Leaked P&O Ferries memo sent to ministers BEFORE 800 workers were sacked over Zoom claimed move would ensure firm was ‘key player in the UK market for years to come’
- Memo claimed that 2,200 staff would lose jobs if 800 were not fired
- It was ‘widely shared across government’ before the company did the sackings
- Reveals that DfT did nothing to oppose or question the company’s decision
Government officials were told about P&O Ferries’s plan to fire 800 workers ahead of time but were guaranteed it would ‘ensure they remain a key player in the UK market’, a leaked memo has revealed.
The memo, believed to have been written by a senior official, claimed that if the company did not sack the 800 workers then ‘an estimated 2,200 staff would likely lose their jobs’ in future.
It was ‘widely shared across government’, including to the Prime Minister’s office and to Transport Secretary Grant Shapps.
The leaked memo reveals that the Department for Transport did nothing to oppose or question the company’s decision, even though it may have been against the law, the Sunday Times reports.
It states: ‘We understand that P&O Ferries have an intention to try and re-employ many staff on new terms and conditions or use agency staff to restart routes; they estimate disruption to services lasting 10 days.
The memo, believed to have been written by a senior official, claimed that if the company did not sack the 800 workers then ‘an estimated 2,200 staff would likely lose their jobs’ in future. Recently sacked P&O Ferries workers and their supporters march from the local RMT building to the harbour entrance on March 18
‘Without these decisions an estimated 2,200 staff would likely lose their jobs. These changes will align them with other companies in the market who have undertaken a large reduction in staff.’
It comes after P&O Ferries chief executive Peter Hebblethwaite came under fire for declaring ‘only the fittest survive’ after sacking 1,100 workers in response to Covid last May.
He told the Mirror: ‘Only the fittest survive and we had to get fitter. My priority is still to grow our business through our people and our customers.’
News of the leaked memo comes after Tory chair Oliver Downden said of P&O Ferries: ‘I think they should be in no doubt that the Government is considering very closely its relationship with them.’
And he stressed that the government is also looking into whether the abrupt sackings were legal.
It was ‘widely shared across government’, including to the Prime Minister’s office and to Transport Secretary Grant Shapps
Some 800 P&O Ferries workers were told they had lost their jobs with immediate effect in a video recording on Thursday.
Ministers then piled in to blast the company’s decision and its chief executive, Peter Hebblethwaite.
Transport Secretary Mr Shapps and Business Secretary Kwasi Kwarteng wrote to P&O Ferries chief executive on Friday to express their ‘disappointment and anger’ at the mass sacking.
Mr Shapps said he had instructed the Maritime and Coastguard Agency (MCA) to carry out inspections of all P&O Ferries vessels before they return to sea to check the new crews the company has ‘rushed through’ are safe.
TUC general secretary Frances O’Grady said: ‘There was no attempt to challenge P&O Ferries on these unconscionable tactics or even question whether these actions were legal.
‘Ministers, from the Prime Minister down, have serious questions to answer.
‘This a national scandal. It has to be a catalyst for change on workers’ rights.
It comes after P&O Ferries chief executive Peter Hebblethwaite came under fire for declaring ‘only the fittest survive’ after sacking 1,100 workers in response to Covid last May
‘It’s time for the Government to urgently bring forward an employment Bill to stop workers from being treated like disposable labour and make sure what happened at P&O never happens again.
‘P&O has acted appallingly. The company must immediate reinstate all sacked staff with no loss of pay.’
And the Rail, Maritime and Transport union (RMT) has today announced it has discovered a ‘shocking twist’ to the scandal because replacement crews on P&O Ferries ships will be given ‘poverty pay’.
More demonstrations will be held in the next few days, with growing pressure on the company to reverse its decision and the Government to take action.
The RMT said P&O Ferries ships on the Liverpool-Dublin route have now been crewed with Filipino ratings on contracts which pay below the minimum wage.
