P&O Ferries given deadline to reemploy sacked workers

The boss of P&O Ferries has been given "one final opportunity" to reemploy sacked staff on their previous salaries by Transport Secretary Grant Shapps.

In a letter, Mr Shapps again urged Peter Hebblethwaite to reverse his decision to sack 800 seafarers.

If not, he said the government's plans to make it illegal for ferry firms to pay less than the minimum wage, would likely force him to do so.

P&O Ferries said sacking workers was not just about saving money on wages.

"The predicted savings we announced are not solely coming from the reduction in wages, but from removing job duplication and the benefits we will see from increased flexibility," it said.

It said it would welcome the minimum wage rising for all seafaring workers because it would create "a level playing field when it comes to pay and conditions on British ferry routes."

P&O Ferries prompted outrage on 17 March when it announced that it would be replacing staff immediately with agency workers paid less than the minimum wage.

"A reversal at this point may also go some way in starting to repair your firm's reputation," the transport secretary wrote, accusing Mr Hebblethwaite of leaving it in "tatters".

Mr Shapps also suggested that company dropped a 31 March deadline given to staff to respond to redundancy offers.

It is understood that over half of the sacked workers - 430 people in total - have already accepted their redundancy payments.

Mr Hebblethwaite admitted last week that his decision to sack 800 workers without consulting unions first broke the law. However, he said no union would have accepted the plan and it was easier to compensate workers "in full" instead.

The transport secretary said Mr Hebblethwaite's attitude showed "contempt for workers who have given years of service at your company".

Ministers plan to force all ferry companies operating from UK ports to pay at least the National Minimum Wage, in a bid to persuade P&O Ferries to reinstate 800 workers it has sacked.

The UK minimum wage is £8.91 per hour for workers over 23. The average rate paid to the agency staff brought in by P&O Ferries would be £5.50, which is in line with international maritime standards.

Efforts to change the law will begin on Wednesday or Thursday.

Transport Minister Robert Courts told MPs P&O Ferries would "not be allowed to get away with their actions".

He said that the government was looking at a range of tools "as fast as humanly possible", although he could not give more detail when speaking in the House of Commons.

Mr Shapps said the measures would ensure seafarers were protected against the actions P&O Ferries had taken, but admitted some may not want their jobs back at this stage.

The chairs of the Business and Transport committees also wrote to Grant Shapps on Monday, calling on the government to prioritise the well-being of seafarers.

"Government has not moved quickly enough to support them," they suggested, while also calling for the resignation of Mr Hebblethwaite.

Unions have also argued that workers should be reinstated on their existing terms - not the National Minimum Wage.

The Rail, Maritime and Transport Workers Union said it would not accept the National Minimum Wage for its members, and that P&O Ferries should honour their existing contracts of employment.

The union's national secretary, Darren Proctor, said ferry operators paying below minimum wage had "contributed to the decimation of UK seafarers" and higher wages would create more opportunities for UK workers.

However, he told BBC Radio 4's Today programme customers may have to pay higher prices as a result.

"If you want decent terms and conditions and decent service and safe vessels then you might have to pay a little bit more," he said.

Unions have also cited fears over a lack of training of new crew, and on Friday the Maritime and Coastguard Agency (MCA) detained P&O Ferries' vessel European Causeway in Northern Ireland.

The ship was held in Larne over "failures on crew familiarisation, vessel documentation and crew training", the MCA said. P&O Ferries said it would make changes to return the ship to service.

Officials will also meet P&O Ferries' rivals to prevent possible Easter travel issues.

Bosses from ferry operators DFDS and Stena Lines will meet the government to see what measures can be introduced to help if P&O Ferries services remain disrupted into the Easter holidays.

On Monday, P&O Ferries said its Dover-Calais route would remain suspended until 31 March. Sailings were originally expected to resume on 29 March.

The firm said it had to replace crews because it was losing £100m a year and would not be a viable business without making the changes.

Other operators, such as Eurotunnel, have said they have seen a boost in demand following the move.

A Eurotunnel spokesman told the BBC that it had seen a marked increase in bookings since the no-notice sackings - even beyond the boost seen after Covid restrictions were lifted.

The firm said it was partly down to people wanting to travel, but also down to consumers voting with their feet after the shock announcement by P&O Ferries.

A Department for Transport spokesperson said: "Ministers are working to understand how we can ensure the continuation of services in collaboration with other operators, including DFDS and Stena", although Eurotunnel is not expected to take part in the talks.