P&O Ferries' job cuts a 'PR disaster', say experts

Protests outside the London office of P&O Ferries' Dubai owners DP World

P&O Ferries may save money by laying off 800 workers and replacing them with cheaper agency staff but it's come at a huge cost to its brand, experts warn.

"It's the worst example of how to treat employees I've seen in more than 30 years of doing crisis communications," says Stuart Bruce, who advises companies on their PR strategy.

In just a few hours the company became a case study in how not to handle a difficult situation, experts say.

P&O said cuts were needed to survive.

"The plan seemed to be: Sack 800 staff with immediate effect by three-minute video message; manhandle those who refuse leave their posts (using handcuffs if necessary); leave customers stranded in various ports because there's no one to crew ships; and replace all staff with cheap labour in a few weeks. What could possibly go wrong?" says Kate Hartley, author of "How to Communicate in a Crisis".

P&O Ferries on Friday said none of its people were directed to use handcuffs nor force and it "offered enhanced severance terms to those affected to properly and promptly compensate them for the lack of warning and consultation".

• Dover MP heckled by angry P&O Ferries protesters

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Protests outside the London office of P&O Ferries' Dubai owner DP World

'Less collegiate'

However, Ms Hartley, who co-founded social media crisis management firm Polpeo, said there's an old adage in the world of PR - that you can't communicate your way out a crisis that you behaved your way into - and that P&O has behaved its way into one of the worst corporation crises she has seen in recent years.

P&O Ferries is owned by Dubai logistics giant DP World which is, in turn, controlled by the Dubai sovereign wealth fund. Stuart Bruce says it's hard to believe any PR adviser, however junior, would recommend such a "bungled" course of action.

"I think it's being driven by DP World where there will be a less collegiate style of management.

"PR professionals can't force employers or clients to heed their expert counsel and act on it... this is not a PR failure, it's a failure of humanity. The leadership of P&O Ferries and DP World shouldn't need lessons in how to be decent or moral," Mr Bruce added.

Video message

For PR consultant Abby Mangold, the biggest mistake was the pre-recorded message delivered to workers.

"It's not the way you tell hundreds of people they're fired. Yes, there were staff in multiple locations but at the very least, have the courage to do it live, and demonstrate recognition of how devastating this news is going to be for them.

"Then. you take the time to talk to your people, without ambiguity or spin, about why you've had to make this difficult decision."

Last year the boss of US mortgage company, Better.com, who fired hundreds of his staff in a Zoom meeting was forced to apologise for the way he handled the lay-offs.

P&O Ferries' behaviour has united unions and politicians in outrage.

In a letter to the company, the Business Secretary, Kwasi Kwarteng, said it had given the company a bad name.

'Huge reputational impact'

There have been more than 3,000 mentions of #boycottpando on social media with a reach of about 3.5 million in the last 24 hours, notes Abby Mangold.

"Every crisis is digital. P&O have failed to have any social [media] strategy at all. This will have huge economic as well as reputational impact," she said.

Protests against the P&O Ferries job cuts in Dover on Friday

But as the howls of protest grow louder, will customers give this ferry operator a wide berth? Or will this episode be forgotten about in a year or two's time?

European trucking firm Girteka Logistics operates more than 9000 trucks, mostly on international routes across Europe - with hundreds transported on ferries every day.

Simonas Bartkus, head of marketing and communications at Girteka Logistics, says his business would not stop using P&O because it has to rely on the capacity the ferry operator provides on key routes into the UK.

But there could be potential long-term implications from the fall-out of the P&O Ferries sackings if owner DP World has any future aspirations to expand its business in the UK.