P&O Ferries is a British shipping company that operates ferries from United Kingdom to Northern Ireland, and to Continental Europe (France, Belgium and the Netherlands). The company was created in 2002 through mergers and acquisitions within P&O. It has been owned by Dubai-based DP World since 2019.
On 17 March 2022, P&O abruptly suspended its operations, cancelling all sailings and offloading passengers and cargo. Eight hundred UK staff were told in a video call that their employment was "terminated with immediate effect due to redundancy", and that their work would in future be undertaken by staff contracted to a third-party supplier. Staff on some ferries refused to leave their vessels. A spokesman for the National Union of Rail, Maritime and Transport Workers said that there had been no consultation with the staff or trade unions.[10] The chair of the Transport Select Committee, Huw Merriman MP, criticised P&O.[11] In the light of this action by P&O Ferries, the UK government stated it would review its contracts with the company.[12] This resulted in calls to boycott P&O Ferries including by members of the public, businesses in the travel trade and politicians.[13]
The method of the expulsion, overseen by ex-military security guards, was criticised by several government and business leaders. Mark Russell, a non-executive director of DP World, resigned afterwards in disagreement with the way in which the restructuring was carried out. P&O Ferries had seen losses during the COVID-19 pandemic as well as deficits in its pension fund. Industry sources also cited its high overheads and competition from Irish Ferries as potential contributory factors. Verity Slater, partner and expert in maritime employment law at Stephens Scown, said that P&O may not have to follow UK employment laws, since some of its ships are not registered in Britain.[14]
On 24 March 2022, P&O Ferries CEO Peter Hebblethwaite confirmed before the Transport Select Committee of MPs that the management of the company acted unlawfully when it fired the crew members without consultation.[15] Grant Shapps said that P&O Ferries should change the names of MS Spirit of Britain, MS Pride of Hull, MS Pride of Kent and MS Pride of Canterbury to remove all British references, were it found that P&O had broken the law.[16][17] Shapps confirmed that the ships concerned would only be able to operate following full training and subsequent inspection by the Maritime and Coastguard Agency.[18]
In March 2022, Shapps wrote to Hebblethwaite to give him "one final opportunity" to reinstate the 800 workers.[19] Hebblethwaite declined to do so and confirmed his intention to remain in the CEO post despite two of the company's ships being impounded on safety grounds.[20]
The controversy also caused P&O Cruises, another company originally owned by P&O but which was divested in 2000 and acquired by Carnival Corporation & plc in 2003,[21][22] to suffer public backlash and to embark on an advertising campaign to clarify their separate ownership from P&O Ferries.[23]
On 25 April 2022, it was reported that P&O Ferries was forced to reverse its attempt at pay cuts for the new workers. National Union of Rail, Maritime and Transport Workers, also known as RMT Union, received reports of seafarers being asked to sign new contracts with reduced payment. The union reported the company to the Maritime and Coastguard Agency, which made sure that the wages were not reduced.[24]
