P&O Ferries news: Firm denies insensitive behaviour, ‘aims to have services up and running in a day or two’
Letter to employees from P&O CEO says new model will halve crewing costs
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P&O Ferries has once again defended its mass redundancies, announced yesterday, saying it aims “to have the first of our services running again in the next day or two” as it is losing around £1m per day that services do not run.
It also denied insensitive behaviour regarding the removal of employees, saying in a statement this afternoon: “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.”
In a letter to P&O Ferries employees seen by The Mirror, CEO Peter Hebblethwaite said the “new crewing model” would cut crewing costs by 50 per cent, calling it a “very difficult but necessary and pivotal decision, which was only taken after seriously considering all the available options”.
The RMT union is threatening legal action against the firm, calling yesterday’s move one of the “most shameful acts in the history of British industrial relations”.
Meanwhile MPs across each political party, including the transport secretary Grant Shapps, have condemned the ferry firm’s actions.
Read on for the latest news and developments.
More than 200 protesters gather at Liverpool port
More than 200 protesters gathered outside the Port of Liverpool today.
Metro mayor of Liverpool Steve Rotheram, Greater Manchester mayor Andy Burnham and Sefton Central MP Bill Esterson joined the demonstration.
Labour MP Mr Esterson said: “I think we've got amazing solidarity from trade unions across the north of England and local people.
“Like everyone, I'm outraged at the appalling abuse of ordinary people by DP World.”
Protesters held flags and signs, including one which said: “Shame on you!! P&O stop the carve up.”
Lorry drivers on their way to and from the port beeped their horns in support.
Reporting by agencies
‘Struggling financially my foot,’ says Labour MP of P&O
A Labour MP has been scathing about P&O Ferries’ claim that its decision to axe 800 UK staff is due to financial difficulties.
Ian Lavery, MP for Wansbeck, tweeted: “Orchestrated and vicious disregard of @RMTunion working people by @POferries.
“Struggling financially my foot.
“* Shareholders dividend of £240m in 2020
“* 11% increase in revenue last year
“* £147m golf sponsorship
“* £10m Gvt furlough monies
“Revoke all Gvt contracts and licences”.
Government investigating ‘whether P&O acted within the rules'
Downing Street has warned P&O Ferries that there could be “ramifications” over its decision to sack some 800 seafarers.
The prime minister’s official spokesman said the government was looking to see if the company’s actions broke the relevant rules.
“We are looking very closely at the actions that this company has taken to see whether they acted within the rules,” the spokesman said.
“Once we have concluded that, we will decide what the ramifications are. Obviously there are a lot of valid questions in relation to existing contracts, etc.
“We are working through exactly the detail of what action the company took. Once we have have come to that conclusion, we will set out any further steps.”
Reporting by agencies.
Hollyrood Committee calls for ‘urgent update’ from P&O
The convener of a Holyrood committee has called for an “urgent update” from P&O Ferries after 800 staff were sacked by video message.
The decision was announced on Thursday, with the seafarers to be replaced by cheaper agency staff.
Unions and politicians have condemned the move, with Nicola Sturgeon saying on Thursday she made clear her “utter disgust” at the sackings when speaking to P&O chief executive Peter Hebblethwaite.
In a letter to Mr Hebblethwaite on Friday, Net Zero, Energy and Transport Committee convener Dean Lockhart called for more information to be provided before its next meeting on Tuesday.
“The Net Zero, Energy and Transport Committee is extremely concerned about yesterday’s news that around 800 of P&O’s staff have been sacked, reportedly with immediate effect, and that services, including the Cairnryan-Larne line, have been suspended, ruining passengers’ travel plans,” he wrote.
“I am writing to request an urgent update so that the committee may reflect on its immediate scrutiny in relation to this matter.”
The letter asked for clarification of the “full impact” of the decision, as well as its impacts on Scotland and communications with the Scottish Government before or after the announcement.
A similar letter was also sent to Scottish transport secretary Michael Matheson, asking for his reaction to the news and if the Scottish government had any “prior intimation”.
Reporting by agencies.
‘You may understandably feel surprised’: Full P&O letter
The Mirror has published the full letter P&O CEO Peter Hebblethwaite sent out to employees amid yesterday’s redundancies.
In it, Mr Hebblethwaite announces, “As of this morning, we are severing the contracts of all 800 Jersey-contracted seafaring colleagues with immediate effect and will be compensating them for lack of notice with enhanced severance packages.”
