British shipping giant P&O Ferries has made headlines and enraged labour unions by making 800 staff members redundant via a pre-recorded Zoom message. P&O, owned by multi-billion-pound Dubai-based DP World, made the decision to summon staff to onboard-ship meetings where they were informed that they were being laid off with immediate effect.
P&O cited its substantial GBP £100 million loss as being the main reason for the staff cull despite recently paying GBP £270 million to shareholders whilst its parent group saw its revenues jump to 8.1 billion pounds last year. P&O was also the recipient of a £10 million cash handout given by the British Government to help sustain the business through the worst of the COVID crisis.
The move has angered staff, unions and politicians including British Prime Minister, Boris Johnson, with the latter condemning P&O's decision. Politicians are now calling on the company to pay back its furlough money. Workers also refused to disembark the ships following their dismissal though several days prior, P&O enlisted handcuff-trained security professionals and ordered them to physically remove staff members from its ships if they refused to leave.
P&O plans to replace many of the terminated employees with cheaper agency workers which has also stoked the fire. With workers reported to have been escorted off their ships while being told that cheaper alternatives will take their place, unions are threatening to pursue legal action and strike actions are being organised to take place on 18 March across major port cities including Dover, Liverpool and Hull.
“Though the approach is not unheard of, it is exceptional that they chose to forego an appropriate notice and consultation process,” said Nathan Donaldson, employment solicitor at Keystone Law. Others pointed to the damage to P&Os reputation that is sure to ensue given that the fundamentals of employee relations were seemingly ignored.
When handling terminations, especially mass ones, it is best to handle them with sensitivity and with the utmost respect of the employees. It is fundamental that they are not seen as workers but as people whose very lives are about to be upended. A culture of consistent clear communication should also ensure that employees are not taken by surprise. Though business factors may justify terminating an employee, approaching the termination with kindness, privacy and respect are equally important factors that business leaders need to remember.
Paul Arkwright
Publisher
