P&O Ferries will halve crewing costs through its decision to replace 800 seafarers with agency workers
(Picture: PA Wire)P&O Ferries’ decision to sack its 800 British crew and replace them with agency staff is scandalous.
The operator of Channel crossings cancelled all ships yesterday morning and told staff to expect a “major company announcement”. The big announcement was they were all fired on the spot.P&O claims it had made “very difficult but necessary decision” to “secure the future viability of our business”.“
We have made a £100 million loss year-on-year, which has been covered by our parent DP World,” it said. “This is not sustainable.”
That might sound reasonable until you take even the most cursory look at DP World’s finances. Last week — last week! — the company was shouting about “record” results, with profits up 15% to $3.8 billion and a healthy margin of 35.5%. It is owned by Dubai’s sovereign wealth fund, which has assets of £200 billion. This is hardly breadline stuff.
Yes, P&O has been loss-making for the last few years. But they have been exceptional years. First Brexit, then the pandemic meant there was a major slump in business. But Brexit disruption is easing and travel is booming as people get back into the swing of holidays. These measures would be drastic even in normal times but in the context they look ludicrous.
Restructuring may still be warranted but the wholesale firing of all staff to be replaced by cheap labour is beyond the pale. Trying to use the plight of your sovereign wealth-backed owners as a fig leaf for the actions is even worse.
P&O seems certain to face a legal challenge and, if experts are to be believed, will likely lose. But history shows us staff will probably still suffer in the long run anyway.
The Government must step in to support the sailors left at the port — and fix the rules to stop more scandals like this happening in future.
