Chaos for P&O Ferries as company suspends sailings and SACKS 800 staff with immediate effect

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Hundreds of sacked P&O staff have today held defiant protests and refused to disembark their ships after the shipping company was slammed today after it told 800 crew members they would be replaced by cheaper agency staff with immediate effect over a Zoom call.

Agency workers had already been waiting at docksides ready to board the ferries, but P&O was left red-faced after its existing employees refused to leave the docks over the firm’s ‘treacherous’ decision – which was announced by a company boss via Zoom. 

Stephen Nee, Head of Internal Relations and Employer Relations at P&O, told all 800 stunned staff they were all being made redundant with immediate effect via an online call held at 10.30am on Thursday morning. 

Several workers slammed the ferry firm for ‘scheming behind closed doors before stabbing us all in the back’.  Today, employment lawyers warned the dismissals may well be illegal. 

To help force its staff to disembark, P&O ‘illegally’ hired 16 balaclava-clad and handcuff-trained officers from a private security firm, with the company telling them the job would last a week and be paid at £14.50 an hour. 

Emails sent to security guards drafted in beforehand showed bosses describing a ‘fairly high profile task’ to be dealt with over the course of a week in Dover. Those enlisted were told to bring ‘cuffs and utility belts’ but were informed they would ‘not need body armour for this task’. 

Speaking on Thursday, Karl Turner, MP for East Hull, said P&O Ferries had received £10million from the Government for furloughing 1,100 members of staff during the coronavirus pandemic, and demanded the British taxpayer was reimbursed. 

Union bosses later slammed the firm and said it was ‘a scandal’ that British workers had been betrayed when UK taxpayers were made to foot the bill for the company’s costs during the pandemic. 

Pictures emerged online showing the captain of The Pride of Hull, understood to be Eugene Favier, sealing his crew inside and addressing defiant workers who refused to leave the holdout ship after 800 workers were made redundant with immediate effect. 

Meanwhile, shocking video footage showed the moment dozens of security staff boarded a ferry at Larne port in Northern Ireland to forcibly remove staff who had been staging a ‘sit in’ protest’ onboard.

On Thursday, Labour MP Dame Diana Johnson described how ‘people in balaclavas’ had been seen pulling sailors off the ships. 

She told the Commons: ‘I understand from the RMT union that these agency staff, mainly from overseas, are in buses on the quayside with a security firm, hired by DP World, wearing balaclavas and taking British crew off these ships. This is shameful and it goes against all norms of fair and reasonable behaviour.’ 

Some crew have since moved barriers to stop staff getting onto the boats, the RMT has claimed. 

Meanwhile, dozens of employees have gathered outside the union’s Dover office ahead of a planned protest as a tense stand-off continued between security and angry staff refusing to leave the vessels. 

Fired ferry workers, armed with banners and flags saying ‘Stop the P&O jobs carve up’ clashed with motorists this afternoon after blocking a road close to the port of Dover.  

A lorry driver trying to enter the port began shouting and beeping at those in the road, before being told ‘we’re not moving’.

One of the protesters, who had worked for the company for decades, later said: ‘I refuse to move from this road, all this service for nothing. The police will have to take me away.’

Another 54-year-old former P&O employee, speaking on the condition of anonymity, explained: ‘There’s going to be a protest here, one of the union guys just said if there’s no one working to come along and support.

‘I’m fuming, to be honest with you. I’ve known people who’ve been with the firm for years – this is no way to treat people.

‘It was just a short message this morning saying you’ve all lost a job, basically – all this service for nothing.’ 

Mick Lynch, the union’s general secretary, insisted union workers would hold firm. ‘We have instructed our members to remain onboard and are demanding our members across P&O’s UK operations are protected and the Secretary of State intervenes to save seafarers from the dole queue,’ he said. 

Labour MP Karl Turner posted a photograph of a coach which he stated contained ‘new foreign crew waiting to board the Pride of Hull’ at King George Dock, Hull.

Members of the RMT union are ‘sitting onboard the vessel’, so the new crew ‘will not be boarding her’, he wrote, adding: ‘We understand that both current officers and ratings are to be sacked.’ 

