The Department for Transport (DfT) on Wednesday (30 March) set out new protections for seafarers in the wake of the P&O Ferries scandal, which saw the firm – owned by Dubai-based DP World – on 18 March sack nearly 800 UK seafarers on the spot without notification or consultation. It has since replaced them with agency workers paid below the minimum wage.

P&O Ferries chief executive Peter Hebblethwaite has come under intense pressure to resign after admitting to a government select committee hearing the firm had knowingly broken the law by failing to consult workers or unions, and did so because it knew it had no chance of getting its proposal past them.

Transport secretary Grant Shapps wrote to Hebblethwaite on Monday, urging him to reverse P&O Ferries’ decision – or risk being forced to by new legislation.

Hebblethwaite said the decision was necessary as failing to cut staffing costs would have resulted in the collapse of P&O Ferries and the loss of a further 2,200 jobs.

The DfT on Wednesday said Shapps would now bring forward new legislation banning ferry companies that don’t pay workers the national minimum wage from docking at British ports, closing a legal loophole between UK and International Maritime Law it said P&O Ferries had "ruthlessly exploited".

With immediate effect, Shapps has instructed ports to refuse entry to ferries operated by companies not paying the national minimum wage. The DfT said HMRC would also step up enforcement activity to probe ferry operators its suspects not to be paying minimum wage.

Shapps has also written to authorities in France, the Netherlands, Ireland and Denmark to propose bilateral agreements ensuring UK ferry routes to and from these countries become "minimum wage corridors" where nationals of either country sailing them are paid "an agreed minimum wage".

Additionally, the government has called for the International Maritime Organisation to hold an international summit to discuss workers’ rights at sea and revise the status quo on seafarers’ basic pay rates around the world.  

“We can boast some of the highest maritime standards in the world, but for too long, some employers have managed to avoid showing workers the most basic respect," said Shapps. “Ensuring a fair wage for our seafarers means UK workers are not undercut by employers, and it reiterates the UK flag as one of the most respected in the world.

“P&O’s behaviour has appalled the nation and I want to make it absolutely clear we will not tolerate their actions or allow anyone else to follow suit – and this package of measures will act as a strong deterrent."

Shapps has also asked the Insolvency Service to consider whether Hebblethwaite should be disqualified as a director, while business minister Paul Scully has announced plans for a new statutory code of practice clamping down on so-called "fire and rehire" tactics by employers.

Business secretary Kwasi Kwarteng added: “P&O’s use of aggressive employment tactics has been completely unacceptable, and we are clamping down on employers who flagrantly fall foul in protecting the rights of their workers.

“By ensuring ferry staff working in and out of British ports and in UK waters are paid the national minimum wage, this new package will protect UK workers from being ruthlessly exploited by employers, while making sure they receive a fair day’s pay.”

The DfT said the proposals would ensure more than 21,000 UK seafarers cannot be undercut.