Europe has tied my hands on ferry crews’ minimum wage, admits Grant Shapps

Grant Shapps is facing a revolt from port bosses over a plan to force them to turn away ferries that fail to pay their crew minimum wage, after admitting he is powerless to outlaw the practice support from European Union countries.

The Transport Secretary intends to change the law so that ports are responsible for barring operators that pay too little, following an outcry after P&O Ferries sacked 800 crew members without a consultation and replaced them with agency workers earning an average of £5.50 an hour.

Speaking in Parliament, Mr Shapps said this was the best approach because he is powerless to ban the practice outright without support from European Union countries at the other end of vessels’ routes.

However, the proposals sparked fury in the industry because port chiefs are reluctant to act as enforcers of government rules. Sources said that executives already feel that they have unfairly had to shoulder the burden of identifying Russian yachts and vessels entering UK waters. Putting extra responsibility onto them was a step too far, they said.

Richard Ballantyne, head of the British Ports Association, said: “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.

“Ports are not the competent authorities to enforce rules on employee salaries or working conditions in the shipping industry. We are concerned that the government is rushing to find a solution without considering the wider implications in the maritime sector.”

It is not possible to force ferry companies to pay British minimum wage of £8.91 an hour because they typically operate under the flags of foreign countries with different laws. 

Mr Shapps is in talks with France, Denmark, the Netherlands, Ireland and Germany to secure “wage corridors” that guarantee seafarers receive the minimum wage on certain routes, but this will only be possible if countries on either end agree.

The Sunday Telegraph reported that discussions had been opened with officials in Paris, The Hague and Dublin over the weekend. 

Mr Shapps said that in the meantime, he intends to change the law “as quickly as possible” so ports comply.

However, he added: “Legislative changes will not be possible overnight.”

Mr Shapps also set out “nine commitments” in the House of Commons designed to outlaw paying workers below the minimum wage within British waters.

He said: “Much of maritime law is governed by international laws, obligations, and treaties. And this means that we cannot hope to solve the problems alone.

“We’re legally-bound to consult with the sector on any changes – and unlike P&O, we take that consultation seriously… So legislative changes will not be possible overnight.”

P&O, whose ultimate owner is the government of Dubai, plans to replace its seafarers with agency staff. Dubai also owns ports at Southampton and London Gateway.

Mr Shapps has called for the P&O chief executive, Peter Hebblethwaite, to resign.

He told the Commons that he had written to the Insolvency Service to say Mr Hebblethwaite was “unfit to lead a British company”.


P&O Ferries accuses ministers of interfering in safety checks that left vessels stranded

P&O Ferries has accused ministers of interfering in safety inspections that have led to its vessels being impounded at ports.

The operator said that the Maritime and Coastguard Agency had applied an “unprecedented level of rigour” to inspecting its ships in the wake of “interventions by ministers and MPs” when it prevented two ferries from putting to sea.

The agency (MCA) raised safety concerns after P&O sacked 800 staff without a consultation and replaced them with cheaper agency workers.

The MCA, which is part of the Department for Transport, hit back by insisting that its inspections were conducted “without fear or favour”.

The spat comes with seven of the eight P&O ferries that must be signed off moored up at British ports after a 13-day hiatus.

P&O’s decision to make 800 seafarers redundant without notice nearly two weeks ago sparked a war of words between politicians and Peter Hebblethwaite, the operator’s embattled chief executive.

Grant Shapps, the Transport Secretary, has said that ferries that will be staffed by replacement agency workers must pass a safety inspection.

The European Causeway and Pride of Kent were detained by the MCA, with officials citing failures in “vessel documentation, crew familiarisation and training, and emergency equipment not functioning properly”.

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