Port chiefs resist demand to police new law setting minimum wage for ferry workers
GRANT SHAPPS’S plan for ports to enforce the UK minimum wage on docking ferries risks breaching international treaties, operators have warned.
In an escalating row, port chiefs rejected the Transport Secretary’s planned changes to the law in response to the mass sackings by P&O Ferries earlier this year. Officials from the coastguard or taxman should enforce any rule changes, they said.
Ministers confirmed plans for the Harbours (Seafarers’ Remuneration) Bill in the Queen’s Speech yesterday, forcing ferries that regularly sail in and out of UK ports to pay the national minimum wage.
Ferry operators that refuse to comply with the rules will be banned from docking in UK ports.
The new laws follow the sacking of 800 P&O workers nearly two months ago that sparked a wave of criticism from across the political divide.
P&O, ultimately owned by the government of Dubai, has stood by plans to replace its seafarers with overseas agency staff and pay them almost half the UK minimum wage of £9.50.
Mr Shapps has repeatedly clashed with P&O and its chief executive Peter Hebblethwaite, who has rejected the Transport Secretary’s calls to resign.
Robert Courts, maritime minister, said in a consultation on the Government’s reforms he was “shocked and angered at the treatment of seafarers by P&O Ferries in March”.
Port bosses clashed with Mr Shapps last month when he signalled that they could play a role in enforcing ferry operators’ paying the minimum wage.
But the protests appear to have fallen on deaf ears. Mr Courts said yesterday consultation: “We propose to empower statutory harbour authorities to levy surcharges and ultimately suspend persistent noncompliant operators with support from Government.
“I understand this imposes new obligations on ports, and that some have concerns.”
Richard Ballantyne, chief executive at the British Ports Association responded: “The creation of new rules for ports to regulate ships in such a way is unprecedented. Enforcing the minimum wage is not an area where ports have a core competency. This should be a job for the Maritime & Coastguard Agency or HM Revenue & Customs. Ports facilitate the safe and efficient movement of ships, goods, passengers and maritime activities, safely and efficiently, they are not regulators.
“It remains unclear whether the Bill will achieve the Government’s aims of improving long-standing issues for seafarers. Our initial assessment is that it might not be compatible with the UK’S obligations under international treaties or the current principles which govern our independent ports sector.”
Meanwhile, the owner of the Channel Tunnel has benefited significantly from the P&O scandal. With P&O’S vessels stuck in the port at Dover during April, the number of passengers passing through Eurotunnel rose 450pc to more than 200,000. Shares in Getlink, the French-listed owner of the Channel Tunnel, have risen by more than 11pc since P&O’S sackings on March 17. The company’s stock price hit a record €18.25 last month.