LONDON (Parliament Politics Magazine) – P&O Ferries is facing a backlash after the company abruptly fired 800 employees without warning.
The government announced it will evaluate its agreements with P&O Ferries after the company sacked its employees and replaced them with less expensive government personnel.
Unions slammed the firing, calling it a “dark day” for the maritime sector.
P&O said the choice was difficult, but the company would not be able to survive without the modifications.
P&O Ferries’ actions, on the other hand, were characterised as “disgraceful” and “callous” by a chorus of cross-party MPs.
On Thursday, over a fourth of P&O Ferries’ employees received a video message informing them that it was their last day of work.
The RMT union called it “one of the most shameful acts in British industrial relations history.” Protests are scheduled on Friday in the ports of Hull, Dover, and Liverpool.
Andrew Smith, a 22-year employee of P&O Ferries, described his feelings as “utter dismay.”
Both the Nautilus and the RMT unions are exploring legal counsel on the dismissal in addition to participating in Friday’s demonstrations.
P&O Ferries may have broken employment law, according to Beth Hale, a partner at employment law firm CM Murray.
She told BBC that the company should have talked with employees and unions about prospective layoffs and informed the government that lots of jobs were in jeopardy.
Sacked employees said the video communication mentioned a “generous severance package,” but no details were provided.
The unexpected decline in capacity is unlikely to affect key commodities and services, according to Maritime Minister Robert Courts, but travellers can face some inconvenience in the following days.
The firm has said that services would be unavailable for the next few days.
Former transport minister Sir John Hayes also slammed P&O Ferries’ callous and negligent choice, suggesting that the government should reclaim any funds given to the company during the epidemic in order to reverse it.
In 2020, P&O Ferries claimed about £15 million in government assistance, including furlough benefits for its employees.
Before the epidemic, P&O Ferries was one of the UK’s largest ferry operators, transporting more than 10 million people and 15% of all commercial goods in and out of the country.
In 2019, DP World, a multi-national ports and shipping firm based in Dubai, purchased P&O. Sultan Ahmed Bin Sulayem, the company’s chairman, who characterised it as a “strong and recognisable brand” at the time of purchase.
In 2020, it distributed a £270 million dividend to stockholders.
However, like many other transportation companies, it witnessed a drop in demand during the epidemic.
After a drop in bookings, it said it will lose 1,100 positions just a few months after the dividend announcement.
Image via BBC
