P&O latest: Ministers review contracts after ferry firm sacks 800 workers

The Scottish Government is reviewing all its contracts with P&O Ferries after the operator sacked 800 workers without warning.

Transport Minister Jenny Gilruth has spoken to P&O bosses and says the government’s relationship with the company is being re-examined.

P&O, which last week sacked the staff without consultation, operates the key Scotland-to-Ireland route between Cairnryan and Larne. Sacked workers are to be replaced with cheaper agency crews.

Gilruth told the BBC any contracts that involve Scottish Government support would now be looked into, as well as the company’s actions across the board.

Meanwhile, a maritime union has urged the Transport Secretary to revoke P&O Ferries’ licences in British waters as the operator resumed services on one of its routes.

Nautilus International general secretary Mark Dickinson has written to Grant Shapps encouraging the UK Government to take urgent action. Dickinson called for the Transport Secretary to revoke its licences to operate in British waters, pursue any legal option available, and request the return of taxpayer cash P&O received during the pandemic.

Sailings were halted on Thursday morning after the announcement and P&O Ferries told passengers they would remain suspended “for the next few days”.

However, yesterday, P&O said it had resumed one of its services, between Liverpool and Dublin.

Yesterday the Rail, Maritime and Transport union said about 300 people attended a demonstration near the Conservative Party spring forum in Blackpool.

Conservative Party chairman Oliver Dowden said there was “revulsion” about P&O’s actions. He said the government was trying to establish if it was legal.

Labour says P&O Ferries received £38.3 million in UK Government contracts since 2018.

Meanwhile CalMac has offered to hire staff made redundant by the firm. Managing director Robbie Drummond said: “This is an awful situation for our ferry industry colleagues. We have vacancies available and would encourage anyone affected to apply.”

A spokesman for P&O Ferries said: “We took this difficult decision as a last resort and only after full consideration of all other options but we concluded the business wouldn’t survive without fundamentally changed crewing arrangements, which in turn would inevitably result in redundancies.

“We have offered enhanced severance terms to those affected to compensate them for the lack of warning and consultation.”

He said all affected crew working at the time were notified face-to-face on their vessels. Those absent were called, emailed or texted.