P&O Ferries Sackings: Ferry Companies Risk A Change In The Minimum Wage Law

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P&O Ferries Sackings: Ferry Companies Risk A Change In The Minimum Wage Law

Ministers want to have all ferry companies operating from UK ports pay at least the National Minimum Wage in order to urge P&O Ferries to rehire 800 workers who were laid off.

Later this week, legislation will be introduced in the House of Commons.

According to a source, Transport Secretary Grant Shapps is hopeful that the corporation would "see reason and take a step back."

Workers should be returned on their current conditions, not the National Minimum Wage, according to unions.

P&O Ferries sparked controversy when it stated on March 17 that it would be replacing staff with agency workers who were paid less than the minimum wage.

The government now intends to address a legal loophole that allows ferry companies operating out of UK ports to pay less than the minimum wage.

The minimum hourly rate in the United Kingdom is £8.91, while the average rate paid to agency workers brought in by P&O Ferries is £5.50.

According to a source, Mr Hebblethwaite will receive a letter from the transport secretary warning him that if he "does not conduct a U-turn, we will force him to do it anyhow."

"Ferry firms will be unable to operate from UK ports unless they pay the National Minimum Wage," they added.

Efforts to modify the law will begin this week on Wednesday or Thursday.

Unions expressed concerns about increased crew training, and the Maritime and Coastguard Agency (MCA) held P&O Ferries' vessel European Causeway in Northern Ireland on Friday.

According to the MCA, the ship was seized at Larne due to "failures on crew familiarisation, vessel documentation, and crew training." P&O Ferries stated that it would make changes to the ship before returning her to operation.

The Rail, Maritime and Transport Workers Union's Alex Gordon told BBC Radio 5 live that the union would not accept the National Minimum Wage for its members, and that P&O Ferries should honor their existing contracts.

P&O Ferries said it needed to replace crews because it was losing £100 million a year and wouldn't be able to continue operating.



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