The Government 'should have moved' to stop under-fire P&O Ferries from sacking 800 of its staff in advance, a Greater Manchester MP said. Labour shadow business secretary Jonathan Reynolds, the MP for Stalybridge and Hyde, said: "We cannot allow this to stand because this becomes the template for how these things are done in the UK from now on."
His comments come as the Transport Secretary, Grant Shapps, confirmed P&O could face 'criminal prosecution and unlimited fines' over its handling of the redundancies, with the Insolvency Service examining the matter.
Mr Shapps said: "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."
The ferry giant last week made 800 crew members redundant across its entire fleet to be replaced by agency workers. The company said it was not currently a 'viable business' and was facing losses of around £100m. Ferries have been at port ever since, amid questions over the legality of the redundancies.
The move sparked fury from Greater Manchester MPs with Angela Rayner, Labour's deputy leader, calling on the Government to urgently step in and save jobs and Mike Kane, the Wythenshawe and Sale East MP, blasting 'absolutely disgusting and callous behaviour' after video footage emerged of the moment seafarers were told the news.
Government ministers knew about P&O Ferries' plan to slash the jobs before staff were informed, but were told by officials it would ensure the firm remained 'a key player in the UK market for years to come', the Sunday Times reported.
Mr Reynolds said the Government 'should have moved' to stop P&O Ferries sacking 800 of its staff. He told BBC Breakfast on Tuesday: "I want to know what sort of questions was the Government asking? It was clear when that memo was sent to the Government this was something out of the ordinary and unfortunately, businesses often have to restructure, I wouldn’t expect a Cabinet member to be told of every case of that.
"But to be told yesterday that they did know in advance what was going on, first of all, they should have moved to stop that and they can still move to stop that, it’s no good saying it will help people get jobs who’ve been sacked in this way. We cannot allow this to stand because this becomes the template for how these things are done in the UK from now on."
MPs last night backed a Labour motion condemning the decision of P&O Ferries to sack 800 staff without notice and demanding their immediate reinstatement. The non-binding motion also called on the Government to suspend the contracts and licences of DP World, the owner of P&O Ferries, and to urgently bring forward legislation to outlaw fire and rehire.
They supported the motion by 211 votes to zero, majority 211.
It emerged P&O Ferries vessels will be blocked from sailing if they fail safety checks, the Government said, amid claims Indian seafarers to replace sacked crews are being paid 2.38 US dollars (£1.81) an hour. Transport Secretary Grant Shapps said the Maritime and Coastguard Agency has been instructed to inspect the company’s ferries prior to them being able to re-enter service to ensure the new crews proposed for them are “safe and properly trained”. He told MPs: “If they are not these ships will not sail.”
Sacked P&O workers watched in the House of Commons public gallery as concerns were raised about the ferry operator, bought by Dubai-based logistics firm DP World in 2019, opting to replace the them with cheaper agency staff.
The Rail, Maritime and Transport union (RMT), which represented many of the 800 staff fired without notice last week, said their replacements are being paid well below the minimum wage in the UK.
General secretary Mick Lynch said: “The news that the seafarers now on ships in British ports are to be paid 2.38 dollars an hour is a shocking exploitation of those seafarers and another gut-wrenching betrayal of those who have been sacked. The rule of law and acceptable norms of decent employment and behaviour have completely broken down beneath the white cliffs of Dover and in other ports, yet five days into this national crisis the Government has done nothing to stop it.
“These ships of shame must not be allowed to sail. The Government has to step in now and take control before it’s too late.”
The minimum wage in the UK for people aged 23 and above is £8.91 per hour.
