Labour is preparing to introduce new legislation aimed at enhancing working conditions for seafarers, particularly in response to the concerns raised during the P&O Ferries mass layoffs. This week, the proposals will be presented in Parliament as part of a broader strategy to address poor practices within the maritime industry, encompassing both cruise and cargo vessels.
In a recent interview, Transport Secretary Louise Haigh detailed how these new laws aim to close the loopholes that P&O exploited when it abruptly terminated the contracts of 800 crew members in 2022. The proposed regulations will grant the government the authority to impose unlimited fines on any company that tries to replicate such actions in the future.
The employment rights bill will enhance collective dismissal laws specifically for seafarers and will enforce the national minimum wage of £11.44 per hour for cross-Channel ferry operators starting December 1, in accordance with the Seafarers’ Wages Act.
Deputy Prime Minister Angela Rayner highlighted the importance of these changes, stating, “The P&O Ferries scandal demonstrates precisely why we need bold action to improve job security.” She added that the reforms are designed to support responsible employers, allowing them to compete based on quality and innovation rather than cost-cutting measures.
Historically, companies like P&O Ferries and Irish Ferries have managed to reduce staffing costs by employing agency workers at lower wages, giving them an unfair advantage over competitors who hire full-time, well-compensated staff. The government intends to eliminate “fire and rehire” strategies, except in situations where employers have no viable alternatives. Haigh rejected P&O’s assertions that restructuring was necessary for financial stability, citing that other companies, like DFDS, have successfully operated with full-time staff receiving fair wages.
Haigh affirmed, “DFDS continues to operate in the Dover Straits with proper pay and conditions for their crew. P&O, supported by a highly profitable parent company, treated its employees unfairly. While we want to work with businesses and workers, we will not partner with unscrupulous operators.”
Initially, these new measures will focus on vessels visiting UK ports more than 120 times a year, regardless of their flag or the nationality of their crew. Companies that fail to prove compliance with the minimum wage risk facing surcharges or being denied entry to ports.
Haigh expressed her intention to expand these regulations to include a wider range of ships and improve overall working conditions. However, she acknowledged the complexities of international shipping law and the necessity for robust legislation. She referenced France’s ongoing efforts to enforce its minimum wage for cross-Channel ferries since June, which have faced legal challenges.
While most cargo and cruise ships operate mainly in international waters and might not be subjected to these new regulations, Haigh insisted that working conditions at sea should never be worse than those on land. She noted concerns about practices like “fire and rehire,” which have emerged in the maritime industry, including on cruise ships.
Gemma Griffin, Vice-President of Global Crewing at DFDS, welcomed the anticipated changes, stating, “These reforms are crucial for protecting our colleagues and restoring fairness in the Dover Straits.”
Captain Adrian Sheaff of the DFDS Dover Seaways added, “In this day and age, we shouldn’t even be discussing the exploitation of seafarers. I hope this legislation will target ships flying flags of convenience that do not comply with the Maritime Labour Convention.”
Seafarers’ unions, including Nautilus and RMT, have voiced their support for the new measures. They are advocating for a mandatory charter to limit working hours and enforce regular crew rotations, stating that ferry crews should not work more than two consecutive weeks at sea.
RMT General Secretary Mick Lynch stressed the urgency of this action, emphasizing that it shows Labour’s commitment to protecting seafarer jobs, which has been overdue. Nautilus representative Martyn Gray expressed optimism regarding the government’s intentions, noting, “They’ve made a strong start, and we trust they will continue to act where possible.”
Conversely, a spokesperson for P&O Ferries, under DP World, asserted their compliance with existing laws and mentioned adjustments to their crewing policies to meet new legal requirements. They noted that recent changes in French law have made it less feasible to employ a large number of non-European crew members due to travel and immigration issues.
Meanwhile, a spokesperson for P&O Cruises, part of Carnival, reiterated their commitment to their crew, asserting, “Our seafarers are integral to our business, and we do not plan to dismiss or re-engage any of our crew members.”
