PARLIAMENTARY DEBATE
Fire and Rehire - 16 May 2024 (Commons/Commons Chamber)

The Government recently published a statutory code of practice on dismissal and re-engagement. The code will address the practice of fire and rehire, aiming to ensure that it is only ever used as a last resort, and that employees are properly consulted and treated fairly.

The TUC has found that since 2020 about 10% of all workers have had to reapply for their job. And let us remember that in 2020 British Airways tried to sack 36,000 staff through fire and rehire, which was stopped only through strike action—the Government took no action. In 2021, Go North West in Manchester threatened the same and, again, industrial action stopped it happening—the Government took no action. In 2022, infamously, P&O Ferries unlawfully sacked 786 staff before replacing them with agency staff—the Government took no action. I implore the Government to outlaw this practice. Rather than just bringing in a code of best practice, they should be taking action to protect British workers.

After the P&O incident, in which workers were indeed treated totally unacceptably, we introduced a whole range of measures set out in our nine-point charter, including the Seafarers Wages Act 2023, which will come into force this summer. We launched the seafarers charter, to which P&O has now committed, which I very much welcome. The code of practice on dismissal and re-engagement, which will come in before the summer recess, will give workers up to 25% extra compensation if their employers do not abide by it.

I call the shadow Minister.

The UK minimum wage is £11.44 an hour, but last week, here in Parliament, Peter Hebblethwaite, the chief executive officer of P&O, admitted that it paid seafarers £4.87 an hour. This has been an awful breach of trust. What more will the Minister do to stop companies acting like modern-day pirates of the high seas when it comes to fire and rehire?

As I mentioned in my previous answer, many of P&O’s practices have indeed been totally unacceptable, including on minimum wage issues. That is why we introduced the Seafarers Wages Act, which will ensure that seafarers operating on regular services in UK waters get the minimum wage. We have also co-ordinated with legislation in France to ensure a minimum wage corridor for all services operating between the UK and France, which will give workers the wages they deserve.

I call the SNP spokesperson.

It is two years since the reprehensible actions of P&O, and Peter Hebblethwaite’s calamitous appearance in Parliament comes four years after Willie Walsh and Álex Cruz, the then CEOs of the International Airlines Group and BA, shamefully threatened thousands of British Airways workers with fire and rehire, having refused Government covid assistance. On Tuesday I asked the Minister of State at the Department for Business and Trade, the hon. Member for Thirsk and Malton (Kevin Hollinrake), in this Chamber to confirm whether the new fire and rehire code of practice would have prevented this threat from being made. He could not do so, so I ask this Minister the same question. And if not, why not and what is the point?

In addition to my earlier answer, I should point out that the P&O case is being investigated by the Insolvency Service, and I await the outcome of that investigation. The point of the code of practice is to ensure that fire and rehire is very much a last resort. If employers breach the code, their employees can get up to 25% greater compensation. The Government have made sure that is the case.