Harbours (Seafarers’ Remuneration) Bill

Harbours (Seafarers’ Remuneration) Bill

The purpose of the Bill is to:

● Protect seafarers working aboard vessels visiting UK ports by ensuring the ports have powers ultimately to refuse access to ferry services that do not pay an equivalent to the National Minimum Wage to seafarers while in UK waters.

The main benefits of the Bill would be:

● Ensuring all ferry crews receive a fair wage whilst in UK waters when operating regularly to or from UK ports.

● Deterring other companies from repeating what P&O did to 786 seafarers, by closing legislative gaps used by some ferry companies operating regularly in and out of UK ports, to pay their seafarers less than national minimum wage.

● Safeguarding fair competition between vessels registered with the UK Ship

Register or domestic operated vessels and those operating internationally under other Flags.

The main elements of the Bill are:

● Empowering ports (statutory harbour authorities) to surcharge ferry operators if they do not pay the equivalent of the National Minimum Wage and ultimately to suspend them from access to the port.

● Providing powers of direction to require operators of vessels on frequent and scheduled services to ensure that their seafarers receive a fair wage while in UK territory and territorial waters.

● Requiring ferry operators to have access to all relevant details of employment terms, even if they do not employ crew directly.

● Providing for legal sanctions in case of non-compliance with such directions, including supplying false or incomplete information.

Territorial extent and application

● The Bill will extend and apply across the UK.

Key facts

● 786 P&O seafarers’ employment was ruthlessly terminated by P&O Ferries in

March 2022. We understand that the great majority accepted either ‘redundancy’ terms or rehire on less favourable agency contracts.

● On Wednesday 30 March, the Transport Secretary announced nine commitments to protect UK seafarers, in light of the P&O Ferries summary dismissals. Among other things, these commitments focus on:

o ensuring a fair wage for seafarers;

o working with international partners to discuss the development of 'National

Minimum Wage corridors' with numerous bilateral discussions already underway; and

o reforming Tonnage Tax to make it easier for maritime businesses to set up in the UK.

● The Government has already applied the National Minimum Wage to all seafarers working on domestic ferry services and on offshore support vessels serving oil and gas installations in the UK continental shelf.

● The National Minimum Wage was increased by 6.6 per cent to £9.50 an hour from April 2022.