Mr Turner said the Pride of Hull’s captain had vowed not to let police board the vessel if P&O asked them to do so.  

P&O Ferries confirmed it had handed 800 staff severance notices, adding that it was losing £100m year on year and its survival was ‘dependent on making swift and significant changes’. 

It preceded the announcement of job losses by dramatically ordering all its ships back to port and kicking off bemused passengers with little warning. 

An employment lawyer said P&O’s decision could be legally defensible if it could prove it was crucial for the company’s survival, but it could still be challenged. 

Huge queues of lorries stretching back more than three miles were seen on the A20 at Dover and later at Calais, a route that handles one third of the UK’s trade in goods with the UK including large amounts of perishable food.  

One P&O worker, who was among the 800 staff invited to an online meeting entitled ‘important employee announcement’, slammed the firm’s actions.

The father-of-two in his 20s, who lives in Dover and wanted to remain anonymous to protect his redundancy package, said: ‘I had to switch it off. I couldn’t watch it to the end. 

‘Within about a minute and a half of being on it, they told us we were being sacked. I can’t even remember exactly what he said as it’s all a blur. But I just turned it off there and then.  

Darren Procter, RMT’s National Secretary, said the union would be fighting P&O’s decision until it was resolved and called on the Government to provide additional support.

‘Some people have been working for P&O for 20, 30 years. They’ve got kids, mortgages. The way P&O has gone about this has been appalling’, he told Sky News on Thursday.

‘You can expect more disruption in Dover, and around the UK, as a consequence of how P&O and their actions and how they have treated their employees today,’ he added.

Maritime union Nautilus International’s general secretary Mark Dickinson added: ‘The news that P&O Ferries is sacking crew across its entire UK fleet is a betrayal of British workers. 

‘It is nothing short of scandalous given that this Dubai-owned company received millions of pounds of British taxpayer’s money during the pandemic.’ 

Ministers are ‘very concerned’ about the unfolding situation, with Transport Secretary Grant Shapps announcing he was holding urgent talks to reduce disruption to the flow of goods between Britain and France. He will deliver an emergency statement at 5pm. 

Downing Street today condemned the way P&O Ferries informed 800 staff they were being sacked to be replaced with cheaper agency workers.

The Prime Minister’s official spokesman said maritime minister Robert Courts had raised the issue with the company’s chief executive.

‘The way these workers were informed was completely unacceptable,’ the spokesman said.

‘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.’

Meanwhile, Labour MPs slammed the company for a ‘scandalous misuse of power’ and ‘absolutely despicable’ behaviour. 

Shadow Transport Secretary, Louise Haigh, called it a ‘betrayal of the workers that kept this country stocked throughout the pandemic’. ‘Unscrupulous employers cannot be given free rein to sack their workforce in secure jobs and replace them with agency staff,’ she added.   

P&O Ferries has nearly 4,000 workers and in May 2020 warned it could sack 1,100 of them due to Covid. It received £33m of emergency funding to carry on sailing, but has continued to struggle financially. 

Today, the firm said customers with existing bookings should still show up and they will be provided with alternative transportation.  

The redundancies could hardly come at a worst time for workers, with a cost of living crisis fuelled by rising inflation that today saw the Bank of England raise interest rates to 0.75%. 

Joseph Lappin, Head of Employment at UK law firm Stewarts, said it ‘remained to be seen’ how P&O could justify the dismissals. 

‘Why now and why so suddenly? Based on the limited information available to us, it looks like the dismissals will be both substantively and procedurally unfair, giving rise to claims of unfair dismissal,’ he said. 

‘However, if P&O can demonstrate that the sudden dismissals are necessary and crucial to the survival of the business, perhaps to deal with the pressures imposed on the company by Brexit, rising energy costs and the pandemic, an Employment Tribunal might find that P&O’s conduct was reasonable.’

Other employment experts warned that because the majority of staff will be considered ‘seafarers’, meaning they fall under the Maritime Labour Convention as opposed to regular land-based employment practices, P&O have likely cleared all their legal hurdles. 

