The UK Government has announced a suite of new measures to protect seafarers, following a local ferry operator's decision to summarily sack 800 workers earlier this month.
Transport Secretary Grant Shapps confirmed he will bring forward new legislation to ban ferry operators that don ot pay their workers the National Minimum Wage from docking at British ports. It means all ferry staff working in and out of British ports and when in UK waters, will earn the National Minimum Wage (NMW).
The government said the move will close a legal loophole between UK and International Maritime Law that ferry operator P&O Ferries "ruthlessly exploited."
To ensure seafarers are protected straight away, the Transport Secretary has instructed ports to refuse entry to ferries not paying workers the NMW from Wednesday, March 30, immediately replicating the effect the new laws will have when introduced in the coming weeks.
Also, HMRC will continue to target their enforcement activity, investigating any ferry operators that they suspect do not pay their workers minimum wage.
The government has called on the International Maritime Organisation (IMO) to hold an international summit to discuss workers' rights at sea and to revise the status quo on seafarers' basic pay rates around the world.
Mr Shapps has also written to France, the Netherlands, Ireland and Denmark to propose bilateral agreements that would ensure routes between the countries become "Minimum Wage Corridors", where nationals from either country must be paid an agreed minimum wage. This means that when travelling on the Short Strait, seafarers are always paid an agreed minimum wage.
"We can boast some of the highest maritime standards in the world," the Transport Secretary said, "but for too long some employers have managed to avoid showing workers the most basic respect. "Ensuring a fair wage for our seafarers means UK workers are not undercut by employers.
Mr Shapps said P&O Ferries' behaviour, "has appalled the nation," and that the government will not tolerate the company's actions or allow anyone else to follow suit.
"This package of measures will act as a strong deterrent," Mr Shapps added.
The Transport Secretary has also asked the CEO of the Insolvency Service to consider whether P&O Chief Executive Peter Hebblethwaite should be disqualified as a director.
The move comes as the Business Minister Paul Scully announced plans for a new statutory code on the practice of "fire and rehire", to clamp down on controversial tactics used by employers.
"P&O's use of aggressive employment tactics has been completely unacceptable," Business Secretary Kwasi Kwarteng said, "and we are clamping down on employers who flagrantly fall foul in protecting the rights of their workers.
"By ensuring ferry staff working in and out of British ports and in UK waters are paid the National Minimum Wage, this new package will protect UK workers from being ruthlessly exploited by employers, while making sure they receive a fair day's pay."
The government said the updates to the legislation will mean more than 21,000 seafarers across the UK will no longer be undercut and will put the UK ahead of any EU state in its protection on pay.
The government is also launching a new recruitment website for seafarers and maritime employers to connect, supporting the recovery and development of the transport industry. This will specifically target P&O Ferries workers who have been made redundant, as well as the sector at large.
