On March 17th 2022, P&O Ferries suspended their operations after firing almost 800 members of staff, a decision that provoked outrage across the UK, both from other business leaders and MPs.
Two months after the incident, though, P&O is yet to face any consequences for their decision. So, exactly how controversial was the company’s decision? And could it have wider ramifications for businesses as a whole?
What exactly happened?
On the 17th March, all 786 members of P&O’s Jersey-contracted crew were fired and replaced with cheaper agency workers. By accepting the redundancy, employees received a payout that exceeded what they may have received had they taken P&O to an employment tribunal.
The decision to fire staff was part of a larger strategy to cut costs, with P&O Ferries boss Peter Hebblethwaite suggesting that reversing the redundancies would result in the company collapsing, at the cost of 2,200 jobs.
A week after the mass sackings, Peter Hebblethwaite admitted to MPs that the company had broken the law. Specifically, the law required P&O to consult with trade unions before firing workers, which they didn’t do.
What are the lessons for businesses?
As a small business owner, you might think that the P&O Ferries debacle will have little impact on your own operations. However, there are lessons to be learned from the situation, even if you’re not operating on the same scale or in the same industry as P&O.
There’s a reason the law is the law
Arguably the most shocking part of the P&O Ferries story is that the company knowingly broke employment law, and did not see an issue with that. For the company, it was cheaper to pursue illegal redundancies and pay a potential fine than carry on with their operations. However, the subsequent cost to the company’s reputation because of their decision has been catastrophic.
So remember: there’s always a reason that the law is the law, and any knowing or unknowing attempts to get around it will result in both employees and customers thinking badly of your company.
Honesty is the best policy
For P&O Ferries employees, it wasn’t just the redundancies that hurt, but the decision to reveal the news in a three-minute Zoom call with little to no warning. When it comes to the sensitive decision to let go of employees, it’s always better to be honest.
Legally, in the case of a large redundancy process, the collective consultation process must begin at least 45 days before dismissals. In any case, though, it pays to give employees time and space to understand the decision and voice their concerns.
Seek professional legal advice
If you are considering making redundancies, it’s best to seek professional advice. This way, you can choose the right route for both your company and your employees, and hopefully, avoid any painful hits to your reputation along the way.
