Downing Street has said it is looking to see if P&O Ferries has broken any rules after the company made the decision to sack 800 seafarers. The firm fired the staff without notice on Thursday and are set to be replaced with cheaper agency workers.
Union bosses have called for a boycott of the company while demonstrations are being held at ports on Friday. The firm blamed losses of £100m and said that the cuts had to be made as it was not currently a “viable business”.
The official spokesman for the Prime Minister said the Government was looking ‘at the legality’ of P&O’s decision. He said: “We are looking very closely at the actions that this company has taken to see whether they acted within the rules.
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“Once we have concluded that, we will decide what the ramifications are. Obviously there are a lot of valid questions in relation to existing contracts.”
He said companies should only make “extreme decisions to secure the future of their business if all other avenues have failed”, adding: “We don’t believe this was the case for P&O staff but we are looking into this very carefully.”
The Rail, Maritime and Transport (RMT) union said there should be a widespread public and commercial boycott of the ferry giant until the jobs are reinstated. It called on the Government to demand P&O reverse its decision and negotiate with the unions.
If this does not happen, the Government should use powers to take over the P&O vessels, said the RMT, adding that ministers should remove any support for the company’s owner, DP World, including future contracts. New laws are also needed to protect the long-term future of workers in the UK maritime industry, the union added.
The Transport Salaried Staffs Association and Fire Brigades Union joined the criticism of P&O.
Shadow transport secretary Louise Haigh, who visited the protest in Dover, said: “This was a despicable assault on workers’ rights, but British seafarers do not need meaningless platitudes – they need action. That’s why the Government must consider suspending licences and contracts held with DP World, claw back every penny of taxpayers’ money, and outlaw fire and rehire now.”
Nautilus International, which represents some of those fired, urged the Maritime and Coastguard Agency to “make sure the ships are safe” as the new crews are “unfamiliar” with the vessels and routes.
P&O told passengers sailings will be suspended “for the next few days”. The company operates four routes: Dover to Calais, Hull to Rotterdam, Liverpool to Dublin, and Cairnryan in Scotland to Larne in Northern Ireland.
It advised those already at Dover and Calais to make their way to the check-in booths for Danish firm DFDS, but there were no such instructions for those at Hull, Rotterdam, Liverpool, Dublin, Cairnryan or Larne.
The firm insisted the decision to cut jobs was “very difficult but necessary” as it was “not a viable business” in its current state.
Freight services and supply chains are set to be disrupted as a result of the P&O sackings, a delivery specialist has said.
ParcelHero warned that the suspension of services could impact cross-Channel shipments, as well as those between Great Britain, Northern Ireland and the Republic of Ireland.
ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., said: “P&O is not just a passenger ferry operator, its freight services are hugely important for UK supply chains and businesses. It carries around 15% of all freight in and out of the UK, more than 2,000 businesses use its services and it operates a third of the cross channel ferry market.”
He added that the suspended services, combined with additional pressure from Brexit and Covid would lead to “inevitable” disruption.
In a previous statement, P&O said: "P&O Ferries plays a critical role in keeping trade flowing, supply chains moving, and connecting families and friends across the North and Irish seas and the English Channel. We have been at the heart of this service for years and we are committed to serving these vital routes.
"However, in its current state, P&O Ferries is not a viable business. We have made a £100m loss year on year, which has been covered by our parent DP World. This is not sustainable. Our survival is dependent on making swift and significant changes now. Without these changes there is no future for P&O Ferries.
"These circumstances have resulted in a very difficult but necessary decision, which was only taken after seriously considering all the available options. As part of the process we are starting today, we are providing 800 seafarers with immediate severance notices and will be compensating them for this lack of advance notice with enhanced compensation packages.
"In making this tough decision, we are securing the future viability of our business which employs an additional 2,200 people and supports billions in trade in and out of the UK. And we are ensuring that we can continue serving our customers in a way that they have demanded from us for many years."
