Labour urges action against P&O after “despicable assault on workers’ rights”

P&O Ferries sacked 800 workers yesterday, with immediate effect, over a Zoom call. Those staff, which the company has said are redundant, are to be replaced by agency workers. The company blamed the move on £100m of losses incurred during the pandemic, but a quick look at the circumstances pre-empting the decision do not exactly scream financial difficulty. Its parent company, Dubai-based DP World, paid shareholders a £240m dividend at the end of 2020 and P&O reported an 11% jump in revenue last year. The 2022 European Golf Tour was renamed the DP World tour with the company contributing £147m to the prize money. What’s more, P&O furloughed more than 1,400 employees during the pandemic – to the tune of £10m. So, after taxpayers subsidised the business to keep it alive, P&O has now axed the jobs of 800 people in the face of the deepest cost-of-living crisis in generations.

The news sparked outrage from politicians and unions. “It just makes my blood boil. It is a complete betrayal of the workforce. It’s just disgusting,” Keir Starmer said. “They mustn’t be allowed to get away with it. I just wish the government had done what we said and strengthened employment rights so they couldn’t do this kind of thing.” Transport union RMT described the mass sacking as an “appalling situation” and a “vicious example of despotic employer behaviour”, calling for demonstrations in Dover, Liverpool and Hull. Armed forces minister James Heappey said this morning that the decision was “disgraceful” – but protested (lamely) that the government “cannot force an employer to continue to employ people”.

Labour is today calling on the government to take action after the “despicable assault on workers’ rights”, arguing that “British seafarers do not need meaningless platitudes”. The party is urging ministers to consider suspending licences and contracts held with DP World “until the matter is resolved” and for the removal of the company from the UK government’s transport advisory group. It is also demanding that ministers “claw back” taxpayer money handed over during the pandemic and for the government to outlaw fire and rehire.

LabourList has exclusive polling for readers to peruse today. Research has found that 55% of people back a windfall tax on oil and gas companies. Just 9% oppose the idea. Labour has been demanding that the government levy a windfall tax instead of the controversial “buy now, pay later” fix put forward by Rishi Sunak. The Savanta Comres poll also shows high support across the political spectrum for a windfall tax – with backing from 62% of 2019 Conservative, 70% of Lib Dem, 85% of Brexit and 59% of Labour voters. In the face of the energy crisis and rapidly spiralling household bills, it seems a tax on companies that have recently made bumper profits is fast becoming the common-sense solution. Sign up to LabourList’s morning email for everything Labour, every weekday morning.