P&O Ferries and Employment Rights — House of Commons, 2022-03-21
Topic: Labor
Jerome Patrick Burke Mayhew (Conservative, Centre-right): I wanted to take part in this debate because I wanted there to be a united front in condemnation of P&O’s tactics in firing 800 seafarers without notice via Zoom last Thursday. I watched that Zoom video, which was extraordinary and amateur. It thanked staff for their service while sacking them with immediate effect and without notice. The motion condemns the decision of P&O to fire 800 staff without notice and demands their reinstatement. Despite the anger among Opposition Members, I think that this is a case of us furiously agreeing with each other, because we have shared overriding objectives. We must try to get those seafarers reinstated, and it is only if we cannot achieve that first objective that we should move on to secondary objectives, including making sure that this tactic is not seen to work either for DP World/P&O or as an example for other employers. It is really important that we set a standard and make a stand. It is quite right that through this debate—I congratulate the Opposition on calling it—we maximise public pressure on DP World to reconsider The Maritime and Coastguard Agency also needs to make absolutely sure that the re-manned vessels comply with all safety regulations. That means physical inspections and crew-related training and safety drills. No benefit of the doubt or leeway should be given to this business. I am not suggesting adopting discriminatory behaviour towards the company. However, if a company has lost the trust of the Government and of the public, it should be up to it to prove compliance I welcome the announcement that the Insolvency Service is being asked to look into the potential for a criminal prosecution and an unlimited fine. I have already mentioned that in an earlier intervention. It is also right that the Government immediately instructed officials to review all Government contracts. I understand that the Government must comply with any legal relationships that they have already entered into, but thereafter there should be no further positive relationship with a company that has forfeited its good name. The company I have in mind is DP World, not just P&O Ferries. P&O took the decision to follow the money. We need to challenge and change that calculation, to make sure that the sums for this act no longer add up We have to recognise that the business losses of P&O Ferries have been substantial and over a prolonged period. It is losing more than £100 million a year on an annual turnover of not much more than £600 million. That is unsustainable in the long run, even with a profitable parent company. The answer may be that a restructure is the only way to prevent the loss of the entire business, leading to many more—an additional 2,000—job losses. My complaint is not necessarily about the business decision to restructure, but about the manner and approach of P&O Ferries. There is no immediate and catastrophic change in circumstances—it has been like this for the past couple of years. There is and there has been time for notice and for consultation. There has been and there is time to work with staff to at least try to agree a route back to sustainable profitability, yet it has not even been attempted. No reason has been given for failing to treat employees seemingly within the realms of the law. This is a case of terrible business mismanagement, flouting the law in a calculation that money will be saved. We have to make sure that that calculation is wrong.