P&O Ferries

With permission Mr Deputy Speaker, I would like to make a statement about the developing issue with P&O Ferries. I thank you, Mr Deputy Speaker, for having found time for me to make this important statement.

Earlier today, P&O announced its decision to make around 800 seafarers redundant on several routes across the UK. Let me say right off the bat: the way that these workers were informed was completely unacceptable. I will say more on that in a moment or two. While this is fundamentally a commercial decision for the company, I wanted to come to the House today to inform Members about our latest understanding of the situation and what is now being done.

In taking this decision to make seafarers redundant, P&O has also today informed us that it will be suspending services, for approximately a week to ten days, while it locates new crew. The affected routes are Dover to Calais, Larne to Cairnryan, Dublin to Liverpool and Hull to Rotterdam. I know right across the House will share my concern over the loss of these routes, but I should stress that P&O says they are only temporary and that alternative provision will be provided by other operators, to whom I am extremely grateful.

Passengers will still be able to travel to and from the UK, including across the channel, with freight coming in and out of the country. I understand that DFDS is stepping in to provide alternative services for passengers with valid tickets, and I would like to thank DFDS for its swift action.

However, I must warn travellers that they should expect some disruption over the coming days. I have asked my officials to liaise with the Kent Resilience Forum and the Cabinet Office to closely manage traffic in Kent over the coming days while P&O works to restore services. Today, the Dover TAP—the Dover traffic assessment project—has been activated, although as Members will know that is not all that uncommon, and there is some queuing on Jubilee Way, although the Port of Dover expects this to reduce over the afternoon. I have also asked officials to remain in close contact with other resilience forums around the country, as well as the devolved Administrations, in managing this issue.

Mr Deputy Speaker, we of course have long planned contingencies for such situations and disruption, particularly around the channel, and I do not expect the supply of critical goods and services to be impacted as a result of this decision by P&O, although queues on the way to Dover are more likely to occur at times. Modelling suggests we have sufficient capacity to handle the temporary loss of these P&O ferries.

Let me turn now to the issue of the seafarers. These are hard-working, dedicated staff who have given years in service to P&O. The way they have been treated today is wholly unacceptable and my thoughts are first and foremost with them. Reports of workers being given zero notice and escorted off their ships with immediate effect, while being told cheaper alternatives would take up their roles, shows the insensitive way in which P&O has approached this issue—a point I made crystal clear to P&O’s management when I spoke to them earlier this afternoon.

As I told Peter Hebblethwaite, I am extremely concerned, and frankly angry, at the way workers have been treated today by P&O. As a matter of urgency I have asked my Department to liaise closely with counterparts in the Department for Work and Pensions to ensure that workers are being signposted to the most relevant support, and I am intending to call the trade unions immediately after this statement to discuss the situation with them.

There can be no doubt that the pandemic has had a devasting impact on the finances of many travel companies, including P&O. But while their finances are matters for them, and them alone, I would have expected far better for the workers involved. We will continue to engage closely over the coming days, and I commend this statement to the House.

The action taken by P&O Ferries today is a national scandal—a betrayal of the workers who have kept this country stocked throughout the pandemic. I have heard directly from the crew throughout the day: their lives upended, the jobs they depended on scrapped.

Workers are now left wondering how on earth they will put food on their families’ tables. The management did not even have the decency to tell them face to face: they were told this life-changing news on a pre-recorded video. Images are circulating of what we are told are handcuff-trained security staff, some wearing balaclavas, marching British crew off their ships. This is not a corporate restructure and it is not the way we go about business in this country. It is beneath contempt: the action of thugs.

It is quite simply a scandal that this Dubai-owned company, which received millions of pounds of taxpayers’ money during the pandemic has, without consultation or notice, upended the lives of 800 British workers, all while the profits of the owners, DP World, soared by 52% in the first half of 2021. We need a clear, unequivocal statement from the Government—no ifs, no buts. An overseas conglomerate cannot be given free rein to sack workers in secure jobs here in Britain at the click of a button and replace them with agency staff. The Government must not give the green light to this appalling practice. They must act now to secure the livelihoods of these workers, not signpost them to the Department for Work and Pensions.

This cannot stand. Will the Minister review any and every contract and licence that the Government have with P&O or DP World, to maximise leverage and force them to do the right thing? DP World runs two of the Government’s freeport schemes. Will he consider terminating those contracts? Will he convene urgent talks with P&O and the unions to look immediately at what steps can be taken to safeguard these jobs? Will he confirm whether the Secretary of State received notification, as required under the Trade Union and Labour Relations (Consolidation) Act 1992? Given that neither the workers nor their unions received notification, this action is clearly illegal.

