p&o cruises job losses

Protests outside P&O parent company offices as hundreds laid off in job cuts through Zoom video message

Trade unions have protested at British ferry ports on Friday after Dubai-owned P&O Ferries abruptly sacked 800 workers via a video message, drawing widespread condemnation and raising the prospect of disruption to key tourist and goods routes.

Key points:

• Protesters showed up outside parent company DP World's offices
• The company says it has lost more than $176 million since the pandemic began 
• An estimated 800 jobs were terminated over video message 

P&O, which is owned by Dubai ports firm DP World, is recovering from a difficult two years when COVID-19 prevented tourists from travelling on its routes between Britain, France, Ireland and elsewhere in northern Europe.

P&O said it had lost $176 million in the last year and that without changes its business was not sustainable.

Staff were reportedly told its ships would instead be crewed by a third-party contractor to cut costs.

Protesters gather in Dover

In Dover, Britain's busiest ferry port, about 150 protesters gathered and truck drivers honked their horns in support but services operated by other carriers were not visibly disrupted. Demonstrations also took place in the English ports of Liverpool and Hull, and the Northern Irish port of Larne.

"Yesterday's events should also mark a sea change in how we treat workers in this country," said Mick Lynch, general secretary of the RMT Union.

The overarching Trade Union Congress called for workers' rights to be strengthened, including via a new law to end the so-called 'fire and rehire' practice which some firms have used to re-employ workers at lower wages to cut post-pandemic costs.

Transport Minister Grant Shapps said he was shocked and dismayed by P&O's actions: "Sacked via a pre-recorded Zoom video with just 30 minutes' notice — no way to treat employees in the 21st century."

Prime Minister Boris Johnson's office said the government was looking at whether the sackings were lawful before deciding on any further steps.

DP World did not immediately respond to a request for comment.

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P&O Ferries: New legislation could lead to company shut down with loss of 2,000 jobs

‘we will be taking steps to protect all mariners who are working in uk waters and ensure that they are paid the living wage,’ says boris johnson, article bookmarked.

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New legislation to be brought in by the government this week could lead to the shutdown of P&O Ferries and affect international links operated by other firms.

P&O made 800 seafarers redundant on 17 March , intending to replace them with cheaper agency staff. The company has repeatedly said the decision – which contravened rules on consultation about job cuts – was the only alternative to closure.

The transport secretary, Grant Shapps , is expected today to tell P&O Ferries’ chief executive, Peter Hebblethwaite, to re-hire the sacked staff.

Last week Mr Shapps said: “We are going to make sure P&O have to U-turn on this.”

But the ferry firm boss has repeatedly said that the firm has lost £100m in a year – a rate of £3 per second – and that it will close unless it can reduce its cost base.

Mr Hebblethwaite told MPs last week: “We weren’t viable before, and I know that if we hadn’t made radical changes, the business would have closed.

“That would not have been 800 redundancies with substantial severance packages, that would have been 3,000 people losing their jobs.”

He said that the average wage of agency staff is £5.50 per hour. The rate is 42 per cent less than the national minimum hourly wage of £9.50, which takes effect on 1 April.

Currently P&O Ferries, whose parent company is DP World of Dubai, is losing £1m per day. No ships are sailing on the key routes between Dover and Calais and between Cairnryan and Larne. On the latter link, one of two P&O ships has been detained in the port of Larne due to safety concerns.

P&O Ferries is expected to resume sailings between the Scottish and Northern Irish ports imminently, as well as on the Hull-Rotterdam link. It is already operating between Liverpool and Dublin – a route crewed by lower-cost agency staff.

Any closure would lead to more than 2,000 additional job losses and a sharp cut in capacity for passengers and freight ahead of Easter.

Ministers will bring in legislation this week to make ferry firms serving UK ports pay at least the national minimum wage to seafarers.

This would force Irish Ferries – whose crew are employed on agency contracts – to increase its pay on ships connecting Dover with Calais – as well as two links to Ireland, Holyhead-Dublin and Pembroke with Rosslare.

