WATCH: Sacked P&O staff were contracted through Jersey

Friday 18 March 2022

Fury over P&O Ferries’ shock decision to sack 800 staff and replace them with cheaper agency workers could lead to a legal battle in Jersey.

Yesterday, the travel company suspended sailings as it announced to crew onboard its vessels via a pre-recorded Microsoft Teams video that they were being made redundant “with immediate effect".

Handcuff-trained officers employed by a security company normally used by the Home Office to handle Channel-crossing migrants then boarded ferries to forcibly remove affected employees.

Reacting to what was termed a “wholly unacceptable” decision by parliamentary under-secretary for transport Robert Courts, the Rail, Maritime and Transport Union (RMT) said it was seeking “urgent legal action”.

WATCH: The moment @POferriesupdate informed their staff that their employment would be terminated with immediate effect.

❌ No consultation with Unions ❌#PandOBetrayal #SackedandAttacked pic.twitter.com/wPBygOp4Qy

— Nautilus International (@nautilusint) March 17, 2022

General Secretary Mick Lynch said RMT was “calling for the Government to take action to stop what is fast turning into one of the most shameful acts in the history of British industrial relations.”

Nautilus’ Executive Officer Martyn Gray said the maritime union was “exploring whether P&O Ferries has acted illegally by laying off crew with immediate effect.”

It has now emerged that the sacked seafarers were employed via Jersey – meaning that, if it is to go ahead, some of that legal action could take place in the island.

@POferries sackings – @RMTunion reports that security guards with handcuffs are boarding ships to remove crew as union calls for mass mobilisation against the companyhttps://t.co/WmRZwSat4O pic.twitter.com/jyJToSLUe2

— RMT (@RMTunion) March 17, 2022

A letter from P&O CEO Peter Habblethwaite to staff, which was published in full by the Mirror last night, confirmed that all 800 staff were “Jersey-contracted”. This means that UK employment law may not apply.

Express has so far identified five P&O companies based in Jersey through the JFSC companies register: P&O Ferries (Jersey) Limited, P&O European Ferries (Jersey) Limited, P&O Irish Sea (Jersey) Limited, P&O North Sea (Jersey) Limited, and P&O Ship Management (Jersey) Limited. 

All were registered on 1 April 2010 and their registered office is a postbox on the first floor of Kensington Chambers, 46-50 Kensington Place. 

Pictured: P&O companies registered in Jersey.

It was through Jersey-registered P&O Ferries, P&O North Sea and P&O Irish Sea that seafarers’ union Nautilus negotiated a new pay deal for employees in December 2021.

It has been reported today that unions are arguing the crews were easier to sack because their contracts were based in Jersey.

In his letter to staff, Mr Hebblethwaite described the mass sacking decision as “difficult but necessary”, noting: “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.”

He said there would be “no future” for P&O if the changes to “reduce our crewing costs by 50%” with the help of an agency called International Ferry Management. 

The first warning passengers and workers had that something may be wrong was a 07:27 Twitter posting by P&O on Thursday, which read: “Regretfully, P&O Ferries services are unable to run for the next few hours.”

Employees were then told to expect a "major company announcement" regarding the "long-term viability" of the company, which required that all passengers and cargo firstly be discharged. They were warned that there would likely be "serious disruption" as a result.

Regretfully, P&O Ferries services are unable to run for the next few hours. Our Port Teams will guide you and travel will be arranged via an alternative operator.

We apologise for the inconvenience this will have on your journey plans.

— P&O Ferries (@POferries) March 17, 2022

Mr Hebblethwaite said P&O staff would be compensated for the lack of notice with “enhanced severance packages.”

Employment law experts have speculated over whether the lack of notice to employees over the mass redundancies could leave P&O open to legal challenge. 

Nautilius, meanwhile, urged the Maritime and Coastguard Agency to investigate the safety of allowing agency crew with no familiarity of P&O’s routes – which includes the busiest shipping lane in the world, Dover-Calais – or vessels to take control of the fleet. It is questioning whether maritime safety laws can be met. 

Business Secretary Kwasi Kwarteng this afternoon wrote to P&O Ferries to warn that the UK Government was closely examining whether the company had followed rules around mass redundancies. 

This was reiterated in a separate letter from a "deeply concerned" Transport Secretary Grant Shapps, who added that he had ordered the Maritime and Coastguard Agency to carry out an inspection of all P&O vessels and operating arrangements prior to going back into service "to ensure that the new crews you have rushed through are sufficiently safe to go to sea."

P&O Ferries has lost the trust of the British public and has given business a bad name.

The Government wants answers.

My letter to the Chairman of P&O Ferries today ???????? pic.twitter.com/hgMPLOe9vA

— Kwasi Kwarteng (@KwasiKwarteng) March 18, 2022

Dubai-based logistics giant DP World bought P&O in 2019 for £322m.

DP World is itself owned by Dubai World, whose shareholder is the Government of Dubai, and it is controlled by Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai.

P&O took £10m in furlough cash from the UK Government during the pandemic. This morning, Labour MPs argued that the money should be given back.

Demonstrations are being held in Hull, Liverpool and Dover today against P&O’s decision.

Workers from across the movement standing with sacked @RMTunion and @nautilusint members at P&O ferries

???? reinstate sacked workers now
???? ban fire and rehire
???? don’t let P&O get away with it pic.twitter.com/LOi8Ulrfu1

— Trades Union Congress (@The_TUC) March 18, 2022

Amid criticism of P&O's mass redundancy announcement, there have also been calls for the end of offshore employment arrangements.

Leader of Northern Ireland’s Traditional Unionist Voice Party, Jim Allister, who said in a statement this afternoon: “It appears P&O sought to circumvent our employment laws by having their employee contracts rooted in Jersey.

“Going forward, this loophole must be closed by effective legislation. Never again must employees be the victims of such brutal treatment and exploitation.”

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Pictured top: A P&O ferry arriving at Calais and Andy Goode (inset), P&O's Head of Internal Relations and Employer Relations, delivering the bad news to employees via a pre-recorded Microsoft Teams clip.