"Government inaction after P&O Ferries scandal gives rogue employers a “free pass to act with impunity”, TUC warns", 17 March 2023

The Conservative government has given rogue employers a “free pass to act with impunity” after the P&O Ferries scandal – the TUC has warned, referring to the unlawful mass sacking of 800 seafarers a year ago...

The warning comes as the TUC...reveals that of the four ways P&O Ferries broke the law, the government has failed to act on every single breach...

The TUC says P&O Ferries also exploited loopholes in minimum wage law, which the government has failed to close – despite the introduction of the Seafarers Bill...

Flagrant law-breaking

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The duty to consult when making collective redundancies: P&O Ferries knowingly broke the law because they could price in the low cost of the financial penalties...the TUC called on the government to increase protective awards and sanctions to a level that would ensure employers are deterred from brazenly flouting the law. The government did nothing. 

Unfair dismissal of workers: Since the P&O Ferries sackings the government has taken no action to strengthen unfair dismissal protections. Ministers have launched a consultation on a draft statutory code of practice that would apply in similar situations. But even when the statutory code is in place an employer would only face a 25 per cent increase in financial sanctions, if they flouted the law – the TUC says this won’t stop rogue employers from breaking the law. 

Failure to notify the relevant government authorities: P&O Ferries failed to notify the correct state authorities. This meant a jobs rescue bid couldn’t be launched. Following the P&O Ferries scandal the government has failed act, meaning that any employer making large scale redundancies can price in the likely sanction for failing to notify the authorities. 

Breach of Director duties: P&O Ferries’ directors admitted deliberately breaching the law – and the TUC believes that the directors breached their fiduciary duties...despite serious acts of misconduct, no action has been taken against the P&O Ferries’ directors...

The TUC adds that the government inadequately acted after P&O Ferries bypassed the law by exploiting loopholes in minimum wage legislation...

However, the TUC warns there are gaping loopholes in the [Seafarers] Bill, including requiring ships to make a certain number of UK stops to fall within the law, meaning that employers whose ships don’t reach a required threshold of using UK ports a certain number of times could still dodge it.

According to the union body, when the replacement crew were first introduced after the mass sacking, P&O Ferries breached international safety standards by failing to ensure that the replacement crew were properly acquainted with safety procedures...

The TUC says ministers are rewarding P&O Ferries for its law breaking with government contracts...

The union body is calling on government to:

• Increase sanctions on employers who deliberately breach the law to provide a proper deterrent
• Introduce fair pay agreements to help lift wages and prevent a race to the bottom, starting in low-paid industries, including ferries
• Give workers protection from unfair dismissal from day one in the job
• Ensure employers are required to reinstate workers where employers breach consultative duties

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