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Daily Mirror
Daily Mirror
Politics
Rachel Wearmouth & Dan Bloom

Tory says government can't stop P&O Ferries sackings despite claims they broke the law

A top Tory today suggested the government can do nothing to stop the P&O Ferries scandal despite a union chief claiming the firm broke the law.

James Heappey said the firm made a “commercial decision” to sack 800 staff with no notice - replacing them with agency staff - over a video call yesterday.

Security guards, some allegedly with handcuffs and balaclavas, were reportedly hired to clear crew from the vessels, said union Nautilus International.

The minister said the firm’s actions were “disgraceful” and “absolutely horrendous”, but told Sky News: “Sadly it is the case that the government cannot force an employer to continue to employ people that the employer has said it doesn’t want to employ.”

The Mirror understands the government is still looking into whether P&O Ferries’ actions were lawful.

Ministers have asked officials to liaise with the Insolvency Service to check if the firm notified it in advance - a legal requirement.

But Mr Heappey’s comments came amid mounting outrage and pressure on Boris Johnson to step in. Labour has written to the Prime Minister demanding he “stands up for loyal workers in Britain”.

  • Since this story was published, the government has said it is looking into whether the firm broke the law. Read the updated story here.

Shadow Transport Secretary Louise Haigh, who is visiting sacked staff at Dover, called on the PM to suspend contracts and licences of P&O Ferries’ owner DP World until the matter is resolved.

She also demanded the company’s removal from the UK Government’s Transport Advisory Group.

Demonstrations against the mass redundancies are taking place at Dover, Liverpool and Hull today.

Firms are required by law to notify the Insolvency Service - and consult with staff - if they plan to make more than 20 staff redundant at a single site.

If there are 20 to 99 redundancies at a site, they must notify the Insolvency Service and start a consultation at least 30 days before the first dismissal.

If there are 100 or more redundancies at a site, they must notify the Insolvency Service and start a consultation at least 45 days in advance.

RMT union general secretary Mick Lynch claimed P&O Ferries had “flagrantly broken the law, deliberately”.

He told LBC’s Tonight with Andrew Marr: “The way you break the law is by not informing the [Business] department or the transport minister - they have to fill out an HR1 form to make redundancies.

“They have to give 45 or 90 days’ notice of that consultation and you work through the trade unions and the reps what you’re going to do about this situation.”

A union source told the Mirror union officials are "99% sure" the action was unlawful, in their opinion, and are looking into the situation.

A man waves a flag during a protest outside the offices of the RMT Union, Dover, who represent the workers of P&O Ferries (SWNS)

Asked again if it was legal, Armed Forces minister Mr Heappey told the BBC : “I’m not absolutely clear on that exact issue you raised, forgive me, my expertise is within the Ministry of Defence.

“But I wasn’t aware there was any suggestion that it was illegal. I think it’s grubby.”

He added: "Ultimately, it is not something the Government can stop P&O from doing. Now the focus will be on supporting those who have lost their jobs."

Meanwhile Boris Johnson faces demands to spell out exactly when he knew about the sackings.

Transport Minister Robert Courts said the government found out about the impending sackings on Wednesday evening.

Mr Lynch fumed: “He knew this last night and didn’t tell anyone.

“The Department For Transport knew this was happening and they knew they were going to break the law.”

RMT union general secretary Mick Lynch said P&O Ferries had “flagrantly broken the law, deliberately” (PA)

P&O Ferries owner DP World is majority-owned by the Dubai Sovereign Wealth Fund and, therefore, ultimately by the Dubai Royal Family.

Last night a minister failed to say if Boris Johnson discussed the issue on a trip to the United Arab Emirates on Wednesday morning.

No10 today said only a tight circle of officials in the Department for Transport knew on Wednesday night, and could not say when the PM found out.

The PM's spokesman denied P&O was raised in his meeting with the Crown Prince of the UAE on Wednesday, though could not immediately confirm the issue did not come up at all, in any way during the trip.

Labour today demanded the Prime Minister answer whether “anyone” raised the issue on his trip to the UAE, of which Dubai is a part.

Shadow Transport Secretary Louise Haigh said: “This was a despicable assault on workers’ rights.

“But British seafarers do not need meaningless platitudes - they need action."

After the PM failed to get an agreement to ramp up oil production, she added: “Boris Johnson went to the UAE with a begging bowl, and as he returned eight hundred British workers were sacked without notice by one of their investment arms.

“The Government must now stand up for loyal workers in Britain being undermined by overseas billionaires.”

Boris Johnson, pictured left with Chancellor Rishi Sunak, is facing demands to step in (Getty Images)

Tory ministers have faced a furious backlash as the scandal erupted just five months after they killed off a bid to outlaw ‘ fire and rehire’.

Labour MP Barry Gardiner tried to ban the practice of firms sacking staff, then hiring them back on worse terms and conditions.

His Employment and Trade Union Rights (Dismissal and Re-engagement) Bill would have made it it easier to fight the tactic at a tribunal.

It would have also restricted firms' ability to vary terms through a contract, and force them to consult on changes for 15 or more employees.

But Tory ministers blocked attempts to force a vote on the Bill, talking beyond a 2.30pm cut-off time under arcane Commons rules.

Mr Gardiner said last night: “The disgraceful actions taken by P&O against their 800 seafarers shows yet again how employers are abusing the laws around fire and rehire.

“The culture of insecurity treats workers as nothing more than a digit on a balance sheet is becoming normalised by both greedy businesses who are emboldened by governments.”

A Whitehall source hit back that P&O Ferries’ actions did not appear to be a case of fire and rehire.

They said instead the firm appeared to be firing staff to hire different people on less money.

Labour MP Diana Johnson said staff were sacked “immediately” to be replaced by “agency staff mainly from overseas”, waiting in buses by the quayside.

"This is shameful and it goes against all norms of fair and reasonable behaviour,” she told the Commons.

“It's clear that foreign ratings will be employed on terms that are less favourable than our current UK seafarers are.

"And this is about a race to the bottom in terms and conditions reminiscent of the worst Thatcherite policies.”

The Tory chair of the Commons Transport Select Committee, Huw Merriman, said the news was "deeply concerning".

"Firing loyal staff and replacing them with cheaper labour sourced from elsewhere is not a model that the public will wear,” he said.

“That model was not acceptable when our national flag carrier airline attempted to adopt it, and it is not acceptable now.”

Announcing the decision on Thursday, the ferry operator, bought by Dubai-based logistics giant DP World in 2019, insisted the decision to cut jobs was "very difficult but necessary" as it was "not a viable business" in its current state.

It said in a statement: "We have made a £100 million loss year-on-year, which has been covered by our parent, DP World. This is not sustainable.

"Our survival is dependent on making swift and significant changes now. Without these changes there is no future for P&O Ferries."

A P&O spokesperson said: “All affected crew who worked yesterday were notified face-to-face and in-person, on board their vessels.

“For crew who were rostered off, P&O Ferries made all efforts to notify them personally: Virtual meetings were held, they were also individually telephoned, plus email and SMS notifications were sent before dismissal letters and severance terms were shared via courier and email.

“For any crew members we did not reach personally despite this cascade of steps, regretfully the news of their dismissal must have come as a shock and we apologise for this."

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