P&O Cruises: Carnival UK accused of putting 900 jobs at risk with 'fire and rehire' notice

Carnival UK, owner of P&O Cruises and Cunard, is being accused of a plan to 'fire and rehire' more than 900 staff in an employment shake-up. Labour's Shadow Secretary of State for Transport has described the news as 'history repeating itself' following the P&O Ferries scandal almost two years ago.

The cruise company told authorities it's ushering in new employment terms and conditions which include salary cuts and flexible working patterns.

The plan is set to affect 919 crew members across 10 vessels including officers on the British flagship, the luxury ocean liner Queen Mary 2, and nine other ships operated under Carnival UK. It comes after a separate travel company, P&O Ferries, fired nearly 800 staff on the spot in March 2022.

The Nautilus union, which represents affected staff, said it began talks with the firm on November 14. According to union members, Carnival UK notified officials about a HR1 form on November 22. The form outlines a company's redundancy plans and must be submitted to the UK government.

Carnival UK said it is 'categorically not making any redundancies' and dismisses reports that it will fire and re-hire staff. The cruise firm added: "This is an annual pay review process with our maritime officers onboard our ships which will ensure alignment. This will empower our staff, deliver the right teams across our fleet and attract and retain talent to work on our ships."

Nautilus said the cruise company wants to cut employee's working days by 20%, leading to a severe drop in income for its members. The union has called for the company to withdraw its plan to "fire and rehire" staff and properly negotiate over changes to employment terms and conditions.

Nautilus's senior national organiser Garry Elliot said the union calls on the "UK government to learn the lessons from P&O Ferries and outlaw the coercive practice of fire and rehire."

He added: "Employers cannot be allowed to treat their employees with contempt and force through fundamental changes to terms and conditions by playing with their employees’ livelihoods.”

The Shadow Secretary of State for Transport, Louise Haigh, has come out in support of Carnival UK employee's, stating the government is to blame for being idle and not stepping in to 'change the law'.

“It has been almost two years since P&O Ferries illegally sacked 800 workers and replaced them with agency workers paid less than the minimum wage," she said. "Now history is repeating itself, the lives of hundreds more seafarers are once again being upended by bad bosses who know they can get away with it."

She added: “Ministers have sat on their hands and ignored warning after warning that this would happen again unless they stepped in to change the law. The blame lies with them.

“Labour will end this cycle and end fire and rehire practices for good.”

The Shadow Secretary's words have been echoed by the Trade Union Congress (TUC) General Secretary Paul Nowakm, who calls for workers rights to be strengthened in employment law.

"After last year’s P&O Ferries scandal - when 800 staff were brutally sacked without notice - the Conservatives promised to clamp down on rogue bosses," he said. "But ministers have not lifted a finger since to strengthen employment law and stop workers from being treated like disposable labour"

UK crew members working for P&O Cruises and Cunard are based out of Southampton and employed via a management office based in Bermuda with the notice of potential mass redundancies being signed off from an official in Mumbai.