Government vows to crack down on ‘lay-and-hire’ after P&O layoffs – Reuters

Boris Johnson’s government has vowed to crack down on ‘retrenchment and re-hiring’ following outrage over the mass dismissals of P&O Ferry employees.

Labor has repeatedly called for a complete ban on the practice, which sees companies lay off employees and rehiring them on reduced terms.

Ministers had previously dismissed Sir Keir Starmer’s appeals, saying the P&O scandal – in which 800 people were short-lived to cheap agency staff – was not a ‘fire and re-hire’ case.

However, Business Secretary Paul Scully said on Tuesday that the government would act now – promising to introduce a new “statutory code” to discourage such tactics.

Mr Scully said the Department for Business, Energy and Industrial Strategy (BEIS) will introduce a new ‘termination and re-employment’ code aimed at increasing compensation.

In a written statement, Minister BEIS said the planned changes should allow labor court boards to “provide an increase in compensation to the employee, subject to a maximum of 25% of global compensation”.

Mr Scully said: “This increases the size of the penalties for companies that abuse the process and do not treat their employees fairly – and should provide an additional deterrent effect.”

Tory lawmakers last week put an end to a Labor motion to ban firing and re-enlistment altogether, which passed the Commons by a vote of 211. But employment law is unlikely to see major changes without government support.

It comes as P&O Ferry boss Peter Heblethwaite insisted he would not change his decision to lay off about 800 sailors despite being given one last chance by Transportation Secretary Grant Shapps.

See also  "Sensitive" Defense Documents Discovered by Quidam

Mr Shapps said he planned to introduce a package of measures to ensure ‘the sailors were protected’ – telling the chief executive of P&O Ferry that he had ‘another opportunity to reverse this decision’ ‘ and to re-employ the employees at their previous pay.

But Hebbalthwaite claimed that redeploying hired workers with previous pay would “deliberately demolish the company, resulting in an irreparable loss of 2,200 more jobs”.

Mr Shapps said he intended to ‘block the outcome of the P&O ferry’ – including ’employees paid less than the minimum wage’.

The Transport Secretary is set to try to change the law to ban the ferry operator from UK ports unless it drops ‘sweetshop’ payment rates at least £5.15 from the l’ time.

But the RMT union has warned that a plan to stop P&O Ferry from cutting minimum wages is not enough to “undo” the mass layoffs.

However, the Department for Transport privately acknowledged that the wage action cannot be applied retroactively.

Senior MPs have said that P&O Ferries should be stripped of its UK operating license and that its owner should be removed as a director of the company after they acknowledged that their company had refused to consult on the mass dismissal. Breaking the law by choosing the option.

Transport selection committee chairman Tory Hugh Merriman and trade selection committee chairman Darren Jones of Labor called for strong action to sue P&O Ferries and “withdraw their license to operate in the UK”.

You May Also Like

About the Author: Forrest Morton

Organizer. Zombie aficionado. Wannabe reader. Passionate writer. Twitter lover. Music scholar. Web expert.

Leave a Reply

Your email address will not be published.