British ports are not in the position to enforce rules on new government pay plans for ferry companies triggered by the abrupt sacking of 800 P&O Ferries staff.
The response came from the British Ports Association to transport secretary Grant Shapps’ call for ports to refuse entry to ferry firms that don’t pay a fair wage.
Shapps said on Wednesday he would ask British ports to bar access to ferry operators which do not pay the minimum wage and take action against company leaders that break the law.
He told MPs: “I want to see British ports refusing access to ferry companies which don’t pay a fair wage as soon as practical.”
His pledges come after P&O Ferries’ chief executive Peter Hebblethwaite said the company knew it would be breaking the law by making almost 800 seafarers redundant on March 17 without consulting beforehand.
But the head of the ferry ports trade body raised concerns the government was “rushing to find a solution”.
Richard Ballantyne, chief executive of the British Ports Association, which represents all of the UK’s main ferry ports, said: “While it’s right the government and the ferry industry look to improve employment rules and standards, the expectation that port authorities will need to enforce minimum wage rules in the shipping sector could be unworkable.
“This will place ports in a difficult legal predicament, especially before any legislation is in place.”
He added: “The ports industry is genuinely sympathetic towards the situation of the impacted seafarers, however we would suggest that ports are not the competent authorities to enforce rules on employee salaries or working conditions in the shipping industry.
“However, we look forward to working with the Department for Transport and the Maritime Coastguard Agency as well as our partners in the ferry industry to help overcome the current challenges that have been brought into sharp focus over recent weeks.”
The UK Major Ports Group, the trade association representing large commercial ports in the UK, argued ports should not have to “be the police for the labour practices of ferry companies”.
“We want to engage urgently and work with government to find a more effective and appropriate way of addressing the issues raised” by the P&O Ferries sackings, it reportedly said.
Unions also expressed disappointment that the plans did not go far enough.
The Department for Transport said it is “engaging closely with industry to ensure that the new measures work effectively for all parties” and added that Shapps had written to all ports requesting their support.
Shapps told the House of Commons on Wednesday that he had written to the head of the Insolvency Service, “conveying my firm belief that Peter Hebblethwaite is unfit to lead a British company, and have asked them to consider his disqualification”.
Shapps added: “The Insolvency Service has the legal powers to pursue complaints where a company has engaged in, and I quote, so-called ‘sharp practice’.
“Surely, the whole House agrees that nothing could be sharper than dismissing 800 staff, and breaking the law whilst doing so.”
Stena Line was included in a DfT statement outlining government efforts to clamp down on the practice of ‘fire and rehire’.
Ian Hampton, executive director of the P&O Ferries’ rival, said: “Stena Line welcomes the package of changes proposed to address the present inequalities that exist for seafarers working on regular ferries services to and from the UK.
“We have a long-held strategy of employing local seafarers onboard our vessels. Today’s announcement protects that strategy and in addition creates the necessary consistency and equality needed across the sector.”