P&O Ferries has fired 800 seafarers as it is 'not a viable business' in its current state - reporting a £100m loss year on year.
The leading UK ferry operator P&O Ferries, whose crossings include Hull to Rotterdam, has sacked its crew across its entire fleet after stopping all its sailings today, Thursday.
Sailings have been suspended 'for the next few days', it said.
Unions have slammed the decision as a 'scandalous betrayal', and instructed workers currently onboard ships not to leave.
The RMT Union is blocking roads in Dover, urging motorists and HGV drivers to show their support for workers affected by P&O Ferries's announcement today.
It is understand P&O employs 3,000 workers and has 20 ships.
Coaches carrying agency workers hired to replace them and security staff are parked near ships at ports in Dover and Hull.
.@POferries have apparently instructed their crews both ratings and officers to tie up vessel’s as they are making a ‘major’ announcement today. This is troubling for crews and their families. I am in contact with ratings and officer unions regarding this. pic.twitter.com/W2Kh5WNval
— Karl Turner MP (@KarlTurnerMP) March 17, 2022
P&O Ferries, which is owned by the Dubai-based DP World, earlier told crew to return to port and await a major announcement.
Then, in a statement, the company said: “In its current state, P&O Ferries is not a viable business.
“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.”
It added that after 'seriously considering all the available options' it has taken the 'very difficult but necessary decision' to hand immediate severance notices to 800 seafarers.
Those fired will be compensated for the lack of notice with 'enhanced compensation packages'.
It is understood workers were told the news via Zoom.
Union RMT said crew members were being replaced with foreign labour.
Labour MP Karl Turner, for East Hull, said new foreign crew were waiting to board the Pride of Hull while the current crew onboard have begun a "sit-in".
BREAKING: I’m hearing that the captain of the Pride of Hull will refuse to allow the police to board the vessel if @POferries ask them to do so. #POFerries. The official sit in of the ship is supported by both @nautilusint members (officers) and @RMTunion members.
— Karl Turner MP (@KarlTurnerMP) March 17, 2022
Union members have been told to stay on board their vessels once they have docked or risk being 'locked out of their jobs, with RMT spokesman Geoff Martin saying: "We are digging in for the long-haul. We are determined to fight."
P&O is the leading ferry operator on the crossing from Dover to Calais, the main sea link from Britain and Europe, and covers the Liverpool to Dublin and Cairnryan in Scotland to Larne crossings.
Mr Turner, MP, has condemned P&O's 'disgraceful actions' in Hull and ports across the country, with Hull's three MPs writing to Grant Shapps, highlighting 'the immediate need for strong action by the UK government'.
In response to P&O's disgraceful actions in Hull and ports across the country, Hull's 3 MPs have written to @grantshapps. We need urgent action from Government to force P&O and DP World to stand down their replacement crews and private security. pic.twitter.com/ug3LYhqnJp
— Karl Turner MP (@KarlTurnerMP) March 17, 2022
What are the legal implications of this action?
Adam Pennington, senior associate solicitor specialising in employment law at Stephensons, said compassion and empathy for the 800 staff losing their jobs 'isn’t immediately obvious in this case given the way staff appear to have been informed'.
“What is also concerning is that it appears P&O may have failed to comply with their legal obligation to consult with those members of staff before making them redundant," he said.
Adam Pennington
"In circumstances where an employer proposes to make 20 to 99 redundancies, the employer must consult with staff for at least 30 days before the first dismissal takes place.
"Where 100 or more redundancies are proposed, as in this case, the minimum period of consultation is 45 days.
“A failure to inform and consult with members of staff at risk of redundancy can give rise to a number of claims including unfair dismissal and claims for a ‘protective award’ for failing to comply with the minimum consultation periods.”
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