Low-cost competition from Irish Ferries was raised as a concern with Mr Shapps by the chief executive of DP World at a meeting in Dubai last November.

Many other shipping firms, including cruise lines, will be compelled to pay crew at least £9.50 per hour while they are in British waters and ports.

On 23 March the Prime Minister told Parliament: “We will be taking steps to protect all mariners who are working in UK waters and ensure that they are paid the living wage.”

This will particularly affect firms such as Southampton-based P&O Cruises , which is unconnected with the ferry company.

The standard business model in the cruise industry is to employ agency staff at below minimum wage rates in many countries.

The Independent has asked the Department for Transport what arrangements the government would make to help the 2,000-plus existing staff of P&O Ferries if the firm were to close, as well as for passengers and freight on the affected routes.

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P&O Ferries makes 800 staff redundant and warns of 'significant disruption' to services 'over next few days'

Crew on all ships have been asked to discharge their passengers and cargo and "standby for further instructions", but one union has told its members to stay on board.

Digital investigations reporter @megbaynes

Friday 18 March 2022 04:20, UK

P&O Ferries has made 800 of its staff redundant, effective immediately, and cancelled all its services for the next few days.

The move - to plug a £100m year-on-year black hole in the company's finances - is believed to affect everyone from captains to check-in staff, to engine room staff, loaders and cleaners.

Unions have called for mobilisation and branded the redundancies "a knife right through the heart of UK maritime".

Read more: Staff urged by union to protest against 'vicious' move to sack 800 workers without notice

The company said these staff will be served with "enhanced" severance packages, calling it a "necessary decision" to protect its remaining 2,200 staff.

It said the business is "not viable" in its current state.

New foreign crew waiting to board the Pride of Hull on King George Dock. ⁦ @RMTunion ⁩ sitting in onboard the vessel. They will not be boarding her. We understands that both current officers and ratings are to be sacked. pic.twitter.com/JqJOWNxgDA — Karl Turner MP (@KarlTurnerMP) March 17, 2022

In a statement, the ferry operator said: "We have made a £100m loss year-on-year, which has been covered by our parent DP World. This is not sustainable. Our survival is dependent on making swift and significant changes now.

More on P&o

Fury as firm behind P&O sackings given major freeport role

'Absolutely nothing' done to boost workers' rights a year on from P&O sackings, say unions

P&O Ferries given ultimatum as firm's owner posts record profit

Related Topics:

"Without these changes, there is no future for P&O Ferries."

People in balaclavas 'taking British crew' off ships

Following the announcement, Labour MP Diana Johnson said people in balaclavas had been seen "taking British crew" off of the ships.

Making a point of order in the House of Commons, the Kingston upon Hull North MP described P&O's actions as "shameful" and warned they will have a "major economic impact on places like the Humber".

She said the staff who have been made redundant were being replaced by agency staff in buses on the quayside.

RMT representative Gaz Jackson told Sky News that he had been aboard one of the vessels when the news broke.

He said officers were played one Zoom video and given the chance to join the new company that will carry on the service, while ratings were played a different Zoom video and not given the same opportunity.

RMT general secretary Mick Lynch confirmed he had been receiving reports of security guards at Dover seeking to board ships with handcuffs to remove crew. He said the union is seeking "urgent legal action" and called for the government to "take action to stop what is fast turning into one of the most shameful acts in the history of British industrial relations". "If this happens at P&O it can happen anywhere, and we are calling for mass trade union and wider public mobilisation and protest against the company," Mr Lynch added.

Union members advised to stay onboard

RMT national secretary Darren Procter said the move by P&O Ferries "puts a knife right through the heart of UK maritime".

Meanwhile, Nautilus International union's general secretary Mark Dickinson said the union believes it is "in our members' best interests to stay onboard" until further notice.

He added: "The news that P&O Ferries is sacking the crew across its entire UK fleet is a betrayal of British workers.

