London Daily

Focus on the big picture.
Thursday, Sep 10, 2026

P&O Ferries sackings: Government to review contracts with ferry firm

P&O Ferries sackings: Government to review contracts with ferry firm

All P&O Ferries contracts across government will be reviewed in response to the way it sacked 800 workers.

Staff have been protesting after many were told without warning by video message on Thursday that it would be "their final day of employment".

In a letter to the company, Transport Secretary Grant Shapps said he was "deeply concerned" at the move and questioned whether it was legal.

P&O said it was a "last resort" to save the business.

Passengers have been left stranded with services cancelled since the announcement. The ferry company said it was aiming to have the first ones "running again in the next day or two as we lose £1m a day for each day they are not moving".

A Department for Transport spokesperson could not provide details on the current value of government contracts awarded to P&O Ferries, but Labour Party analysis of the public sector contracts database Trussle found the company had received £38.3m in taxpayer-funded contracts since December 2018.

One government contract for freight between Tilbury and Zeebrugge for nine months was worth £10.9m.

Mr Shapps urged the company to pause the redundancies announced and instructed the Maritime and Coastguard Agency to inspect all vessels to make sure replacement crews "rushed through" were safe to go to sea.

He has also asked the Insolvency Service to look at the laws around notification requirements to see if P&O followed correct and legal processes so the government "can consider if further action is appropriate."

Protests have been staged in Dover, Liverpool, Hull and elsewhere in the UK against the P&O redundancies, while the vessels stay docked at ports and ferry cancellations cause travel disruption.

Business Secretary Kwasi Kwarteng has also written to the ferry operator's chief executive demanding answers to P&O Ferries' handling of the redundancies.

Mr Kwarteng's letter to its boss Peter Hebblethwaite says the company "appears to have failed" to follow the correct process for making large-scale redundancies, which would include consulting with unions and staff representatives and notifying him through the Insolvency Service and the Redundancy Payment Service.

The letter says failure to notify is "a criminal offence and can lead to an unlimited fine".

Mr Kwarteng's questions to P&O Ferries include asking for details on the exact number of redundancies and how many of these involved any consultation, as well as the location of work for each staff member dismissed.

Additionally, he asked if staff made redundant were offered alternative roles directly for P&O Ferries or similar roles on new terms and conditions through an agency.

Workers have spoken of their "utter dismay" after hearing the news and of feeling abandoned by the company.

Andrew Smith, who had worked for the company for 22 years, said: "It's our lives. It's how our families have grown up, knowing that this is what we do, and it's just been turned on its head within a matter of hours."

And James, who has worked for P&O Ferries in Dover for about four years, said all he received "was a three minute pre-recorded message saying we are out of a job. Nothing else."

"It was a complete surprise. I would have understood if it was at the height of Covid, but now we're seeing the end of travel restrictions and the start of summer bookings. So this has come completely out of the blue," he said.

The business secretary also raises the company's previous application for government support when Covid lockdowns disrupted travel.

"It is particularly depressing that this should happen given the millions of pounds of British taxpayer support P&O companies received from the furlough scheme," he wrote.

P&O Ferries is owned by Dubai-based DP World which also owns ports at London and Southampton.

DP World recently announced £8bn in revenues last year. During the Covid pandemic the company claimed more than £15m in grants and furlough assistance.

In a new statement on Friday, P&O Ferries said: "We took this difficult decision as a last resort and only after full consideration of all other options but, ultimately, we concluded that the business wouldn't survive without fundamentally changed crewing arrangements, which in turn would inevitably result in redundancies."

The RMT union labelled the move one of the "most shameful acts in the history of British industrial relations".

Its national secretary Darren Procter told a crowd of about 250 demonstrators in Dover: "We're going to make sure our workers get back on board their vessels."


Watch: Dover MP Natalie Elphicke heckled by angry P&O Ferries protesters

Sacked P&O employee Andrew Smith said he felt "utter dismay" at losing his job after 22 years


Newsletter

Related Articles

0:00
0:00
Close
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
UK Airports Face Continuing Disruption After National Air Traffic Control Failure
UK Bans Imports From Israeli Settlements and Expands Sanctions on Iran
British Chambers of Commerce Forecasts UK Growth of 1% as Investment Remains Weak
UK Suspends Local Government Reorganisation Decisions and Cancels Planned Shadow Authority Polls
UK Parliament Opens Inquiry Into Gaps in Climate Change Preparedness
Andy Burnham and Xi Jinping Hold Talks on Trade, Security and British Consular Cases
UK Joins France, Canada and Other Nations in Measures Against Israeli West Bank Settlements
UK Announces New Sanctions Targeting Iranian Nuclear and Military Networks
British Chambers of Commerce Calls for Business Rate Reform and Productivity Support
UK Farmers Warn Dry Summer Could Reduce Crop Yields and Push Up Food Prices
UK Rail Networks Hit by Widespread Delays After Major Signalling Failures
Matt Clifford Resigns as ARIA Chair After Conflict-of-Interest Scrutiny
UK and France Say Joint Border Operations Have Prevented More Than 48,000 Irregular Channel Crossings
UK Core Inflation Remains Above Expectations as Utility and Commodity Costs Stay Elevated
Jaguar Land Rover Considers Up to 4,000 UK Job Cuts Amid Automotive Industry Pressure
UK Government Pauses Local Authority Reorganisation for Legal Review
UK Public Borrowing Reaches £1.8 Billion in July, Adding Pressure Before Autumn Budget
Chancellor John Healey Puts Regional Devolution and Fiscal Discipline at Heart of UK Growth Plan
Counter-Terrorism Police Lead Salford Investigation After Two Teenagers Charged
UK Rejects Financial Reparations for Transatlantic Slavery
UK and Egypt Step Up Diplomacy Over Escalating West Bank Tensions
UK Pauses Council Reorganisation Across Four English Counties
Jaguar Land Rover Plans 4,000 Job Cuts in Major UK Restructuring
UK Unveils Planning and Regulatory Overhaul to Speed Infrastructure and Economic Growth
×