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The fact that the 800 P&O crew members made redundant last week were employed via Jersey has “complicated the legal picture” in a way that may have allowed the company to take advantage, according to the UK Transport Secretary.
Last week, the travel company abruptly suspended sailings as it announced to crew onboard its vessels via a pre-recorded Microsoft Teams video that they were being made redundant “with immediate effect" and would be replaced by cheaper foreign agency labour.
The move was blasted by unions and the Government, which have since objected to and questioned the company on the legality of dismissing so many employees without notice.
Business Secretary Kwasi Kwarteng and Transport Secretary Grant Shapps separately wrote to the company last week to ask about its employment arrangements, which saw staff contracted through Jersey.
On Monday, Transport Secretary Grant Shapps told the House of Commons: “Colleagues should be aware that the UK operates under international laws as treaty members, meaning that UK law does not apply in all circumstances—an issue which may in part be in play in this case.
“A further consideration is that we understand that some seafarers were employed under Jersey law, which has further complicated the legal picture. Such complications allow employers to take advantage in the way that we have seen with P&O Ferries, which is why we will do all we can to ensure that domestic law is applied in full everywhere around the country.”
Parliamentary Under-Secretary for Transport Baroness Vere of Norbiton lamented the “complicated" nature of employment law on international routes yesterday.
She told the House of Lords: “In many circumstances, the jurisdiction of the flag state applies on board vessels on international routes. Occasionally, that can also be a coastal state or the state under which the contract of employment was signed.
“We believe that was Jersey for some of these workers, but there is an awful lot of information to be found out about the circumstances surrounding the contracts and employment of these individuals.
“We are working very closely with officials in the department to press P&O Ferries and its owner, DP World, for the information we need to fully get to grips with some of the issues we want to proceed with. As mentioned by the noble Lord, Lord Fox, we are looking very carefully at our contracts with P&O Ferries and DP World. We will immediately review them all.”
Responding to Mr Kwarteng’s letter last night, P&O CEO Peter Hebblethwaite confirmed that a total of 786 seafarers were dismissed from three Jersey companies: 587 from P&O Ferries (Jersey) Limited, 83 from P&O North Sea (Jersey) Limited and 116 from P&O Irish Sea (Jersey) Limited.
They worked across eight ships – each registered in Cyprus, the Bahamas or Bermuda - servicing routes including Dover to Calais.
He confirmed that colleagues employed through other jurisdictions were not dismissed, and that not all of those affected were UK residents.
At the time of the dismissal, the company said that each employee would be compensated for the lack of notice. Many experts have, however, disputed whether this is legally sufficient.
Viberts Associate Chris Hendry, a specialist in Jersey employment law, said that he thought it was “difficult to see how P&O have adhered to the law and treated their staff fairly.”
Under Jersey law, employees should be consulted with and warned of redundancy. Businesses also have an obligation to explore alternatives to redundancy.
Pictured: Chris Hendry, Associate in Viberts' Employment team.
“It appears the cost of doing business has been put before the needs of their employees and P&O believe they can navigate any reputational and legal risks,” Mr Hendry said.
Mr Hebblethwaite told Mr Kwarteng in his letter that P&O had concluded “that the business simply wouldn’t survive without fundamentally changing crewing arrangements”.
“We saw no other viable means of preserving our iconic British business, saving the 2,200 remaining jobs it provides and protecting the 15% of Britain’s trade capacity it facilitates.”
Unions have claimed some staff will be replaced by Indian crew on salaries as low as £1.81 an hour.
Mr Hebblethwaite went on to state in his letter that 575 affected staff had “taken steps to accept the severance terms offered” and described the redundancy package offered by P&O as “very generous”.
It was reported this morning that some employees will receive 91 weeks' pay, with no one receiving less than £15,000. The redundancy payments are estimated to cost the company £36.5m.
Mr Hebblethwaite also said that dismissed seafarers had been offered “support to find new jobs” and been “provided with a list of organisations within the sector that have current vacancies for their consideration and have also been offered to participate in an outplacement (job search) programme that is paid for by P&O ferries”.
Since news of the mass redundancies broke last week, there have been calls for the end of offshore employment arrangements by unions, and political voices both locally and nationally.
Leader of Northern Ireland’s Traditional Unionist Voice Party, Jim Allister, who said in a statement: “It appears P&O sought to circumvent our employment laws by having their employee contracts rooted in Jersey.
“Going forward, this loophole must be closed by effective legislation. Never again must employees be the victims of such brutal treatment and exploitation.”
Reform Jersey leader Senator Sam Mézec described the way P&O staff had been treated as “disgusting”.
“Jersey employment law should not provide for these sorts of loopholes that allow workers to be treated so unfairly,” he commented. Should any related legal case take place in Jersey, he said he hoped “our system can offer them justice.”
St. Helier’s Deputy Mike Higgins tweeted: “Absolutely disgusting that P&O used Jersey Law to fire 800 workers in UK in such a callous way.
“We need to change our laws to prevent this happening to others in the UK and protect Jersey workers.
“Must be a priority after election.”
WATCH: Sacked P&O staff were contracted through Jersey
OPINION: P&O redundancies show why it's critical to follow a fair process
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