Shapps orders P&O Ferries bosses to ditch 'sweatshop pay'

Grant Shapps issues ultimatum to P&O Ferries that he will ban it using British ports unless firm’s bosses to ditch ‘sweatshop pay’ policy

  • The Transport Secretary has given an ultimatum to P&O Ferries on pay rates
  • The Government could ban maritime ferries from operating in British ports if they pay under the UK minimum wage. 

Grant Shapps is to send an ultimatum to P&O Ferries ordering it to make a U-turn over its ‘sweatshop pay’ policy or face being forced into a climbdown.

In a letter to the firm’s boss, Peter Hebblethwaite, the Transport Secretary will warn of new measures to close a ‘loophole’ exploited by P&O to circumvent national minimum wage rates.

They would ban maritime firms from British ports unless they pay crew at least the UK minimum wage.

About 800 crew, mostly UK nationals paid an average annual salary of £36,000, were sacked by P&O Ferries without notice on March 17

Mr Hebblethwaite will be told to make a U-turn or face being forced into one when the measures come into force.

A Department for Transport source said: ‘Brexit allows us full control of the prized ferry routes operating between the UK and the Continent and Ireland.

‘There will be no room on UK ferry routes for firms that think they can get away with sweatshop pay.’

About 800 crew, mostly UK nationals paid an average annual salary of £36,000, were sacked by P&O Ferries without notice on March 17. Cheaper agency staff brought in to replace them are being offered an hourly average of £5.50.

In a letter to the firm’s boss, Peter Hebblethwaite, the Transport Secretary will warn of new measures to close a ‘loophole’ exploited by P&O to circumvent national minimum wage rates

P&O Ferries is currently legally entitled to pay them on lower international rates as its ships are registered abroad.

Mr Hebblethwaite, who is paid £325,000 a year plus bonuses, was branded a ‘shameless criminal’ who used ‘gangster’ tactics during a fiery Commons committee hearing last week.

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