LONDON—P&O Ferries, one of the largest ferry operators serving the United Kingdom, has fired 800 crew members with “immediate” effect, saying the company’s survival depended on “swift and significant changes.’’
Thursday’s announcement came shortly after the company directed passengers to other ferry operators because many of its services would be suspended for “the next few days.” P&O, a unit of Dubai-government owned logistics giant DP World, operates ferries between the U.K. and France, Ireland, and the Netherlands.
“In its current state, P&O Ferries is not a viable business,’’ the company said in a statement. “We have made a 100 million pound loss year on year, which has been covered by our parent, DP World. This is not sustainable. Our survival is dependent on making swift and significant changes now.’’
A union representing P&O crew members said the company’s action was “scandalous” after it received millions of pounds of British government funding during the COVID-19 pandemic. Nautilus International advised its members to stay on board their vessels “until further notice.”
“The news that P&O Ferries is sacking the crew across its entire U.K. fleet is a betrayal of British workers,’’ Nautilus General Secretary Mark Dickinson, whose union represents some 20,000 maritime professionals, said in a statement. “There was no consultation and no notice given by P&O.”
The company said the workers who were fired would receive enhanced compensation packages to make up for the lack of notice.
The government is scheduled to make a statement to the House of Commons on the situation at P&O later Thursday.
Travel companies worldwide saw revenue plummet during the pandemic as governments imposed travel restrictions and people canceled holidays. P&O in May 2020 warned that around 1,100 workers could lose their jobs as part of a plan to make the business “viable and sustainable.″
“In making this tough decision, we are securing the future viability of our business which employs an additional 2,200 people and supports billions in trade in and out of the U.K.,” P&O said. “And we are ensuring that we can continue serving our customers in a way that they have demanded from us for many years.”
Nautilus said the company received more than 4.3 million pounds ($5.6 million) of emergency funding from the government during the pandemic as part of program to subsidize freight operators. It also received government support to pay more than 1,400 workers furloughed during the pandemic, the union said.
Thursday’s announcement “is nothing short of scandalous given that this Dubai-owned company received British taxpayer’s money during the pandemic,’’ Dickinson said.
By Danica Kirka
