WIREDGOV

The TUC recently (23 March 2022) hit back at P&O claims that they complied with the law when sacking 800 of their staff last week.  

The TUC point to the company’s failure to consult with staff before the mass sacking – a fact P&O admitted in its letter to government recently (22 March 2022).  

Employers are required by law to inform and consult employee representatives of impending redundancies. This gives worker representatives the opportunity to explore alternative approaches. 

Successive Conservative and coalition governments have reduced the consultation period for large-scale redundancies to 45 days. 

TUC General Secretary Frances O’Grady recently said:  

"For all their bluster and denial, all the signs point to P&O breaking the law. 

“UK law requires companies to consult with workers and unions before making redundancies. In their letter to ministers last night, the company are clear that they did not do this.  

“At every turn, P&O is outdoing itself with its shameful behaviour. It’s time for P&O to come clean – and to reinstate all sacked staff. 

“And the government needs to hit P&O in the pockets.  

“Ministers must suspend all of P&O’s licenses immediately and cancel its lucrative freeport contracts until all workers have been reinstated.  

“And there can be no more kowtowing to bad bosses. The Chancellor must use his statement today to make clear that not a single penny of taxpayers’ money should be given to companies that trample over workers’ rights.” 

Emily Bradshaw, Partner at law firm Pattinson & Brewer, recently said: 

“Under employment legislation (TULRCA) employees should be given notice of dismissal and a consultation process should be run to allow for alternatives to redundancy to be put forward and considered.  

“I often look after the employees of companies who have gone bust - and so who have not been able to comply with the legislation, but in this case we see a solvent company flouting the process for their own financial gain.” 

The TUC says the government must be prepared take over P&O vessels as an operator of last resort and re-instate all 800 sacked staff. 

In addition, the union body says ministers must bring forward an employment bill to: 

• End fire and rehire style practices and stop companies firing at will: P&O has exploited many of the same weaknesses in the law as companies using the punitive fire and rehire tactics. TUC research published during the pandemic revealed that 1 in 11 (9%) of workers have been forced to re-apply for their jobs on inferior terms and conditions. The law should state that no notices of dismissal can be given until consultation has been completed. Employees should be given protection from unfair dismissal from day one in the job.  
• Increase penalties on companies that break employment law: P&O’s failure to consult staff on their redundancies appears unlawful. But companies who flout employment law  can get away with offering staff measly compensation and are rarely punished in the courts.  
• Ban other forms of exploitative practices: More than one million workers in the UK are employed on zero-hours contracts and thousands of others are employed in bogus self- employment. The TUC says zero-hours contracts and umbrella companies should be banned.

Editors Note’s

• The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.5 million working people who make up our 48 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living. 
  • Section 188 of the Trade Union and Labour Relations Consolidation Act (TURLCA) requires consultation with workers and unions before redundancies. In their answer to question 1 from ministers in the addendum to the letter, P&O state “No consultation was carried out in advance”. Failure to observe this section of the law carries a fine. Fines for not fulfilling this obligation are, however, severely limited. The TUC and unions have called for years for the legislation to be updated to allow for unlimited fines as a real deterrent to companies to ignore the law.  
  • For the avoidance of doubt, the Jersey registration of the relevant P&O companies that conducted the sackings is not relevant. Nor is the overseas registration of the ships in question. UK law still applies.  
  • P&O claims it is offering a generous settlement to workers who sign a non-disclosure agreement. In reality, it is merely offering some of what would likely be due to those workers if an employment tribunal were to find the company have broken consultation laws (as they appear to have done). The TUC and unions have long campaigned against companies being able to blithely ignore UK employment law by by paying workers for their silence.    
  • The TUC expects these points to be raised at the joint hearing of the Business and Transport select committees tomorrow, and, in time, for the company to be forced to account for its actions in court and at employment tribunals brought by sacked workers. 

Contacts: 

TUC press office  
media@tuc.org.uk   
020 7467 1248