Nearly a quarter of P&O Ferries' UK staff were told it was their "last working day" via video message on Thursday.
P&O Ferries faces widespread outrage and the prospect of legal action following yesterday's shock to lay off 800 seafarers over a video call† It was a dark day for shipping after clearly illegal HR layoffs. Mark Dickinson, the secretary general of the Nautilus International seafarers' union, was clear “This is a new low for a shipping company to handle due legal process in such a backstabbing and heartless manner."
clearly illegal
The company is required to consult with unions and has collective bargaining agreements for all ships on all routes. As an argument, P&O Ferries argues that it was not a viable business in its current state, as it made a loss of £100 million on an annual basis. Yesterday, politicians on both sides called on the government to act against what Labor and unions called an "outrageous betrayal". Employment lawyers have also warned that P&O may have broken several laws.
"It appears that HR will offer staff improved severance packages to compensate them for their layoffs, but whether that offer will be enough to avoid significant lawsuits remains to be seen."
If employees become redundant, they can file a claim for unfair dismissal with the labor court, with the maximum compensation in most cases reaching up to one year's salary. If their notice period or a statutory severance payment was not paid, these payments could also be claimed. If HR has not conducted appropriate collective bargaining prior to the layoffs, the unions can file a claim about that absence, with a possible award of up to 90 days of gross pay per employee involved if the claim is successful.
Alternatives
In the meantime, retailers are looking at alternative options for the Irish Sea, such as using the ports of Belfast and Warrenpoint in Northern Ireland and Dublin in the Republic of Ireland. With regard to transporting goods to and from mainland Europe, Connolly said retailers are also considering using the Eurotunnel or air freight.