A minister has said it would be “the right thing to do” for ferry operator P&O to hand back £10 million in Government furlough payments following its “disgraceful” decision to sack 800 staff on Thursday without warning.
The move by P&O, which is owned by Dubai-based logistics giant DP World, to sack the sailors and replace them with cheaper staff sparked outrage from union bosses and politicians on all sides.
The lack of consultation with staff, unions and the Government has led to calls for the company to reimburse £10m it received in furlough cash during the Covid pandemic.
The support was paid out by the Government after the firm’s ferry services, a crucial transport link between the UK and Europe, had to be slashed during Covid lockdowns and because of travel restrictions.
On Friday morning Defence Minister James Heappey branded the company’s behaviour and lack of consultation “horrendous” and urged the Treasury and Department for Transport to claw back the £10m furlough cash.
“It certainly feels to me that it would be the right thing to do for P&O to hand that money back and I am sure that colleagues at the Treasury and Department for Transport will be looking into it.
“It’s absolutely disgraceful behaviour by P&O.
“As far as I know from my colleagues around Government, the Government didn’t get much more notice than the employees of P&O did.
“My great friend Robert Courts the Transport Minster was in the Commons yesterday and I could see from the expression on his face that he was angry he was at the way P&O handled this, most importantly for the people who were fired, but actually its shoddy for them to do that and not give the DfT notice.”
However Mr Heappey admitted that beyond offering the sacked employees support there was little Ministers could do to reverse P&O’s decision.
“Sadly it’s the case that the government cannot force an employer to continue to employ people it has said it doesn’t want to continue to employ,” Mr Heappey told Sky News.
He said the Government was “seeing what they can do to make the situation better” but he added: “The reality is that P&O have made a commercial decision and as much as we disagree with it, I fear for those workers they have been badly let down.
“Our primary concern should be those 800 people who have lost their jobs and make sure they are supported into employment.”
P&O said it took the decision - delivered by staff via a zoom video call - after it suffered losses of £100m following the travel slump caused by the pandemic.
The firm said early on Friday it would not be able to operate services "for the next few days" from Dover to Calais, Hull to Rotterdam, Liverpool to Dublin, and Cairnryan, Scotland, to Larne, Northern Ireland.
It advised those already at Dover and Calais to make their way to the check-in booths for Danish firm DFDS, but there were no such instructions for those at Hull, Rotterdam, Liverpool, Dublin, Cairnryan or Larne.
The Labour MP for Kingston upon Hull East Karl Turner called on the Government to force P&O to "come up with a different plan".
The Rail, Maritime and Transport union (RMT) said it was seeking legal advice to challenge the sackings.
It said the UK has seen one of the most "vicious examples of despotic employer behaviour" and one of the most shameful episodes in its recent industrial history.
In a message to RMT members, general secretary Mick Lynch said: "It was with deep shock that I learned the news of the wholesale job cuts taking place at P&O Ferries, but I am sure that my shock was nothing as compared to the devastation this news brought to you and your colleagues."
He added: "This appalling situation has arisen as a result of DP World wishing to maximise their profits and the failure of the Government to intervene and protect the jobs of you and your colleagues."
Conservative MP Huw Merriman, chairman of the Transport Select Committee, said P&O had shown "contempt" for its staff.
"If they do not reverse immediately and reinstate the employees and follow proper process, it's hard to see a way back for them commercially," he said.
