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Daily Mirror
Daily Mirror
Business
Benjamin Lynch

Who owns P&O, why were 800 crew fired and how long had ferry firm been struggling for?

P&O Ferries has faced a mountain of backlash online after it fired 800 of its workforce.

The act was branded a "despicable assault on workers' rights" by shadow transport secretary Louise Haigh, while maritime minister Robert Couts called the act 'insensitive'.

He said: "Reports of workers being given zero notice and escorted off their ships with immediate effect while being told cheaper alternatives would take up their roles, shows the insensitive nature by which P&O approached this issue."

Some workers refused to leave the ships in protest at the decision - as RMT Union directed their workers to stay on board - and P&O hired security personnel to remove them. RMT is now looking into legal action.

MP Zarah Sultana called on the government to intervene in an attempt to save jobs, who were let go in a short Zoom call with no prior warning.

So why were workers fired?

Who owns P&O?

Sheikh Mohammed bin Rashid Al Maktoum previously made headlines for the huge divorce sum he paid to his ex-wife (FARES GHAITH/EPA-EFE/REX/Shutterstock)

P&O Ferries are owned by DP World, a logistics company based in Dubai.

The company paid out a £270 million dividend to shareholders in 2020 and says its values are to make "a meaningful difference to the world".

It bought P&O in 2019, citing the company's poor record as "not sustainable".

DP World operates across the globe and is owned by the UAE government. This means it is under the control of the controversial UAE Vice President and Prime Minister, Sheikh Mohammed bin Rashid Al Maktoum.

In 2021, he was ordered to pay his ex-wife a record divorce settlement after Princess Haya was subjected to a "sustained campaign of intimidation and threat".

Why were the P&O crew fired?

P&O Ferries staff are protesting the mass layoffs after the shocking dismissal (SWNS)

P&O sacked 800 of its staff to replace them with agency workers, claiming the move is necessary in order for the business to survive.

It said: "We have made a £100m loss year-on-year, which has been covered by our parent DP World. This is not sustainable. Without these changes there is no future for P&O Ferries."

It has also stated that services will not be running in the coming days.

The shipping company added: "P&O Ferries services are unable to run for the next few days. We are advising travellers of alternative arrangements. We will update this feed every three hours with the operational situation."

RMT Union is threatening legal action against the company for what it called a 'shameful act'.

How long had the ferry firm been struggling for?

P&O has been struggling year-on-year and reported that it has been losing £100 million every year, with losses covered by owner DP World.

It claimed £10 million in furlough cash from the UK government in the same year DP World paid out a £270 million dividend to bosses.

Due to the backlash and heavily depleted workforce, the next few days will be tricky for the company.

It said: "Regretfully, P&O Ferries services are unable to run for the next few hours. Our Port Teams will guide you and travel will be arranged via an alternative operator."

It has told remaining staff that the company is not going into liquidation after fears were raised when company staff were asked to gather.

"P&O Ferries is not going into liquidation. 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," it told crew.

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