Some people think that the Tory government is soft on big companies and employers and they can get away with abuse of workers.
How did they get that impression?
"P&O’s actions highlight an underwhelming record by government on enforcement of employee rights. For years campaigners have complained of underfunding for enforcement of employee rights and huge backlogs at employment tribunals. While the government did last year announce a new single enforcement body for employment laws after a years-long wait, it left the position of director of labour enforcement vacant for 10 months even as the pandemic had tilted the balance of power in favour of employers.
Rishi Sunak’s resistance to extending the potential consequences of P&O’s actions to parent DP World and its freeports risks compounding a perception the UK is ultimately weak on enforcing employee protections. It is to be expected that the chancellor wants to preserve investment and limit the scope for job losses from other parts of the corporate group. But it cannot be the case that investment buys you freedom from consequences.
For its part, the government needed to show from the start resistance in the strongest possible terms to action by P&O without further engagement. Instead a bungled internal memo from officials a day before the sackings reportedly said changes would “align [P&O] with other companies in the market that have undertaken a large reduction in staff” and “ensure that they remain a key player in the UK market for years to come through restructuring”.
Clearly, there is a balance to be struck between flexibility for employers and protection of employees. But it seems reasonable to question whether the UK has drawn that line in the right place. It seems laughable to think that guidance would be sufficient to contain fire and rehire practices, as ministers argued last year, if companies think they do not have to comply with requirements set out in statute as it is.
It cannot be good enough that large companies only have to disclose scant details about their employment models, limiting the scope of investors and others to hold them to account. More broadly, it seems right to revisit once again whether UK corporate law is too shareholder centric and fails to give sufficient weight to other stakeholders, including employees.
P&O has said it acted as it did after “full consideration of all other options”. It should trouble ministers that they preside over a regime in which a company might consider an aggressive attitude to what are, at the very least, employment niceties as acceptable."
FT.com