P&O Ferries: what has the UK Government said about redundancies at company - reaction to announcement

The Rail, Maritime and Transport Union (RMT) have alleged that Indian seafarers have been hired to replace sacked P&O staff are only being paid only £1.81 per hour.

The union made the claims after 800 members of staff were made redundant on the spot via a Zoom call.

The company is accused by MPs to have made use of ‘fire and rehire’ practices after it was revealed that they were to use cheaper, third-party agency staff on their ships.

The UK Government preivously branded the decision “wholly unacceptable”.

P&O have been criticised for their apparent ‘fire and rehire’ practice, after it was also revealed that they plan to replace workers with cheaper, third-party agency staff.

What has the RMT Union said?

Speaking about the situation, RMT general secretary Mick Lynch said: “The news that the seafarers now on ships in British ports are to be paid 2.38 dollars an hour is a shocking exploitation of those seafarers and another gut-wrenching betrayal of those who have been sacked.

“The rule of law and acceptable norms of decent employment and behaviour have completely broken down beneath the white cliffs of Dover and in other ports, yet five days into this national crisis the Government has done nothing to stop it.

“These ships of shame must not be allowed to sail. The Government has to step in now and take control before it’s too late.”

MPs have roundly condemned the move from P&O Ferries.

What has the UK Government said about P&O Ferries redundancies?

In a debate about the issue on Monday 21 March, business minister Paul Scully said that P&O redundancies appear to be “worse” than straightforward fire and rehire practices.

He said: “The P&O Ferries situation, unlike other examples that have been cited in this place over the last year or so, doesn’t appear to be simply fire and rehire. It’s worse, it seems to be just fire without the required consultation, without the required notice and without any definite prospect of further employment.

“It would appear that hard-working British workers were given no choice, no notice and were instead immediately dismissed. There are reports that they may be replaced by cheaper labour from overseas.

“The point is whatever P&O have done appears to be in breach of existing laws, within UK jurisdiction. It’s not because we haven’t passed new ones.”

Transport secretary Grant Shapps said that the company could face “criminal prosecution and unlimited fines” for their method of redundancy.

He said: “For our part we’re reviewing all Government contracts with P&O Ferries as a matter of urgency and with DP World and, where possible, we’re looking to use other providers if indeed there are any contracts where the UK Government is involved; I believe at this point that they have been historic in nature rather than current.

“We’re considering further steps we can take to remove P&O Ferries’ influence from British maritime, including positions on any advisory boards because again I don’t want to see that company, with the way the management has behaved, advising the way that British maritime is shaped and rolls out.”

Transport minister Robert Courts previously spoke about the situation in the House of Commons, saying: “These are hardworking, dedicated staff who have given years in service to P&O.

“The way they have been treated today is wholly unacceptable and my thoughts are first and foremost with them.

“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 way in which P&O have approached this issue, a point I have made crystal clear to P&O’s management when I spoke to them earlier this afternoon.

“I am extremely concerned and frankly angry at the way workers have been treated by P&O.”

What has the reaction to the announcement been?

Shadow transport secretary Louise Haigh urged the government to step in an help workers affected by the announcement.

She said: “There are images circulating of what we are told are handcuff-trained security, some wearing balaclavas, marching British crew off their ships. This is not a corporate restructure, it’s not the way we go about business in this country.

“It is beneath contempt. The action of thugs. It is quite simply a scandal that this Dubai-owned company, which received millions of pounds of taxpayers’ money in the pandemic, without consultation and without notice, have upended the lives of 800 British workers, all while the profits of their owners, DP World, soared by 52% in the first half of 2021.

“We need a clear, unequivocal statement from the Government. No ifs, no buts. An overseas conglomerate cannot not be given free rein to sack workers in secure jobs here in Britain at the click of a button and replace them with agency staff.

“The Government must not give the green light to this appalling practice and must act now to secure the livelihoods of these workers, not signpost them to the Department of Work and Pensions.”

She added that the fire and rehire practices which the company appear to be making use of are a “cruel consequence” of the government not outlawing such practices.

She said: “For far too long, this Government has sat on their hands and chosen to side with bad bosses by failing to take action to outlaw fire and rehire. This is the cruel consequence of a decade of attacks on workers’ rights.

“No more excuses. It’s time for ministers to keep the promises they have made, deliver for workers’ rights, and outlaw fire and rehire without delay.”

RMT Union announced that they were looking to pursue legal action against P&O for the way in which staff were made redundant.

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.

“If this happens at P&O it can happen anywhere, and we are calling for mass trade union and wider public mobilisation and protest against the company.”

What have P&O said?

P&O have said that the decision was “very difficult but necessary” and that it was “not a viable business” in its current state.

In a statement, the company said: “We have made a £100 million 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.”

The company have also not commented on the pay of agency workers.

A message from the editor:

Thank you for reading. NationalWorld is a new national news brand, produced by a team of journalists, editors, video producers and designers who live and work across the UK. Find out more about who’s who in the team, and our editorial values. We want to start a community among our readers, so please follow us on Facebook, Twitter and Instagram, and keep the conversation going. You can also sign up to our email newsletters and get a curated selection of our best reads to your inbox every day.