P&O Ferries redundancies could have been stopped by Employment and Trade Union Rights (Dismissal and Re-engagement) Bill
19:43, 18 March 2022
updated: 19:45, 18 March 2022
It is rare to see a political consensus on industrial relations but P&O Ferries has succeeded in bringing all parties together in opposition to its brutally executed sacking of 800 employees.
As an object lesson in how not to make mass redundancies in a sympathetic way, it is hard to think of a better example.
With one press of the unmute button, hundreds of staff were told via a zoom message from an anonymous executive figure they were no longer required and it was their last working day; owners of the ferry line said it was no longer viable and just in case anyone was tempted to disagree, deployed their own security guards to keep an eye on things.
A modern-day parable of our time: sacking by social media without any contrition or consultation, a strategy straight out of the Putin playbook.
MPs across all parties were in agreement that the company had acted disgracefully, had been callous, insensitive - the Dover MP Natalie Elphicke was scornful, saying: “This is shabby corporate behaviour by Dubai’s DP World and an insult to the decades of loyalty and hard work by Dover’s workforce.”
The Dubai-based parent company argued the business was unsustainable and was racking up losses of £100m a year but at the time it acquired it in 2019, the future looked optimistic.
The company, which is owned by the Government of the United Arab Emirates, announced the acquisition with an upbeat message, saying: "Overall the transaction offers compelling value strategically and financially, and we look forward to P&O Ferries contributing to driving shareholder value in the coming years.”
MP Natalie Elphicke was heckled by protesters today
In 2020, shareholders received a £240m dividend while P&O saw an 11% jump in revenue last year.
But it paid a heavy price during the Covid-19 pandemic as revenue plummeted. The company furloughed some 1,400 employees, receiving £10m from the government - money now some want repaid.
There are some key questions, one of which is whether there is anything meaningful that can be done to overt mass job losses. Unions insist they may be unlawful but there are doubts: if employees accept the severance pay they are offered, then that is considered in employment law to be an acceptance of redundancy.
As to the practice of firing then re-hiring staff, the government could legislate to stop it.
Indeed, a proposal to do precisely that was on the table in 2021.
Labour had put forward the plan in a Bill tabled by Barry Gardiner, whose Employment and Trade Union Rights (Dismissal and Re-engagement) Bill would have made it easier to fight the tactic at a tribunal.
What happened? The Bill was stopped by filibustering by Conservative MPs.
Now we see government ministers lining up to denounce the company which looks like it won’t recant and will be pressing to ‘fire and rehire’ in a cavalier fashion which sails pretty close to the wind.
Also, remember when Boris Johnson was facing a threat to dump him as PM? Seems a long time ago and it seems he may evade a no confidence motion from his backbenchers.
At least one disgruntled MP has withdrawn his letter. No news yet from the single Kent MP who was first to send in his letter.
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