P&O tells 800 staff it axed to keep quiet as it defends cutting crewing costs by 50%

The chief executive of P&O Ferries Peter Hebblethwaite told staff in a letter that without the changes which will cut crewing costs by 50%, there was "no future" for P&O Ferries.

His letter also tells workers to "please refrain from any public comment and direct any external enquiries to our press office.

He says:" It is also essential that we avoid posting any comments or views on social media."

P&O Ferries staff are staging protests after the firm sacked 800 staff without giving them any notice.

The RMT and Nautilus unions are calling for action across the ports of Dover, Liverpool, Hull and Larne.

Nearly a quarter of P&O Ferries' staff were told via a video message on Thursday that it was their "final day of employment".

P&O received more than £15 million in public subsidies in a year to support jobs and services during the pandemic and there are calls for them to be refunded.

The ferry firm has suspended services for between seven and 10 days on the key Scotland to Northern Ireland route –Cairnryan to Larne – as well as Dover to Calais, Dublin to Liverpool and Hull to Rotterdam.

Seafarers union Nautilus International say they and the RMT union are “actively progressing” their legal response to the “clearly illegal” move.

The ferry company has begun a partnership with crewing agency International Ferry Management (IFM) who will now be responsible for providing new staff for all those ships affected by this change.

P&O told staff: "This new crew model will reduce our crewing costs by 50% and enable us to better compete and be more responsive to our customers’ needs. It is a model that is proven to work across the industry, while still allowing us to retain service and safety levels which are central to our operations.

"As well as protecting our future, and jobs across the business we are also guaranteeing our customers a resilient, sustainable and competitive business and securing a quality service to the major trade routes of the UK.

"We already have the strong fundamentals in place - the best ships, on the best routes, under the best brand. Several weeks ago we took the first step in transforming ourselves by restructuring our business so we’re set up for growth. The second, and most difficult, step is the one we’re making today – which will make us the most competitive business operator in the industry.

"By taking these steps we’re bringing together our years of heritage with the forward thinking of our partner DP World, so that we can unlock the potential of our business for now and the long term."

Unions have hit out against the dismissal, saying it marked a "dark day" in the shipping industry and are calling for a boycott of P&O Ferries by the public, and businesses, until their is a reinstatement.

First Minister Nicola Sturgeon said she had spoken with its chief executive and had “made clear my utter disgust at this appalling treatment of its workers”.

The P&O letter to staff began by "thanking you for all you’ve done so far today in handling disruption to our customers, and all I know you’ll continue to do in the coming days. I know it’ll be a challenging few days and your efforts are really appreciated by me and all the leadership team".

It goes on: "As you know, here at P&O Ferries, we play a critical role in keeping trade flowing, supply chains moving, and connecting families and friends across the North and Irish seas and the Channel.

The Channel is a major supply route that delivers 59% of all UK trade with the European Union, with 33% of that trade passing through the port of Dover alone. Alongside these freight movements, 35 million tourists also cross the Channel every year.

"These supply routes require both the sea operations and the Channel Tunnel to balance competition, value and service for freight and tourism customers.

"We have been at the heart of this service for years and our shareholder and leadership team are committed to serving these routes.

"These changes that we’re talking about today are part of DP World’s wider plan to support P&O Ferries to deliver the best for customers across freight and tourism industries. DP World is helping us invest in our future with new ships that will provide a better service for everyone, totalling £250M.

"However 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.

"Our survival is dependent on making swift and significant changes now to protect the future of P&O Ferries, and jobs across the whole business. These circumstances have resulted in a very difficult but necessary and pivotal decision, which was only taken after seriously considering all the available options.

"Without the changes we’re making today to our crewing model there is no future for P&O Ferries."