Brexit and Its Impact on UK Employment: A Case Study on PO Ferries

The Sacking of British Workers and the Re-Employment of Foreign Workers at PO Ferries

Recently, PO Ferries made headlines by sacking 800 British workers and replacing them with foreign workers. This action has sparked controversy and raised questions about the relationship between Brexit and the employment practices of British companies.

The Ideological Core of Fire and Rehire

“Fire and rehire” at lower rates is a strategy that aligns closely with the Conservative Party's ideological beliefs. With the implementation of Brexit, the Conservative government has gained the freedom to facilitate such practices, which are highly restricted by EU regulations.

Brexit is often cited as a way to address the issue of hard-working British workers losing their jobs to cheaper foreign labor. However, this argument is somewhat tenuous. Merchant shipping has employed cheap foreign labor for decades, if not centuries, and the influence of free-market fundamentalists was a key factor in securing Brexit's approval.

A Disgusting Violation of Human Decency and the Law

Much of the outcry against PO's actions is rooted in a deep sense of moral violation. Critics argue that this is a clear breach of both human decency and the law. However, linking such actions to Brexit is challenging. Many industries have shifted production and employment to foreign locations even before Brexit was a topic of public debate.

Historical Context: Prior to Brexit

Even before the debate over Brexit began, many British companies had already moved their production and employment to foreign countries, often due to favorable EU grants.

Terries Chocolate: The company moved its production to Eastern Europe due to EU grants, resulting in the loss of nearly 700 jobs in York. HP Sauce: Production was moved to the Netherlands. Cadburys Drinking Chocolate: Production was licensed to a company in the Republic of Ireland.

These examples illustrate a broader trend where companies opt to employ foreign labor for cost savings, regardless of political changes like Brexit.

The Impact of Flags of Convenience and Tax Evasion

In the 1980s, many UK shipping companies registered their businesses in foreign flag-of-convenience countries to avoid UK taxes and the requirement to employ UK seafarers. Despite this, there are few British seafarers working globally, especially when British ship-owning companies exist.

Union representatives and others may be surprised by PO's inability to compete with companies that employ foreign workers, but this practice is long-standing and not unique to PO. The broader trend illustrates how free-market fundamentalism can lead to the outsourcing of jobs to cheaper labor markets.

The belief that an “unfettered free market” will solve all economic issues involves ignoring historical and contemporary realities. Companies like PO have demonstrated this ideology in action, raising ethical questions about the consequences of such policies on British employment.