Shipping companies which are registered in other countries and operating routes from UK ports to Europe can pay below the minimum wage because they are exempt from legislation.
P&O Ferries crisis: The lowdown
What’s going on?
P&O Ferries has made 800 workers redundant and replaced them with cheaper agency staff.
Can it do that?
Unions have threatened legal action and lawyers suggested workers could bring unfair dismissal claims. Tom Long, partner at law firm Shakespeare Martineau, said the move ‘appears to contravene the requirements needed for a normal mass redundancy’.
Booked a ferry?
P&O Ferries was updating guidance over Twitter every half an hour yesterday. On some routes, including Dover to Calais, it advised customers to show up as usual and make their way to check-in booths run by ferry company DFDS. On others, such as between Larne and Cairnryan, the firm suggested customers only travel if essential.
Other options?
If you are travelling in the near future you can book on an alternative carrier. DFDS and Irish Ferries offer routes between Dover and Calais. There are no direct alternatives for the other routes but Stena Line offers services to Ireland and Holland.
Refunds?
The firm has not commented but its terms and conditions say it will refund the ‘total fare’ of a crossing if ‘we cannot ship you at all with us or arrange a suitable alternative ferry crossing, or if you do not wish to take any alternative journey offered by us’.
And P&O Cruises?
P&O Cruises is owned by a different company and is not affected by the disruption.
RMT general secretary Mick Lynch said: ‘The weakness in UK employment law has not only allowed the mass dismissing of UK seafarers it has also incentivised this barbaric behaviour because employers know there may be no effective sanction to stop them doing so, and on top of that they can get away with paying below the minimum wage.
‘P&O may pay more than the minimum wage at first to agency staff but they will eventually move to rates below this simply because there is nothing to stop them from doing so.
‘We fear poverty pay will be accompanied by seafarers being chained to 12-hour day, seven-day week contracts that operate continuously for six months, with no pension.’
Mr Shapps has ordered a review of all the government contracts with P&O Ferries and its parent company, DP World.
And he added that ships would not be allowed to sail with inexperienced crews so has ordered the Maritime and Coastguard Agency to inspect all vessels.
The Department for Transport told the Sunday Times: ‘This was an internal government memo which, as standard practice, outlined what officials had been told by P&O Ferries shortly before their announcement was made.
‘This was sent before ministers were advised of the full details and as soon as they were informed, they made clear their outrage at the way in which P&O staff had been dismissed.
‘It is clear from the memo that our immediate priority was to work with unions to ensure workers’ rights continue to be protected and the transport secretary has urged the company to sit down with workers and reconsider this action.’
A spokesperson for P&O Ferries said: ‘We know that for our staff this redundancy came without warning or prior consultation, and we fully understand that this has caused distress for them and their families.
‘We took this difficult decision as a last resort and only after full consideration of all other options, but, ultimately, we concluded that the business wouldn’t survive without fundamentally changed crewing arrangements, which in turn would inevitably result in redundancies.
‘We also took the view, in good faith, that reaching agreement on the way forward would be impossible and, against this background, that the process itself would be highly disruptive, not just for the business but for UK trade and tourism.
‘We have offered enhanced severance terms to those affected to properly and promptly compensate them for the lack of warning and consultation.
‘The changes we’ve made bring us into line with standard industry practice.
‘All affected crew who were working (at the time) were notified face-to-face and in-person on board their vessels.
‘For crew who were off, P&O Ferries made all efforts to notify them personally: they were individually called on the phone, as well as via email and text.
‘Virtual meetings were also held but only 261 of our 800 affected staff were on those calls.
‘To try to minimise disruption for our customers, we contacted everyone we could reach.
‘If any passengers have any queries about travelling with us, we encourage them to get in touch with our customer services team.
‘The teams escorting the seafarers off our vessels were totally professional in handling this difficult task with all appropriate sensitivity.
‘Contrary to rumours, none of our people wore balaclavas nor were they directed to use handcuffs nor force.’
Source: Read Full Article
