Extra protections for seafarers as Government introduces new maritime laws

• New powers mandating ferries operating in and out of the UK pay national minimum wage to be brought forward
• ‘Minimum Wage Corridors’ to be explored with like-minded countries to ensure workers are paid an agreed minimum wage
• Transport Secretary calls on Insolvency Service to disqualify P&O Ferries Chief Executive

The UK Government has today (Wednesday 30 March) announced a suite of new measures to protect seafarers, following P&O Ferries’ decision to summarily sack 800 workers earlier this month 

The Transport Secretary confirmed he will bring forward new legislation to ban ferries which don’t 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), closing a legal loophole between UK and International Maritime Law that 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 today – 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. 

As a leading maritime institution, 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.  

The Transport Secretary has also written to France, the Netherlands, Ireland and Denmark to propose bilateral agreements which 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.

Transport Secretary Grant Shapps said: 

“We can boast some of the highest maritime standards in the world, 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, and it reiterates the UK flag as one of the most respected in the world. 

“P&O’s behaviour has appalled the nation and I want to make it absolutely clear we will not tolerate their actions or allow anyone else to follow suit – and this package of measures will act as a strong deterrent. 

Following the conduct of Peter Hebblethwaite, the Transport Secretary has asked the CEO of the Insolvency Service to consider whether the P&O Chief Executive should be disqualified as a director. 

It 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. 

Business Secretary Kwasi Kwarteng said:

“P&O’s use of aggressive employment tactics has been completely unacceptable, 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.”

Today’s updates mean more than 21,000 seafarers across the UK will no longer be undercut and puts the UK ahead of any EU state in its protection on pay. 

British seafarers are recognised as some of the most highly skilled worldwide and the UK’s Maritime 2050 strategy sets out a plan for a fairer global maritime industry.  

Ian Hampton, Executive Director, Stena Line

“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.”

Buoyed by the highest number of maritime training providers out of any country, the Government is 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 made redundant, as well as the sector at large.  

Notes to editors

NOTES TO EDS  

Speaking in Parliament today, the Transport Secretary outlined nine commitments to seafarer protection 

Nine commitments 

1. HMRC will dedicate national minimum wage resource to the maritime sector.  
2. Maritime and Coastguard Agency to review its enforcement policies, checking they are fit for purpose now and into the future.   
3. The Government will take action to prevent employers using fire and re-hire tactics where the employer has not made all reasonable efforts to reach agreement through a full and thorough consultation. A Court and Employment Tribunal can take into account the new statutory code and, if an employer fails to comply with the code, impose a 25 per cent uplift to a worker’s compensation. 
4. The Transport Secretary has asked the CEO of the Insolvency Service to consider whether the P&O Chief Executive should be disqualified as a director 
5. Push the International Labour Organisation to agree to a common set of principles to support maritime workers, including an international minimum wage, global framework for maritime training and skills, and tools to support seafarer mental health. 
6. Reforming the Tonnage Tax to make it easier for maritime businesses to set up in the UK and prevent operators from exploiting loopholes by flagging their vessels abroad to escape UK laws. This will remove unnecessary red tape, as well as provisions no longer relevant now the UK is outside of the EU.  
7. Work with international partners including France, Denmark, the Netherlands, and Ireland to discuss the development of National Minimum Wage corridors between our nations. 
8. Plans to ensure British ports to refuse access to ferry services which do not pay their crew the National Minimum Wage. The Government will achieve this by using primary legislation to amend the Harbours Act 1964,  
9. The Transport Secretary has written to all ports in the UK on our intention to bring legislation as soon as possible 

FURTHER INFO ON CHANGES

• The Government will change the Harbour Act 1964 and introduce a new statutory duty on UK ports, as an exercise of port state control, to make access of ships to UK ports conditional on their paying their workers with the equivalent of the National Minimum Wage.    
• The Secretary of State for Transport has written to his French, Dutch, Danish and Irish counterpart to issue a clear statement of intent to operators on the Short Straits route between Dover and Calais or Dunkerque.