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The Guardian - UK
The Guardian - UK
Business
Gwyn Topham Transport correspondent

P&O Ferries: prospect of fine over mass sackings is ‘less than remote’

A P&O ferry moored at the Port of Dover in Kent.
A P&O ferry moored at the Port of Dover in Kent. The firm said firing its entire UK-based crew without due consultation was a ‘solution to gaining essential operational flexibility’. Photograph: Gareth Fuller/PA

P&O Ferries bosses believe there is “a less than remote possibility” of any fine from the investigation into its mass sackings of 786 workers last year, despite admitting it broke the law.

In its annual report, the Dubai-owned ferry operator said that firing its entire UK-based crew without due consultation “as required under UK employment law” was a “solution to gaining essential operational flexibility”.

Although the then prime minister, Boris Johnson, and other ministers told the Commons that P&O would be fined and prosecuted for its actions in March 2022, P&O’s directors are confident they will escape punishment from the Insolvency Service’s continuing civil investigation.

The government agency dropped a criminal prosecution last year and, according to P&O’s filings, “would need to show that any action it proposed to take was in the public interest and just and equitable.

“The directors consider that it will not be able to demonstrate this and consequentially there is a less than remote possibility of a related economic outflow in relation to any such action.”

There is no provision in the company accounts for any potential financial penalty.

The report said the immediate dismissals of long-serving staff, who were replaced by cheap agency crews from abroad, “were necessary for the long-term financial health of the business” and “public sentiment will gradually recover towards the business as it continues to operate in a transparent and compliant manner”.

It added: “The group aims to maintain a reputation for high standards of business conduct and acting fairly.”

The operator’s accounts for 2021, before the mass sackings, showed pre-tax losses of £375m, up from £103m in 2020 – although owner DP World reported record profits in both 2021 and 2022.

A spokesperson said the figures confirmed the business needed to make changes to survive. He added: “These changes mean we have secured the long-term future of the business, the service our customers rely on and our critical role in keeping the UK connected.”

Maritime unions said P&O must be punished. The RMT general secretary, Mick Lynch, said: “Allowing corporate lawbreakers like P&O Ferries and DP World off scot-free is a profoundly dangerous trend for all workers in the UK and anywhere DP World’s subsidiaries operate.”

The Nautilus International general secretary, Mark Dickinson, said: “In the court of public opinion, they have been condemned and their continued poor financial results reveal the truth of the situation.

“CEO Peter Hebblethwaite and his fellow directors should never be allowed to get away with what they did – their disregard for workers, for UK employment law and for due process is nothing short of a scandal and we await the conclusion of the Insolvency Service investigation.”

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