He describes the company’s “new crewing model”, saying it will “enable us to better compete and be more responsive to our customers’ needs”.
Here is the wording in full:
“Dear Colleagues,
By now I hope most of you had a chance to hear directly from your leaders and managers about the changes we’re making to our crewing model today to reduce our crewing costs by 50 per cent, secure the future of our business and set it up for growth.
I’m getting in touch directly with all of you today because it’s important that that we all individually understand the changes we’ve made to our business today and why we’ve made them.
Before I get into the detail of the announcement I want to start by thanking you for all you’ve done so far today in handling disruption to our customers, and all I know you’ll continue to do in the coming days. I know it’ll be a challenging few days and your efforts are really appreciated by me and all the leadership team.
Why we’re making changes to our crewing model
As you know, here at P&O Ferries, we play a critical role in keeping trade flowing, supply chains moving, and connecting families and friends across the North and Irish seas and the Channel.
The Channel is a major supply route that delivers 59 per cent of all UK trade with the European Union, with 33 per cent of that trade passing through the port of Dover alone. Alongside these freight movements, 35 million tourists also cross the Channel every year.
These supply routes require both the sea operations and the Channel Tunnel to balance competition, value and service for freight and tourism customers.
We have been at the heart of this service for years and our shareholder and leadership team are committed to serving these routes.
These changes that we’re talking about today are part of DP World’s wider plan to support P&O Ferries to deliver the best for customers across freight and tourism industries. DP World is helping us invest in our future with new ships that will provide a better service for everyone, totalling £250M.
However, in our current state, we are not a viable business. We have made a £100M 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 to protect the future of P&O Ferries, and jobs across the whole business. These circumstances have resulted in a very difficult but necessary and pivotal decision, which was only taken after seriously considering all the available options.
Without the changes we’re making today to our crewing model there is no future for P&O Ferries.
What are the changes and the support available
As of this morning, we are severing the contracts of all 800 Jersey-contracted seafaring colleagues with immediate effect and will be compensating them for lack of notice with enhanced severance packages.
They are being offered support and being encouraged to access our employee assistance programme if they feel they need it, either now or in the coming days. As part of their package, they are also being offered careers advice and support.
Today we have entered into a new partnership with International Ferry Management (IFM) who are an international crewing company, and they will be responsible for providing new crews for all those ships affected by this change. Our new teams of seafaring colleagues have already joined our ships.
Our new crew are now going through a process of intense familiarisation and training programme on our ships, run by IFM. Only when that process has happened, will we gradually return to a normal service safely and securely - upholding our P&O standards and brand.
This new crew model will reduce our crewing costs by 50 per cent and enable us to better compete and be more responsive to our customers’ needs. It is a model that is proven to work across the industry, while still allowing us to retain service and safety levels which are central to our operations.
As well as protecting our future, and jobs across the business we are also guaranteeing our customers a resilient, sustainable and competitive business and securing a quality service to the major trade routes of the UK.
We already have the strong fundamentals in place - the best ships, on the best routes, under the best brand. Several weeks ago we took the first step in transforming ourselves by restructuring our business so we’re set up for growth. The second, and most difficult, step is the one we’re making today – which will make us the most competitive business operator in the industry.
By taking these steps we’re bringing together our years of heritage with the forward thinking of our partner DP World, so that we can unlock the potential of our business for now and the long term.
What’s next?
I appreciate there is a lot to take in, and you may understandably feel surprised by the suddenness of this news.
These changes are so significant we were conscious of the inevitable disruption and uncertainty during any consultation period. Against that background we determined that it was better to take immediate action.
We are currently briefing all the colleagues directly affected whether they are on ships or on leave.
We know that some of you will have family or friends who are directly affected by this announcement so please be assured we’re doing all we can to support them at this time. If you are affected by this news do please take some time to absorb it.
Our Employee Assistance Programme is also available to you 24/7 if you want to speak to someone in confidence either now or in the days to come. The phone number is available in the Q&A document, which is attached and is also available on the Quick Link section of Connexions.
Please refrain from any public comment and direct any external enquiries to our press office, details of which are in the Q&A document. It is also essential that we avoid posting any comments or views on social media.
I am keen to speak to you directly this afternoon, so following this email I will be sending you an invite to join an All Hands call at about 2pm and 6pm today. I will talk through the same content at both so please join whichever call suits you and your working hours best.
