Car ferry price hikes possible as minister brands P&O a “cowboy operator"

Travellers on the highly competitive cross-Channel routes could be subject to price rises, following the Government’s move to impose minimum wage regulations on seafarers employed by operators using ports more than 120 times a year. 

Deputy Prime Minister Angela Rayner and Transport Secretary Louise Haigh have issued statements via the Department for Transport saying Labour’s newly revealed Employment Rights Bill will contain measures designed to prevent a repeat of the P&O Ferries ‘fire and rehire’ scandal in 2022.

“We are closing the legal loophole that P&O Ferries exploited when they sacked almost 800 dedicated seafarers and replaced them with low paid agency workers, and we are requiring operators to pay the equivalent of National Minimum Wage in UK waters,” said Haigh.

“Make no mistake – this is good for workers and good for business. Cowboy operators like P&O Ferries will no longer be able to act with impunity – undercutting good employers in the process.”

Deputy PM Rayner said: “What we saw with P&O Ferries was an outrageous example of manipulation by an employer and exactly why we’re taking bold action to improve job security in the UK."

“These long overdue changes will shield workers from the mistreatment of having their terms and conditions ripped up before their eyes, while benefiting good employers to compete on quality and innovation, rather than a race to the bottom.”

It’s not yet clear when the new employment rights will be enacted, as the Bill is being presented to Parliament in draft form for consultation. However, we’re told it does bring into force from 1 December a law passed last year – under the previous Conservative government – designed to set up a ‘minimum wage corridor’ between cross-Channel ports. 

A similar law implemented in France last summer already forces cross-channel operators to pay French minimum wages, but there will be an impact on wage bills as the UK minimum wage is currently set around 20 per cent higher than it is in France. 

A P&O spokesperson told Auto Express that it was too early to say whether fares would be affected, but said: “P&O Ferries welcomes any legislation that creates a level playing field among ferry operators and delivers the shared ambition of Government and industry of having a thriving sector.”

P&O declined our invitation to respond to the “cowboy operator” allegation from the Transport Secretary. However, despite the negative press received in 2022, none of the 786 redundancies went to an employment tribunal hearing, while the company maintains the crewing changes made in 2022 were fully compliant with UK law. 

“The tough but necessary changes made in March 2022 saved the business and 2,000 jobs. The business is now on track to return to profitability, a necessary condition for any business to sustain jobs for the long term,” it added.

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