I thank the hon. Member for her comments. She is quite right: lives have been upended and jobs scrapped. My sympathy and thoughts are wholly with the people who had this terrible news this morning. She is absolutely right about the video, which I have seen. I agree. This is devastating news, and to be shown a video on a television screen rather than told the news face to face is not how we expect loyal, hard-working workers to be treated. She mentioned crews being marched off; I have heard the same reports. I expect people to be treated with dignity and respect at all times, throughout their employment.

Employment laws apply, of course. It is difficult for me at the moment to comment in any detail on where that might be. I urge anyone affected to consider legal advice. Clearly that is something that they should do, but it is difficult for me to comment on that, particularly as this is a fast-moving situation.

The hon. Member asked me to review contracts that may exist. I have asked my officials to do that. I apologise, but I cannot give her any details at the moment, although I will be able to provide information to the House in due course if required. Conversations about freeports would have to take place across Government, involving, in particular, the Treasury and the Department for Levelling Up, Housing and Communities. The hon. Lady asked me to convene urgent talks with the unions; I will speak to them this afternoon. It is possible that that will be an initial conversation and then there will be others, but I need no persuading that that will happen. She hon. Lady mentioned illegality. I ought not to go into that, but obviously the Government have a number of concerns, and I urge people to take the advice that they will need.

The hon. Lady asked me to give details of the operations. As I have said, this is a fast-moving situation, but although I am assured that there is not likely to be an operations impact, I will be monitoring that closely. I will give the hon. Lady more details when I have them, and if there are any steps to be taken, I will consider what they should be.

The hon. Lady spoke of setting this in context. I of course reject any suggestion that we have sided with bad bosses. I have made absolutely clear, today and on other occasions, that I expect people to be treated with respect at all times, and that is not the way in which these people have been treated. No one should be treated in the way in which they have been treated today.

Finally, the hon. Lady asked about seafarers. We will continue to do everything we can to support British seafarers, and I hope to be able to give the House more details about that in due course.

I call the Chair of the Transport Committee.

Thank you for allowing the statement, Mr Deputy Speaker. I also thank the Minister for delivering it so robustly.

P&O, that once great flag carrier of the seas, has made an appalling error. If it does not reverse that error immediately, reinstate the employees and follow proper process, it is hard to see a way back for it commercially. The parent company, DP World, needs to understand that the British public will not do business with companies that treat their employees with such contempt. Will the Government do everything within their power and influence, including tabling emergency legislation if necessary, to ensure that this appalling employment transaction cannot be completed?

I thank my hon. Friend for his comments. I repeat that this is a fast-moving situation, and we are reviewing it both as it develops and as it exists. I will certainly review what arrangements exist as we go forward, and I can certainly commit myself to working with all Government Departments to consider what relationships we have with P&O. I will also try to see whether there is anything I can do in the particular circumstances with which we are dealing, although commercial matters affecting a company are primarily a matter for the company itself, within the constraints of employment law. In this country we have high standards of employment law, and we expect those standards to be respected and upheld.

I thank the Minister for advance sight of his statement. Let me add that I agreed with every word that was said by the shadow Secretary of State and the Chair of the Select Committee.

Earlier today I said that the actions of P&O were deeply concerning, but as more information has emerged, it has become clear that those actions were shameful, insensitive and inhumane. The Government responded to the fire and rehire scandal with lip service and warm words, saying that fire and rehire was shameful but stubbornly refusing to back those words up with any legislative action. That inaction has had consequences. What P&O has done today in sacking 800 workers over Zoom with no notice or consultation, and dragging them from their place of work using handcuff-trained private security personnel, is well beyond even fire and rehire. Of course, our primary concern must be for the traumatised P&O staff and their families. People are now jobless, having gone to work as they would on any other day. Will the Minister support the staff who remain aboard P&O vessels, and call on P&O to end its attempts to forcibly remove staff members?

The villain in all this is P&O and its parent company DP World, which is owned by anti-trade union oligarchs in Dubai who have a shockingly bad track record on employment relations. P&O’s plan is for entirely new crews to operate vessels with zero or little time for acclimatisation. Does the Minister not agree that P&O’s aim of resuming shipping with new staff almost immediately is reckless and unsafe? The Prime Minister visited the United Arab Emirates yesterday. Was there any discussion between him and the Dubai Government, the owners of DP World, about P&O?

