P&O jobs talks ‘would have cost £309m’

It decided against a full staff consultation over its plans to cut almost 800 jobs, a move which has attracted a huge backlash from unions and politicians.

A company source said the study calculated it would cost £309 million to keep the business going through a consultation period of at least three months, adding there was no guarantee of recovery.

Months of consultations would have undermined the business, caused disruption which would have led to customers leaving to competitors, dealing a “fatal blow” to P&O, the source told the PA news agency.

P&O believes it has safeguarded the long-term future of the company and the livelihoods of 2,200 employees.

A P&O spokesperson said: “Over 90% of seafarers affected are in discussions to progress with the severance offers.

“We are sorry to the people affected and their families for the impact it’s had on them. They’ve lost their jobs and there is anger and shock, which we completely understand.

“We needed fundamental change to make the business viable. This was an incredibly difficult decision that we wrestled with but once we knew it was the only way to save the business, we had to act.

“All other routes led to the loss of 3,000 jobs and the closure of P&O Ferries.

“In making this hard choice we have guaranteed the future viability of P&O Ferries and secured Britain’s trading capacity.

“We are committed to ensuring the continued and ongoing support for all those former and current employees affected.”

The company said the settlement with its workers is believed to be the largest compensation package in the British Marine Sector.

A total of 40 employees are receiving over £100,000 and in some cases are over £170,000, said P&O.

The total value of the financial settlement is over £36 million.

Pro tests were held in Liverpool, Hull and Dover on Saturday and more are planned in the coming days.

The Rail, Maritime and Transport (RMT) union has planned a protest outside a Glasgow recruitment office which was reportedly involved in hiring staff to replace sacked union members.

RMT general secretary Mick Lynch said the demonstration will take place at the offices of Clyde Marine Recruitment today from 11am.

The union is also planning to blockade the Cairnryan port on April 8.

A number of demonstrations have already taken place at Larne and other ports around the UK amid calls for P&O Ferries’ chief executive Peter Hebblethwaite to resign over the company’s decision to use agency staff on cheaper salaries, including on the Cairnryan-Larne line between Scotland and Northern Ireland.

A ship operated by the ferry firm was detained for being “unfit to sail” at Larne on Friday.

The European Causeway vessel was held due to “failures on crew familiarisation, vessel documentation and crew training”, the Maritime and Coastguard Agency (MCA) said.