We have a Q&A sheet with answers to many of the questions we think might be on your mind at the moment – please take a look here. If you have a question that isn’t covered in our Q&A sheet at the moment please submit your question here. We will then issue an updated Q&A sheet tomorrow and I will also invite you on a further All Hands call to go through your Top 5 questions.
I look forward to talking to as many of you as possible on the two schedule All Hands calls later today.
Kind regards,
Peter Hebblethwaite
CEO, P&O Ferries”
P&O boss says job cuts will halve crewing costs
P&O Ferries will halve crewing costs through by replacing 800 seafarers with agency workers, according to the boss of the ferry operator.
Chief executive Peter Hebblethwaite informed affected staff the move will “secure the future of our business and set it up for growth”.
In a letter obtained by Mirror Online, Mr Hebblethwaite explained: “The changes we’re making to our crewing model today (will) reduce our crewing costs by 50%.”
He wrote that the firm was “severing the contracts of all 800 Jersey-contracted seafaring colleagues with immediate effect”.
He added: “We have entered into a new partnership with International Ferry Management (IFM) who are an international crewing company, and they will be responsible for providing new crews for all those ships affected by this change.
“Our new teams of seafaring colleagues have already joined our ships.
“Our new crew are now going through a process of intense familiarisation and training programme on our ships, run by IFM.
“Only when that process has happened, will we gradually return to a normal service safely and securely - upholding our P&O standards and brand.”
Reporting by agencies.
Jersey connection behind P&O’s immediate redundancies
P&O Ferries has, as far as The Independent is aware, never sailed to or from Jersey. Yet seafarers working for the company on Dover-Calais ships were employed by P&O Ferries (Jersey) Ltd; those on the Hull-Rotterdam route, by P&O North Sea (Jersey) Ltd; and those working on UK-Ireland links by P&O Irish Sea (Jersey).
It is believed that the Jersey location of P&O workers’ jobs is the reason UK employment law cannot be applied to the sudden mass redundancies announced yesterday by P&O Ferries.
Under UK law, if an employer plans to make 20 or more redundancies, it must consult (generally with the trade union). For anything more than 100 redundancies, that is for a minimum of 45 days. But that doesn’t apply to workers employed in Jersey.
P&O Ferries ‘undermining capitalism’, says Rees-Mogg
Cabinet minister Jacob Rees-Mogg said the way P&O Ferries has behaved was “very damaging, very foolish and very improper” and risked “undermining” capitalism.
He told the Tory party’s spring conference: “I believe in a Labour market which is flexible, but employers have duties to behave well and properly and considerately to their employees, and P&O failed in that.”
Mr Rees-Mogg added: “P&O ought to be very careful in behaving this way because it risks undermining the capitalism and free markets which are essential to our prosperity.”
P&O Cruises rejects calls for a rebrand
After the leading British cruising company, P&O Cruises, was unwittingly caught up in the furore about its near-namesake P&O Ferries, some people have called for the Southampton-based cruise firm to change its name.
The broadcaster Joe Lynam asked: “Should the cruises company not rebrand?”
But a spokesperson for P&O Cruises rejected the suggestion, saying “P&O Cruises is owned by Carnival Corporation & PLC and has been so for the past 20 years. We are proud of our history and heritage.”
Pride of Hull boarded by new eastern European crew
The Pride of Hull ferry has been boarded by members of a new eastern European crew, according to Billy Jones, branch secretary for Humber Shipping for the RMT.
“They [the agency crew] still have no right to sail the ship unless they are cleared by the MCA (Maritime and Coastguard Agency),” Mr Jones told The Yorkshire Post last night.
“There’s still a P&O crew on board, a skeleton crew to make sure they don’t take the ship away.”
Mr Jones described P&O’s actions as “almost the end of the British maritime industry”.
Yesterday, the Pride of Hull ferry captain - thought to be Dutchman Eugene Favier - was hailed as a hero for drawing up the gangplanks and sealing his crew into their vessel for five hours.
The crew eventually left the ship shortly after 4pm yesterday.
The Labour MP for East Hull, Karl Turner, this morning tweeted: “P&O’s decision yesterday to sack the crew of the Pride of Hull and on other ships up and down the country, without warning, notice, or consultation, is downright disgusting.
“The people of Hull no longer have pride in that ship or company.”
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