Dylan Roberts tweeted: ‘The P&O Ferries debacle: Whilst I expect the workers will be classed as seafarers and fall under the Maritime Labour Convention (so different to land-based employment), this appears to be a great example of how not to do this, especially for a consumer driven organisation. 

‘These ‘firings’ will likely prove entirely legal with few avenues to challenge, but P&O Ferries have been very poorly advised in their approach and will realise, over the coming weeks, that employer brand and consumer brand are the same thing.’ 

P&O Ferries is owned by Dubai-based logistics giant DP World. The CEO of DP World is Sultan Ahmed bin Sulayem – whose firm reported a $896million (£683) profit last year and soaring revenues. 

P&O operates four routes: Dover to Calais; Hull to Rotterdam; Liverpool to Dublin; and Cairnryan, Scotland, to Larne, Northern Ireland. Sailings between Hull and Zeebrugge, Belgium, were axed in January 2021.

The firm carried 10million passengers a year before the pandemic and about 15% of all freight cargo in and out of the UK.

But like many transport companies has been struggling with the legacy of Covid. It warned in May 2020 that around 1,100 workers could lose their jobs as part of a plan to make the business ‘viable and sustainable’.

It comes as the captain of the giant P&O ferry, The Pride of Hull, was hailed a hero today for drawing up his gangplanks and refusing to allow police or new crewmen to board his vessel in the port of Hull. 

The ship normally carries a crew of 141 people aboard and is one of the biggest ferries in Europe – making regular crossings between Hull and the Dutch port of Rotterdam.

Hull’s Labour MP Karl Turner said the captain had taken matters into his own hands and was now operating under maritime law to prevent anyone coming aboard. He added that those on the ship had enough food supplies to last ‘as long as it takes’ to resolve the dispute.

He said: ‘I’m told by Gaz Jackson, who is the RMT official who is sitting in on the ship, he’s effectively locked in with the ship and the crew.

‘He’s saying the captain is refusing to allow the police to enter the ship. Members have said to me that the vessel has got enough supplies to feed the crew for as long as it takes.

‘As far as I understand in maritime law, even though that vessel is in a port, that captain is still entitled under maritime law to refuse any person onto his vessel.’

Mr Turner said added that staff on the ship had been treated with ‘utter contempt’ P&O, which is owned by Dubai-based logistics giant DP World.

He added: ‘They’re treating British ratings with utter contempt, and they’re treating the British government with utter contempt as well.’

RMT general secretary Mick Lynch warned: ‘We are receiving reports that security guards at Dover are seeking to board ships with handcuffs to remove crew so they can be replaced with cheaper labour.

‘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.’

P&O customers were left blindsided by the sudden suspension of services, with Robert Colvin – a Unionist councillor from Northern Ireland – left struggling to get to a family funeral in Scotland. 

Meanwhile, one driver in Calais due to return to the UK said he had been waiting for a ferry since 6am.

‘More than anything I’m frustrated at the fact nobody from P&O was there to help and advise … I’ve never had such shoddy service from anybody.’

The driver, who wished to remain nameless, said he had been able to rebook with DFDS, saying: ‘I’ve had to exit the port and go through the entire process again, not to mention paying for another ticket at a higher price with them.

‘I’m getting very frustrated, which is understandable in my situation, I’ve no idea what’s going on. Usually I’d be let onto a DFDS boat, all of a sudden I’m not longer allowed on. 

‘I would have appreciated somebody at least telling us what to do’, he added. 

P&O prepared for the redundancies by recruiting heavies from a private security firm in case of a ‘backlash’ among staff. 

An email send to guards beforehand, seen by the Telegraph, said: ‘You have been selected to deploy on a task in Dover that will be fairly high profile. This task will run for 1 week…

‘As of the 17th you will be dispatched by coach to Dover docks to assist the client in their delivery…

‘I am limited on information I can provide due to a non-disclosure agreement however, the client we are assisting requires 16 officers (handcuff-trained) to support their security teams in the unlikely event some of their staff become challenging. Essentially, our client will be informing staff of redundancies and there is a possible risk of backlash…

‘You will all need your uniform including cuffs and utility belt. You will not need body armour for this task.’ 

