New law to ensure fair pay for ferry workers
Measures introduced after P&O sacking scandal But ports and unions criticise minimum wage plan
LEGISLATION WILL be brought in to ensure ferry crews receive fair pay and to prevent a repeat of the P&O Ferries row where hundreds of staff were sacked with no notice and replaced by those paid significantly less than minimum wage.
Staff at ports will be given the power to suspend access to ships and firms that do not pay their crews the minimum wage, through the Harbours (Seafarers’ Remuneration) Bill.
The proposals will close gaps in the law used by firms operating in and out of UK ports to pay their crews less than the statutory minimum wage.
On March 30, Transport Secretary Grant Shapps announced nine commitments to protect UK seafarers including ensuring that a fair wage is paid on all ships operating in and out of the country.
It came after P&O Ferries terminated the contracts of 786 of its crew in the UK at a moment’s notice, and replaced them with agency staff.
Transport Secretary Grant Shapps said: “We will stop at nothing to make sure seafarers in UK ports are being paid fairly.
“P&O Ferries’ disgraceful actions do not represent the principles of our world-leading maritime sector, and changing the law on seafarer pay protection is a clear signal to everyone that we will not tolerate economic abuse of workers.
“We will protect all seafarers regularly sailing in and out of UK ports and ensure they are not priced out of a job.
“Ferry operators which regularly call at UK ports will face consequences if they do not pay their workers fairly.”
Business Minister Paul Scully said: “In contrast to P&O Ferries, who have shown utter contempt for their workforce, this Government is firmly committed to ensuring that a fair day’s work gets a fair day’s pay.
“By ensuring that seafarers working on ships which regularly call at UK ports are paid an equivalent to the minimum wage, today’s plans will be a boost for thousands of hardworking staff, while shielding them from any future exploitative actions by rogue businesses.”
However, an industry boss has described the move as “unprecedented” and suggested that ports cannot act as regulators.
Richard Ballantyne, chief executive at the British Ports Association, said: “Enforcing the minimum wage is not an area where ports have a core competency.
“This should be a job for the Maritime and Coastguard Agency or HM Revenue and 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 longstanding 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.
“We will continue to work closely with Government on this to explore options which will enable it to enforce standards across the seafarer community.”
Unions have also shared their concerns.
TUC general secretary Frances O’Grady said the proposals are “feeble and likely unworkable”.
“The Government has done nothing to tackle the most flagrant labour abuse in years by P&O,” she said.
“Only stronger employment legislation that boosts worker protections and stops companies firing on the spot will prevent another P&O-type scandal.”