The stunned reaction to P&O Ferries' decision to instantly sack 800 seafarers and replace them with cheaper agency worker quickly turned to anger and then calls for action. The sight of security guards with handcuffs being called on to remove workers provoked fury across the political spectrum on Thursday.
Ferry services had been suspended ahead of the announcement and remain suspended today. The ferry operator, bought by Dubai-based logistics giant DP World in 2019, insisted the decision to cut jobs was “very difficult but necessary” as it was “not a viable business” in its current state.
The move sparked outrage from workers, many of whom refused to leave ships, leading to those incredible scene of security guards with handcuffs being deployed to remove them. Protests are planned and legal action is being considered.
Rail, Maritime and Transport union (RMT) general secretary Mick Lynch said: “We are seeking urgent legal action and are again calling for the Government to take action to stop what is fast turning into one of the most shameful acts in the history of British industrial relations.”
In the Commons, Transport Minister Robert Courts said the company’s actions were “wholly unacceptable” – a point he said he made “crystal clear” when he spoke to the P&O management.
“I am extremely concerned and frankly angry at the way workers have been treated by P&O,” he said.
Below, we look at some of the headlines following P&O Ferries decision.
Protesting P&O workers clash with motorists
P&O workers in Dover clashed with motorists after blocking a road close to the port in protest at being sacked on Thursday. Dozens of employees who lost their jobs stood on the road with banners and flags saying “Stop the P&O jobs carve up”.
A lorry driver trying to enter the port began shouting and beeping at those in the road, before being told “we’re not moving”. One of the protesters, who had worked for the company for decades, told the PA news agency: “I refuse to move from this road, all this service for nothing.
“The police will have to take me away.” Another man, aged 54, who has worked in ferry engine rooms since the 1980s, told the PA news agency: “I’m fuming, to be honest with you. I’ve known people who’ve been with the firm for years – this is no way to treat people.
“It was just a short message this morning saying you’ve all lost a job, basically, all this service for nothing. I’ve seen coachloads of agency crews waiting in the car park at Hyde services just waiting to come down – it’s as simple as that.
“There’s going to be a protest here. One of the union guys just said if there’s no one working to come along and support.”
Labour MP Karl Turner posted a photograph on social media showing the captain of Pride of Hull addressing workers on the ship. Mr Turner wrote: “They have support right across the city of Hull and the rest of the country, and are determined to stay on board for as long as it takes.”
Government 'can't do anything'
The Government is unable to prevent P&O sacking 800 seafarers and replacing them with cheaper agency staff, a minister has said. Armed Forces Minister James Heappey said the company had behaved “disgracefully” but acknowledged the Government was powerless to stop it.
“I think that is the reality,” he told BBC Breakfast. “The Government anger will mean very little to those who have been sacked. I do feel very sorry for those people.
“I do think P&O have behaved disgracefully and I wish that P&O had given the Government and the unions more opportunity to engage with them to try to save those jobs. Ultimately, it is not something the Government can stop P&O from doing. Now the focus will be on supporting those who have lost their jobs.”
Staff found out via video call
Some of those who lost their jobs were informed of the decision on a video call from a P&O official who said: “The company has made the decision that its vessels going forward will be primarily crewed by a third-party crew provider.
“Therefore, I am sorry to inform you that this means your employment is terminated with immediate effect on the grounds of redundancy.”
Demonstrations planned
A series of demonstrations were expected to take place today against P&O’s “appalling” decision to sack 800 seafarers.
The Rail, Maritime and Transport union (RMT) called for mass trade union and wider public support for demonstrations in Dover, Liverpool and Hull on Friday.
Criticism across political spectrum
Shadow transport secretary Louise Haigh said employers “cannot be given free rein to sack workers and replace them with agency staff”. Conservative MP Huw Merriman, who chairs the Commons Transport Select Committee, urged the Government to do “everything it can to ensure that this appalling employment transaction cannot be completed”.
He added: “Concern remains as to whether this is lawful.”
Transport Secretary Grant Shapps said his officials “will be having urgent discussions with P&O about the situation, particularly of concern for their workers”.
Scottish First Minister Nicola Sturgeon had hit out at the decision and tweeted: “Fire & rehire is an appalling practice & offends the basic principle of fair work.
“I’m deeply concerned at P&O announcement – due to the importance to Scotland of Cairnryan/Larne route obviously, but also the impact on 100s of workers.”
P&O say business was not 'viable'
A spokesperson for P&O Ferries said the company was currently not a “viable business” and 800 seafarers had been handed immediate severance notices with compensation packages for the “lack of advance notice”.
The firm 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.”
Union looking into legal action
Mark Dickinson, general secretary of maritime trade union Nautilus International, said the decision by P&O Ferries to sack 800 workers without notice was “a dark day”. He told BBC Radio 4’s Today programme on Friday: “It is a dark day in the shipping industry.
“I’ve been in this game for over 40 years and I’ve seen some curveballs and some shocking developments over that time, but this is a new low for a shipping company. To treat the due legal process in such an underhand and callous way has shocked me, taken my breath away.”
He also said his union was “actively progressing” preparations for legal action against P&O Ferries alongside the RMT union.
Manuel Cortes, Transport Salaried Staffs Association general secretary, said: “This is absolutely despicable behaviour from P&O, designed to reduce pay and worsen terms and conditions for their staff. They should be ashamed of themselves, treating loyal and hardworking staff like this.”
TUC general secretary Frances O’Grady said: “No one should be laid off with zero notice and no consultation, let alone a whole workforce. P&O’s secret plan to sack their workers is reprehensible and unlawful.
“When an employer lays off more than 100 staff at once they must consult workers and unions in advance and they are required to notify the Secretary of State in writing in advance too. The Government must urgently explain what they knew and when.
“If P&O breached the law they must suffer severe consequences, with ministers increasing the legal penalties if necessary. If one employer gets away with this, every worker is at risk.”
Decision 'appears to contravene requirements needed for mass redundancy'
Tom Long, partner at law firm Shakespeare Martineau, said: “P&O’s decision to fire 800 staff with immediate effect appears to contravene the requirements needed for a normal mass redundancy.
“Where an employer plans to make 20 or more redundancies, there is a requirement for a period of consultation with employee representatives, such as a trade union. That period is 45 days, where 100 or more redundancies are planned in any one location.
“As such, P&O would be expected to undergo this process before making any mass dismissals. It’s not evident whether this has happened, although it would appear not.
“If employees are made redundant they can bring a claim of unfair dismissal in the employment tribunal, with the maximum compensation being up to a year’s salary in most cases.”
About P&O Ferries
P&O Ferries, which transports passengers and freight, operates four routes: Dover to Calais; Hull to Rotterdam; Liverpool to Dublin; and Cairnryan, Scotland, to Larne, Northern Ireland.
DP World was criticised for paying a £270 million dividend to shareholders at the end of April 2020 while P&O Ferries cut around 1,100 jobs as demand for travel collapsed due to the coronavirus pandemic.