MPs and union leaders today lined up to hammer P&O bosses for their ‘fire and new hire’ tactics. 

Shadow Business minister Bill Esterson said: ‘P&O sacking their entire workforce and replacing them with agency staff is an appalling abuse of people. Fire and rehire is a disgraceful practice. This is even worse. It’s fire and new hire.’

Huw Merriman, Chair of the Transport Select Committee, said: ‘The developing story that P&O may terminate the employment of hundreds of crew members to replace them with overseas labour is deeply concerning. 

‘The Government must do everything it can to ensure that this appalling employment transaction cannot be completed. Concern remains as to whether this is lawful. 

‘Firing loyal staff and replacing them with cheaper labour sourced from elsewhere is not a model that the public will wear. That model was not acceptable when our national flag carrier airline attempted to adopt it, and it is not acceptable now. 

‘The Government should make it clear that it will not condone this behaviour. P&O’s parent company, DP World, must understand that British customers won’t do business with companies that treat their staff with contempt.’ 

STUC 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.

‘We cannot – and will not – permit hundreds of workers to be sacked on the spot to be replaced by cheaper labour whilst P&O scramble to remain viable.

‘We need to see an urgent statement from both the UK Government and the Scottish Government on how they intend to halt this scandalous misuse of employer power.’

City of Durham MP Mary Kelly Foy called the company’s behaviour ‘absolutely despicable’. 

Manuel Cortes, TSSA General Secretary, said, ‘This is absolutely despicable behaviour from P&O, designed to reduce pay, and worsen terms and conditions for their staff. They should be ashamed of themselves, treating loyal and hardworking staff like this.

In any civilised country these actions would not only be unlawful but punishable in the harshest possible terms. Sadly, I doubt the Tory government will lift even their little finger to ensure this happens.

‘I’m sending our union’s solidarity to the members of our sister unions being treated in such a despicable way by this dishonorable employer . I am also putting the rest of the ferry sector on notice: TSSA will fight any attempt to replicate P&O’s disgraceful behaviour tooth and nail’. 

Meanwhile, business leaders warned the decision was another blow to UK exporters and the travel industry following the ravages of Covid.  

Anton Gunter, managing director of Telford-based Global Freight Services, said: ‘The decision by P&O Ferries to cancel all its services will cause major delays for businesses and the impact will be felt very swiftly. 

‘As one of the largest carriers of freight and passengers between the UK and Europe, it’s another major blow for businesses who were just getting back on track after the knock-on-effects from Covid and Brexit.

‘Our advice to all businesses affected by the service cancellations would be to communicate with their customers as soon as possible to explain the situation and do their best to manage expectations around the delays.

‘Of course, this is also a worrying time for all staff employed by the ferry operator and we hope that any further announcements made by the company have their best interests at heart.’ 

Transport Secretary Grant Shapps addressed the situation in the Commons this morning, telling MPs: ‘I understand they have temporarily paused their operations and that’s causing disruption at the short straits – Calais-Dover – as well as some other ports.

‘I’m working with the Kent Resilience Forum and I’ve just instructed them to become intricately involved, and other partners in this, and we’ll be taking steps later today – including ensuring that my officials will be having urgent discussions with P&O about the situation, particularly of concern for their workers.’ 

P&O Ferries said: ‘The company plays a critical role in keeping trade flowing, supply chains moving, and connecting families and friends across the North and Irish seas and the English Channel. We have been at the heart of this service for years and we are committed to serving these vital routes.

‘However, in its current state, P&O Ferries is not a viable business. We have made a £100m 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.

‘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 making this tough decision, we are securing the future viability of our business which employs an additional 2,200 people and supports billions in trade in and out of the UK. And we are ensuring that we can continue serving our customers in a way that they have demanded from us for many years.’ 

The company that would become P&O was founded in 1837 after signing a government contract to transport post by boat between London and the Iberian Peninsula.