"It is nothing short of scandalous given that this Dubai owned company received millions of pounds of British taxpayers' money during the pandemic"

'Significant disruption' expected as long queues seen in Dover

Lorry queues have been building up around Dover following the suspension of services.

P&O warned there would be "significant disruption" across its ferries services over the next few days but said it was working to minimise impact on customers.

#PODover #POCalais Our services are unable to run for the next few days. Please arrive as booked, we will get you away on an alternative carrier as quickly as possible. Once at the port, please make your way to the DFDS check-in booths. We apologise for the inconvenience. — P&O Ferries Updates (@POferriesupdate) March 17, 2022

Morgan Ryan told Sky News he arrived at Larne in Northern Ireland with his family for the 8am sailing to Cairnryan - having been up since 4am - when they noticed people being turned away.

"We got to the front of the queue and a P&O staff member informed us all services had been suspended."

Please use Chrome browser for a more accessible video player

He said they were directed to Belfast and assured all bookings had been rearranged with another company.

"Of course, when we got there they had no knowledge of any arrangement and had not received any contact from P&O."

Having paid €420 (£360) for the original booking, the family had to pay an additional £320 for the replacement trip.

Government 'concerned' at suspension

Earlier on Thursday, Transport Secretary Grant Shapps said his officials will be having "urgent discussions" with P&O Ferries as he expressed concern at the suspension of sailings.

The company, which transports passengers and freight, is owned by Dubai-based logistics giant DP World and operates four routes: Dover to Calais; Hull to Rotterdam; Liverpool to Dublin; and Cairnryan, Scotland, to Larne, Northern Ireland.

Following the coronavirus outbreak, P&O Ferries warned in May 2020 that around 1,100 workers could lose their jobs as part of a plan to make the business "viable and sustainable".

Have you been affected by the redundancies or had your sailing cancelled? Email [email protected]

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Fears of major job losses as P&O Ferries suspends sailings for several days

P&O Ferries has suspended sailings “for the next few days” amid speculation it is preparing to sack hundreds of workers.

The ferry operator said in an internal statement it will make “a major announcement” which will “secure the long-term viability of P&O Ferries”.

Rail, Maritime and Transport (RMT) union general secretary Mick Lynch said there is “growing speculation that the company are today planning to sack hundreds of UK seafarers and replace them with foreign labour”.

RMT members currently on board ships have been instructed by the union not to leave.

A crew member, who wished to remain anonymous, told KentOnline: “As of effect from today, all our contracts have been terminated and we’ve all been made redundant.”

Hull Labour MP Karl Turner posted a photograph of a coach which he stated contained “new foreign crew waiting to board the Pride of Hull” at the city’s King George Dock.

RMT members are “sitting in onboard the vessel”, so the new crew “will not be boarding her”, he wrote.

He added: “We understand that both current officers and ratings are to be sacked.”

In its internal statement, P&O Ferries said: “All our vessels have been asked to discharge their passengers and cargo and standby for further instructions.

“This means we’re expecting all our ports to experience serious disruption today.”

The company wrote on Twitter: “P&O Ferries services are unable to run for the next few days.”

Transport Secretary Grant Shapps told the House of Commons he is “concerned” by the situation.

He said: “I understand they have temporarily paused their operations and that’s causing disruption at the short straits – Calais-Dover – as well as some other ports.

“I’m working with the Kent Resilience Forum and I’ve just instructed them to become intricately involved, and other partners in this, and we’ll be taking steps later today – including ensuring that my officials will be having urgent discussions with P&O about the situation, particularly of concern for their workers.”

P&O Ferries, which transports passengers and freight, has nearly 4,000 employees.

It operates four routes: Dover to Calais; Hull to Rotterdam; Liverpool to Dublin; and Cairnryan, Scotland, to Larne, Northern Ireland.

Sailings between Hull and Zeebrugge, Belgium, were axed in January 2021.

