P&O Ferries: Scottish government to review contracts after sackings

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P&O ferryImage source, Getty Images
Image caption,

P&O's ferries remain in dock following the announcement of mass redundancies

The Scottish government is reviewing all publicly-funded contracts with P&O Ferries after the operator sacked 800 workers without warning.

Staff have been protesting after being told by video message on Thursday that it was their final day of employment.

All P&O sailings between Cairnryan in Dumfries and Galloway and Larne in Northern Ireland remain halted.

P&O Ferries said the redundancy measures were a "last resort" to save the business.

Scottish Transport Minister Jenny Gilruth has spoken to P&O bosses and says the government's relationship with the company is being re-examined.

She told BBC Scotland that any contracts which may involve Scottish government support would to be looked into, as well as the company's actions "across the board".

Ms Gilruth has urged the UK government "to leave no stone unturned" in trying to get the redundancy decision reversed.

She also called for the publication of legal advice received by the UK government which could suggest P&O may have broken the law with regards to the mass sackings.

The transport minister told BBC Scotland that she and First Minister Nicola Sturgeon had spoken to P&O chief executive Peter Hebblethwaite to convey their "utter dismay" about the situation.

She said the way staff had been treated was "deeply disrespectful" and the Scottish government would do all it could to support them with redundancy and welfare issues.

Image source, Getty Images
Image caption,

Protests have been held across the UK since the P&O announcement

Ms Gilruth said: "We will be looking at our relationship with P&O going forward, because the manner in which they have worked with their staff is appalling.

"We as a government need to look closely at how we are able to support staff.

"But we all need to seek clarity from P&O because we don't yet know the number of jobs in Scotland affected - only the total number across the United Kingdom."

UK Transport Minister Grant Shapps questioned whether P&O's actions have been legal.

He has asked the Insolvency Service to look at the laws around notification requirements to see if P&O followed correct and legal processes so the government "can consider if further action is appropriate".

'Reputational damage'

Ms Gilruth said the Scottish government would be urging its UK counterparts stand by the sacked staff.

She said: "Those workers need an assurance that the UK government are doing all that they can to work with P&O to ensure this decision is reversed. We haven't heard that, unfortunately, thus far.

"But the way in which this has been dealt with by the company will ultimately have ramifications for them, in terms of reputational damage going forward."

Passengers have been left stranded with services cancelled since the announcement.

The ferry company said it was aiming to have the first ones "running again in the next day or two as we lose £1m a day for each day they are not moving".

Ms Gilruth said: "This is a deeply concerning time and we understand the strength of people's feelings regarding P&O's actions.

"Staff should not have been treated in this manner. Had they been properly consulted by their employer, we would not be in this situation.

"It's not a modern work practice to treat your staff this way."

P&O Ferries is owned by Dubai-based DP World which also owns ports at London and Southampton.

DP World recently announced £8bn in revenues last year. During the Covid pandemic the company claimed more than £15m in grants and furlough assistance.

Union leaders have branded the company's actions disgraceful, with the RMT describing the mass sackings as "one of the "most shameful acts in the history of British industrial relations".

Dave Moxham, deputy general secretary of the STUC, said: "We are calling on the UK government to publish the advice that they have seen which should make it clearer whether the law has been breached or not.

"Clearly, if it hasn't been breached, then we need to close that loophole immediately. But we are confident that a tribunal, if it were to look at this case, would side with the workers and against P&O."