The owner of P&O Ferries is facing backlash after the company laid off 800 employees earlier this week. The move has been heavily criticized by the public as well as MPs, and legal action is under consideration
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The move was seen as a “despicable attack on workers’ rights”. by Shadow Transport Secretary Louise Haigh, while Maritime Secretary Robert Couts called the move ‘insensitive’.
He said: “The reports of workers are not reported and escorted off their ships with immediate effect while being told cheaper alternatives would take over, shows the insensitive nature with which P&O approached the issue. ”
Some workers refused to leave the ship in protest at the decision – as the RMT Union directed their workers to stay on board – and P&O hired security personnel to remove them. RMT is currently considering legal action.
MP Zarah Sultana called on the government to intervene in an effort to save jobs, who have let’s make a short Zoom call no advance warning.
So why are workers fired?
Who owns the P&O?
FARES GHAITH / EPA-EFE / REX / Shutterstock)
P&O Ferries is owned by DP World, a logistics company based in Dubai.
The company paid out £270 million in dividends to shareholders in 2020 and said its value was to make “a meaningful difference to the world”.
It bought P&O in 2019, citing the company’s poor record as “unsustainable”.
DP World operates globally and is owned by the UAE government. This means it is under the control of the controversial Vice President and Prime Minister of the UAE, Sheikh Mohammed bin Rashid Al Maktoum.
In 2021, he is ordered to pay his ex-wife a record divorce after Princess Haya suffered a “protracted campaign of intimidation and intimidation”.
Why was the P&O team fired?
P&O has laid off 800 of its employees to replace them with agency employees, claiming the move is necessary for the business to survive.
It said: “We have lost £100m compared to the same period last year, which has been covered by our mother DP World. This is unsustainable. Without these changes there is no correlation. hybrid for P&O Ferries.”
It has also stated that the services will be down for the coming days.
The transit company added: “P&O Ferries services are unavailable for the next few days. We are advising travelers of alternatives. We will update this feed every three hours. once with the operating situation.”
RMT Union is threatening legal action against the company for what it calls a ‘shameful act’.
How long has the ferry company struggled?
P&O has been in trouble every year and reports it has lost £100m a year, with the loss covered by owner DP World.
It requires £10 million in cash from the UK government in the same year DP World paid out £270 million in dividends to its owners.
Due to the backlash and heavily depleted workforce, the next few days will be tough for the company.
It said: “Unfortunately, P&O Ferries services may not be available for the next few hours. Our Port Team will guide you and travel will be arranged through an alternative operator.”
It told the remaining employees that the company would not proceed with the liquidation after concerns were raised when company employees were asked to assemble.
“P&O ferries will not be liquidated. We have requested all vessels to accompany us in preparation for the company’s announcement. Until then, P&O’s services will not be operational and we are contemplating advise travelers of alternatives,” it told the crew.
https://www.mirror.co.uk/money/po-owners-dp-world-criticised-26500170 P&O owner DP World criticized after 'despicable' mass layoffs