Regretfully, P&O Ferries services are unable to run for the next few hours. Our Port Teams will guide you and travel will be arranged via an alternative operator. We apologise for the inconvenience this will have on your journey plans. — P&O Ferries (@POferries) March 17, 2022

The firm was bought by Dubai-based logistics giant DP World for £322 million in 2019.

DP World was criticised for paying a £270 million dividend to shareholders at the end of April 2020 while P&O Ferries proposed to cut around 1,100 jobs as demand for travel collapsed due to the coronavirus pandemic.

The ferry operator sought a £150 million bailout from the Government, but no offer was made.

P&O began operating ferries in the 1960s.

Cruise line P&O Cruises is unaffected by the developments as it is a separate business owned by Carnival UK.

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Who owns P&O Ferries? When DP World bought the firm and why P&O Cruises is unaffected by cuts announcement

P&o ferries is owned by dp world, a logistics company based in dubai that bought the firm for the second time in 2019.

P&O Ferries fired 800 members of staff  on Thursday, sparking outrage from politicians and workers alike.

Unions threatened legal action against the firm, describing the move as “one of the most shameful acts in the history of British industrial relations”.

The operator said it has suspended  ferries  for “for the next few days,” and that crew members will be given “enhanced” compensation packages .

Transport minister Robert Courts later said that passengers should expect disruption to ferry routes in coming days, with P&O likely to suspend all services for as long as 10 days.

Workers have staged sit-in protests on board grounded ships, with coaches carrying agency workers hired to replace them are parked near ships at ports.

Who owns P&O Ferries?

P&O Ferries is owned by DP World, a logistics company based in Dubai and owned by the prominent Emirati businessman Sultan Ahmed bin Sulayem.

DP World bought the company back from Dubai World in February 2019, having initially owned it for a short time in 2006.

P&O began operating ferries in the 1960s – the cruise line P&O Cruises is unaffected by the developments as it is a separate business owned by Carnival UK.

DP World was criticised for paying a £270 million dividend to shareholders at the end of April 2020 while P&O Ferries cut around 1,100 jobs as demand for travel collapsed due to the coronavirus pandemic.

In its statement, P&O said that its parent company had been covering £100 million of losses year on year, which it described as “not sustainable”.

The ownership of P&O Ferries has been the focus of some of the criticism directed at the firm after its announcement on job losses

Mark Dickinson, general secretary of maritime union Nautilus International, said: “The news that P&O Ferries is sacking the crew across its entire UK fleet is a betrayal of British workers.

“It is nothing short of scandalous given that this Dubai-owned company received millions of pounds of British taxpayers’ money during the pandemic.”

Conservative MP Huw Merriman, who chairs the Commons Transport Select Committee, described the sacking of staff as “appalling”.

He said: “The Government should make it clear that it will not condone this behaviour. P&O’s parent company, DP World, must understand that British customers won’t do business with companies that treat their staff with contempt.”

What has P&O Ferries said?

A spokesperson for P&O Ferries said the company was currently not a “viable business” in a statement on Thursday.

The firm said: “P&O Ferries plays a critical role in keeping trade flowing, supply chains moving, and connecting families and friends across the North and Irish seas and the English Channel.

“We have been at the heart of this service for years and we are committed to serving these vital routes.

“However, in its current state, P&O Ferries is not a viable business. We have made a £100m loss year on year, which has been covered by our parent DP World. This is not sustainable.

“Our survival is dependent on making swift and significant changes now. Without these changes there is no future for P&O Ferries.

More on P&O Ferries

“These circumstances have resulted in a very difficult but necessary decision, which was only taken after seriously considering all the available options.

“As part of the process we are starting today, we are providing 800 seafarers with immediate severance notices and will be compensating them for this lack of advance notice with enhanced compensation packages.

“In making this tough decision, we are securing the future viability of our business which employs an additional 2,200 people and supports billions in trade in and out of the UK.

“And we are ensuring that we can continue serving our customers in a way that they have demanded from us for many years.”

What has the reaction been?

