Coronavirus: P&O Ferries announce up to 1,100 redundancies

P&O Ferries will make up to 1,100 workers redundant as part of Dubai owner’s bid to make business ‘viable and sustainable’ in wake of Covid crisis

  • P&O Ferries is set to make 1,100 workers redundant amid the coronavirus crisis 
  • Firm said it had been ‘working with stakeholders to address the loss of business’
  • Added it is clear ‘right-sizing the business’ is necessary for it to survive Covid-19 
  • Here’s how to help people impacted by Covid-19

Around 1,100 workers at P&O Ferries are to be made redundant as part of a plan to make the business ‘viable and sustainable’, the company said.

The ferry business makes most of its money from its cross-channel services, which have seen a collapse in passenger numbers since the unprecedented lockdown in Britain and Europe. 

In a statement released today, the firm said it had been ‘working with stakeholders to address the impact of the loss of passenger business’ since the start of the coronavirus crisis.

It added it has now become clear that ‘right-sizing the business’ is necessary to create a ‘viable and sustainable P&O Ferries to get through Covid-19.’ 

The proposal involves more than a quarter of the workforce losing their jobs.    

Around 1,100 workers at P&O Ferries are to be made redundant as part of a plan to make the business ‘viable and sustainable’, the company said

A spokesman for P&O Ferries, which is owned by Dubai-based DP World, said: ‘Since the beginning of the crisis, P&O Ferries has been working with its stakeholders to address the impact of the loss of the passenger business.

‘It is now clear that right-sizing the business is necessary to create a viable and sustainable P&O Ferries to get through Covid-19.

‘Regrettably, therefore, due to the reduced number of vessels we are operating and the ongoing downturn in business, we are beginning consultation proceedings with a proposal to make around 1,100 of our colleagues redundant.’ 

P&O transports 15 per cent of all goods in and out of the UK, but a number of ships have been taken out of service as the company fights for survival. 

The ferry business had furloughed 1,100 staff on the popular Dover-Calais route at the end of March, as it suspended its passenger business to focus on freight to and from the UK.

Janette Bell, Chief Executive Officer of P&O Ferries, said at the time: ‘Due to the outbreak of COVID-19, we are all grappling with an issue of enormous scale and human impact. 

‘P&O Ferries is having to respond with new measures to keep the business operational and to keep freight moving, which is vital to the economies of the United Kingdom, France, Ireland and the wider EU. 

In a statement released today, the firm said it had been 'working with stakeholders to address the impact of the loss of passenger business' since the start of the coronavirus crisis

In a statement released today, the firm said it had been ‘working with stakeholders to address the impact of the loss of passenger business’ since the start of the coronavirus crisis 

‘With respect to the United Kingdom, we bring in about 15 per cent of all the goods that the country currently urgently needs. The biggest part of which [33 per cent] is food, including fresh fruit and vegetables from southern Europe and North Africa, as well as vital medicines and medical equipment. 

‘P&O Ferries is also handling important but hazardous goods such as detergents and cleaning products. Ordinarily, for P&O Ferries to provide the service required for the transport of freight, there needs to be a mix of passengers and cargo on the ships. 

‘However, due to the outbreak of Covid-19, there are now very few passengers travelling and we cannot sustain these normal operations. Consequently, P&O Ferries will be suspending its passenger business and we will be focusing all of our efforts on maintaining the flow of freight to Britain. 

‘This means that 1100 of our hard-working and dedicated staff in the passenger services part of our business will be furloughed onto the Government’s pay scheme.’       

In April, it was reported the business’ Dubai-based owners, DP World, were trying to agree a £250million bailout package including cuts to pay and pensions for thousands of staff totalling £100million.

They had also pursued a £150million bailout from the British Government, according to the Telegraph, but ministers were said to not be convinced, leaving the business in danger of collapse.      

Read more at DailyMail.co.uk