The Minister said that while this is a commercial decision

“for them, and them alone, I would have expected far better for the workers involved.”

I hear the anger and anguish expressed by the hon. Gentleman, and I know that he speaks on behalf of constituents and others he represents. I would encourage all employers in any event to speak to their hard-working, loyal, long-serving employees. I would certainly urge them to engage with the unions, which I hope would have been spoken to in advance in any such incident that would cause distress to workers and certainly in one such as this. I urge them to do that. On safety matters, this is still an evolving situation and there are clearly safety regulations that have to be applied and complied with in any case, no matter who is crewing a vessel. I would expect that to be the case. Clearly there will be no shortcuts as far as safety is concerned. We will continue to look across Government and speak to colleagues, and to uphold the rights that are clear in law to protect workers.

Does my hon. Friend agree that the way in which P&O Ferries and DP World have acted is shabby, disgraceful and utterly unacceptable? They have mistreated 600 loyal workers in Dover and in addition to this, they have brought traffic disruption and put at risk the economy and the trade routes through it. Will he meet me to discuss what more can be done to hold DP World and P&O Ferries to account for their disgraceful behaviour?

I thank my hon. Friend for speaking out so powerfully and forcefully on behalf of her constituents, who will be anguished, hurt and distraught at the news they have been given today. She speaks for them and I thank her for doing so. I will of course meet her; I will meet any hon. or right hon. Member from anywhere across the House to discuss any concerns that they or their constituents might have. My hon. Friend asks me whether I agree that the way in which P&O has behaved is unacceptable? Yes, it is unacceptable.

Does the Minister acknowledge that my constituency of Canterbury, and east Kent as a whole, will be particularly affected by today’s shocking news? What urgent support will the Government give to all those affected locally, including the hundreds of P&O workers who have been treated disgracefully, as we have just heard, and who are now facing no pay packet at all in the face of the soaring cost of living? They do not want a work coach; they just want their jobs back. That is not to mention the beleaguered residents of east Kent, who will yet again have to bear the brunt of serious disruption to our daily lives. I am glad to hear that the Minister will meet MPs across east Kent; that needs to be done urgently. Thank you.

I thank the hon. Member for speaking out and making her constituents’ understandable anguish so clear in this place. That has been entirely heard by me and I share it. She speaks with anger, and I have expressed that anger in person to P&O today, because of the effect that this news will be having on people living in her constituency and elsewhere, particularly at a time that is already causing much uncertainty for many people. I would be delighted to meet her and any other Members who would like to meet me to discuss what we might be able to do. I referred earlier to some signposting within the DWP. That support is available, and if there are other things that would be helpful, I would be happy to hear from her. She also referred to disruption. There may be some disruption, but the only happy side of that is that we have good, well-rehearsed procedures in place to deal with that. I totally accept this situation will cause inconvenience to her constituents, but I hope that the well-practised routines we have in place will keep that to a minimum.

When I was the shipping Minister, I oversaw the maritime growth study that built on the sector’s success. At its heart was the development of skills to build an even stronger merchant navy. This capricious, careless, callous decision by P&O flies in the face of all that.

Will my hon. Friend work with my old friends in the maritime sector, the RMT and others to recover any moneys granted to P&O during the pandemic and to ensure it reverses its decision? I will not let anyone tell me this is the free market. The free market put little girls in factories and boys down mines, and it put both at risk on the high seas. We thought those dark days had gone. P&O is either too dim to see it or too dastardly to know it.

My right hon. Friend is absolutely right about the skills that have been demonstrated by extraordinary British seafarers over many years. This is key to the Government’s vision of what we want to achieve, and it is particularly important to me personally. We remain committed to doing what we can to support seafarers, and all the strategies the House has heard me talk about, from Maritime 2050 onwards, remain the case. Our focus on maritime skills remains. The Government are still determined to do all we can to develop British seafarers and to continue as a maritime nation, as we have always been. He can be assured that determination remains undimmed.

My right hon. Friend rightly speaks about employment rights, which are extensive in this country. They exist for good reason, they continue and the Government support them.

As the MP for Liverpool, Riverside, I am disgusted by the actions of P&O today. Liverpool is one of the routes that will be affected by this action, and it is another example of fire and rehire by a despicable employer. Why have this Government stood by and ignored it? Actions speak louder than words, Minister, so let us take some decisive action against P&O.

I entirely understand the hon. Lady’s anger on behalf of her constituents. I am acutely aware that they will be affected. I caution her that we do not know all the circumstances yet. We do not know whether this is a fire-and-rehire situation or something else.