Mick Lynch, general secretary of the Rail, Maritime and Transport union, said: “We are seeking urgent legal action and are again calling for the Government to take action to stop what is fast turning into one of the most shameful acts in the history of British industrial relations.”

P&O workers in Dover clashed with motorists after blocking a road close to the port in protest at being sacked. Dozens of employees who lost their jobs stood on the road with banners and flags saying “Stop the P&O jobs carve up”.

One man, who has worked in ferry engine rooms since the 1980s, told the PA news agency: “I’m fuming, to be honest with you. I’ve known people who’ve been with the firm for years – this is no way to treat people.

“It was just a short message this morning saying you’ve all lost a job, basically, all this service for nothing.”

Shadow transport secretary Louise Haigh said employers “cannot be given free rein to sack workers and replace them with agency staff”.

Transport Secretary Grant Shapps said his officials “will be having urgent discussions with P&O about the situation, particularly of concern for their workers”.

Manuel Cortes, Transport Salaried Staffs Association general secretary, said: “This is absolutely despicable behaviour from P&O, designed to reduce pay and worsen terms and conditions for their staff.

“They should be ashamed of themselves, treating loyal and hardworking staff like this.”

Most Read By Subscribers

Fears of major job losses as P&O Ferries suspends sailings for several days

The ferry operator said in an internal statement it is set to make ‘a major announcement’.

P&O Ferries has suspended sailings “for the next few days” amid speculation it is preparing to sack hundreds of workers.

The ferry operator said in an internal statement it will make “a major announcement” which will “secure the long-term viability of P&O Ferries”.

Rail, Maritime and Transport (RMT) union general secretary Mick Lynch said there is “growing speculation that the company are today planning to sack hundreds of UK seafarers and replace them with foreign labour”.

RMT members currently on board ships have been instructed by the union not to leave.

A crew member, who wished to remain anonymous, told KentOnline: “As of effect from today, all our contracts have been terminated and we’ve all been made redundant.”

RMT members are “sitting in onboard the vessel”, so the new crew “will not be boarding her”, he wrote.

He added: “We understand that both current officers and ratings are to be sacked.”

In its internal statement, P&O Ferries said: “All our vessels have been asked to discharge their passengers and cargo and standby for further instructions.

“This means we’re expecting all our ports to experience serious disruption today.”

The company wrote on Twitter: “P&O Ferries services are unable to run for the next few days.”

Transport Secretary Grant Shapps told the House of Commons he is “concerned” by the situation.

He said: “I understand they have temporarily paused their operations and that’s causing disruption at the short straits – Calais-Dover – as well as some other ports.

“I’m working with the Kent Resilience Forum and I’ve just instructed them to become intricately involved, and other partners in this, and we’ll be taking steps later today – including ensuring that my officials will be having urgent discussions with P&O about the situation, particularly of concern for their workers.”

P&O Ferries, which transports passengers and freight, has nearly 4,000 employees.

It operates four routes: Dover to Calais; Hull to Rotterdam; Liverpool to Dublin; and Cairnryan, Scotland, to Larne, Northern Ireland.

Sailings between Hull and Zeebrugge, Belgium, were axed in January 2021.

The firm was bought by Dubai-based logistics giant DP World for £322 million in 2019.

DP World was criticised for paying a £270 million dividend to shareholders at the end of April 2020 while P&O Ferries proposed to cut around 1,100 jobs as demand for travel collapsed due to the coronavirus pandemic.

The ferry operator sought a £150 million bailout from the Government, but no offer was made.

P&O began operating ferries in the 1960s.

Cruise line P&O Cruises is unaffected by the developments as it is a separate business owned by Carnival UK.

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P&O Cruises is Britain’s favourite cruise line. We are part of Carnival Corporation & PLC and we have been for 20 years. With amazing career opportunities across the fleet, we’ll help you settle into an exciting life at sea as part of our P&O Cruises family.

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P&O Ferries sacks all 800 crew members across entire fleet

Unions brand move ‘scandalous’ with jobs axed without notice and agency workers lined up to staff vessels

The leading UK ferry operator, P&O Ferries, has sacked 800 British crew across its entire fleet after stopping all its sailings on Thursday.

