitted to breaking the law but remains in position, and no action has been taken against P&O for their actions on 17 March 2022. Worried about the Government's failure to penalize P&O Ferries and DP World, and the lack of protection for seafarers from nationality-based pay discrimination. The Seafarers' Wages Act is seen as insufficient and not effective until next year.

Other contributors (3)
  • Andy McDonald Lab Middlesbrough and Thornaby East

    Critiqued P&O Ferries' decision to break the law by not consulting unions, replacing workers with agency staff on low pay. Felt the government's response was insufficient, leading to a race to the bottom for UK maritime workforce.

  • Jim Shannon DUP Strangford

    Commemorates the hon. Gentleman for securing this debate, highlighting the importance of addressing employment legislation loopholes and ensuring decent treatment of workers.

  • Margaret Greenwood Lab Mossley and Saddleworth

    Expressed concern about agency crews working unsafe roster patterns, being at sea for up to 17 weeks.

Government Response

Kevin Hollinrake

It is a pleasure to speak with you in the Chair, Sir Gary. I thank the hon. Member for Wansbeck for bringing forward this important debate. The minister agrees that P&O Ferries' actions were disgraceful and runs contrary to UK legislation. While the Government has taken some action already, such as writing to P&O asking it to reverse its decision and initiating an investigation by the Insolvency Service, there is still a chance of a 15-year ban on a director if sufficient grounds are found. The minister notes that new guidelines from ACAS in 2021 stipulate that fire-and-rehire tactics should only be used as a last resort. Currently, there is a statutory code of practice with a 12-week consultation period, and the principle behind this is that there is a 25% compensation uplift in employment tribunals if consultation requirements are not adhered to. The minister acknowledges the need for further action and will keep the issue under review. He also highlights the importance of celebrating good employers while clamping down on bad ones.

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