P&O Ferries has sacked 800 employees over video call and plans to replace them with cheap agency staff after racking up losses of £100million a year.
The move has caused furore among union bosses and politicians, with some members of staff refusing to leave one of the ferries in protest and face being hauled off by security staff wearing balaclavas.
The RMT union said the issue was "fast turning into one of the most shameful acts in the history of British industrial relations".
Are you a P&O worker or passenger affected by this crisis? Message sam.barker@mirror.co.uk
A woman whose son and husband work for P&O slammed bosses for the "highly immoral" and "insulting" way hundreds of crew members were made redundant to make way for cheaper agency workers.
Downing Street also condemned the way the 800 members of staff were informed of the company's decision.
Labour MP Diana Johnson told the Commons today the mass lay-offs were "reminiscent of the worst Thatcherite policies".
She told MPs: "I understand from the RMT union that these agency staff, mainly from overseas, are in buses on the quayside with a security firm... wearing balaclavas and taking British crew off these ships."
In a pre-recorded video announcing mass redundancies, staff were told: "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.
The ferry firm has temporarily suspended its services, causing massive delays at ports in Dover and Hull, with customers told to use rivals instead.
The company employs 3,000 workers and has 20 ships.
A P&O Ferries spokesperson said the firm needed to lay off 800 of its workers due to losing £100million year on year.
The spokesperson said P&O is "not a viable business" as it is.
They added: "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 Hull Eugene Favier, the captain of ferry The Pride of Hull, was hailed as a hero when he drew up the gangplanks, sealing himself and staff inside, and refused to let anyone aboard for several hours.
The crew later left the ship when the stand off came to an end.
RMT organiser for Yorkshire and Lincolnshire Gaz Jackson hailed the captain for his decision to stop people coming aboard "for the safety of the crew."
P&O runs 30,000 voyages a year across the English Channel, North Sea and Irish Sea.
The firm has suspended sailings "for the next few days".
It posted on Twitter: "P&O Ferries services are unable to run for the next few days. We are advising travellers of alternative arrangements."
The general secretary of the RMT, Mick Lynch, said: "We have instructed our members to remain onboard and are demanding our members across P&O's UK operations are protected, and that the Secretary of State intervenes to save UK seafarers from the dole queue."
The Department for Transport (DfT) is having "urgent discussions" with P&O, according to the official spokesperson for the prime minister.
The spokesperson added: "It does obviously cause concern for P&O workers, the company is not ceasing to operate and DfT is speaking with them to understand what the potential impact is so there will be further updates later on.”
The Prime Minister’s official spokesman said maritime minister Robert Courts had raised the issue with the company’s chief executive.
The spokesman added: “The way these workers were informed was completely unacceptable.
“Clearly the way that this was communicated to staff was not right and we have made that clear.
“Our sympathies are with these hard-working employees affected during this challenging time who have given years of service to P&O.”
P&O staff on one ferry are reportedly staging a "sit-in" protest on the firm's Pride of Rotterdam ship, in Hull.
The mother of a P&O worker told a Mirror sister title that P&O staff were told they had "five minutes to get their stuff and get off the ships".
Security staff with balaclavas and handcuffs are bracing to remove staff from vessels if they refuse to leave.
Labour MP Diana Johnson said: "This is shameful and it goes against all norms of fair and reasonable behaviour and it's clear that foreign ratings will be employed on terms that are less favourable than our current UK seafarers are.
"And this is about a race to the bottom in terms and conditions reminiscent of the worst Thatcherite policies."
Scottish Trades Union Congress general secretary Roz Foyer said: "This is a damning, outrageous move from P&O and we offer our full support to the RMT union and all their members."
Earlier today the company told its staff by email to expect a major announcement.
The email said: "We will be making a major company announcement today which, with the support of our shareholder DP World, will secure the long-term viability of P&O Ferries.
"To facilitate this announcement all our vessels have been asked to discharge their passengers and cargo and standby for further instructions.
"This means we're expecting all our ports to experience serious disruption today so please bear with us and we will give further information in an all-colleague announcement later today.
"If you're in a customer facing role further information will follow separately on how we would like you to work with our customers.
"Thank you for your patience and support."
This morning a P&O spokesperson denied claims the firm was going bust.
The P&O spokesperson added: "We have asked all ships to come alongside, in preparation for a company announcement.
"Until then, services from P&O will not be running and we are advising travellers of alternative arrangements."
In January The Mirror reported that the billionaire owners of P&O Ferries stood accused of splashing out millions sponsoring a golf contest while ignoring calls to fund the firm's pension pot.
P&O Ferries cut around 1,000 staff during the pandemic, while seeking Covid bailouts.
P&O is owned by logistics firm DP World, which is in turn owned by Dubai firm Port & Free Zone World.
Michael Foote, at travel insurance comparison site, Quotegoat.com, said: “It’s distressing news for P&O Ferries employees and their families. Now is the time to check what redundancy rights you have and dig out any income or mortgage protection policies you hold.
“If you’ve got tickets booked with P&O Ferries and they don’t offer you alternative transport, it’s a good idea to contact your travel insurance company. Not all policies will cover you, but it’s worth reaching out.
“If you paid by debit card, you may be able to make a claim through your Mastercard and Visa Chargeback scheme.
“If you paid with a credit card, you may also be able to claim under section 75 of the Consumer Credit Act 1974. You’ll need to have spent more than £100 on your tickets.
“If you booked with a tour operator and they are a member of ABTA, your money should be protected.”