Unions called on the government to halt what it called a “scandalous betrayal”, with P&O planning to use cheap agency staff to operate its ships.

The operator, owned by the Dubai-based DP World, earlier told crew to return to port and await a “major announcement” in a sudden move likely to cause serious disruption to travel for passengers and freight.

Security staff were preparing to remove crew from ships in Dover and Larne, Belfast, after unions instructed crew not to leave vessels. Coaches carrying replacement agency staff were reported to be standing by at Dover and Hull.

The RMT said that guards with handcuffs were seeking to board ships to remove crew so they could be replaced with cheaper labour.

The union’s general secretary, Mick Lynch, said it was seeking urgent legal action over “one of the most shameful acts in the history of British industrial relations”. He added: “We have instructed our members to remain on board and are demanding our members across P&O’s UK operations are protected, and that the secretary of state intervenes to save UK seafarers from the dole queue.”

Staff were told by video message that P&O “vessels will be primarily crewed by a third party crew provider … Your final day of employment is today.”

The transport minister Robert Courts told MPs that passengers should expect disruption to ferry routes in coming days, with P&O likely to suspend all services for as long as 10 days.

DP World, one of largest port operators globally, is owned by Dubai’s sovereign wealth fund, and chaired by Sultan Ahmed bin Sulayem , who also heads Dubai’s customs authority. The group owns London Gateway port – the centrepiece of the first of the controversial freeports championed by the chancellor, Rishi Sunak, and established by the government last year.

A spokesperson for P&O Ferries said it had to take a “very difficult but necessary decision” to “secure the future viability of our business, which employs an additional 2,200 people, and supports billions in trade in and out of the UK”.

They added: “However, in its current state, P&O Ferries is not a viable business. We have made a £100m loss year-on-year, which has been covered by our parent DP World. This is not sustainable. Our survival is dependent on making swift and significant changes now.”

P&O had earlier told staff – in a note posted on social media by Hull’s Labour MP, Karl Turner – that it would “be making a major announcement today”, adding: “To facilitate this announcement all our vessels have been asked to discharge their passengers and cargo and stand by for further instructions. This means we’re expecting all our ports to experience serious disruption today.”

Turner said the sackings were “utterly deplorable predatory practice taking full advantage of the gap in the legislation”.

Labour’s shadow transport secretary, Louise Haigh, called on the government to act, saying: “Unscrupulous employers cannot be given free rein to sack their workforce in secure jobs and replace with agency staff. The Conservative government must not give the green light to this appalling practice, and must act to secure the livelihoods of these workers.”

The transport select committee chair, the Conservative Huw Merriman, joined calls for government action, saying: “The government must do everything it can to ensure that this appalling employment transaction cannot be completed.”

P&O is the leading ferry operator on the Dover-Calais crossing, the main sea link from Britain and Europe, and also sails from Hull to Rotterdam, Liverpool to Dublin and Cairnryan in Scotland to Larne.

Unions demanded assurances and government intervention to protect British jobs.

The maritime union Nautilus International said the news was “a betrayal of British workers”. Its general secretary, Mark Dickinson, said: “It is nothing short of scandalous, given that this Dubai-owned company received British taxpayer’s money during the pandemic.

“There was no consultation and no notice given by P&O. Be assured, the full resources of Nautilus International stand ready to act in defence of our members. We have instructed our members to stay onboard until further notice.”

The head of the European seafarers’ union ETF, Livia Spera, said it was “astonishing that this can happen in major developed country like the UK”.

P&O Ferries was given £33m in emergency funding by the government to ensure freight kept sailing during the pandemic.

The transport secretary, Grant Shapps, asked by Labour in the Commons, said he was “concerned” by the news. He told MPs he was working with the Kent Resilience Forum to manage disruption from the cross-Channel closure, adding: “We will be taking steps later today, including ensuring officials are having urgent discussion with P&O about the situation, particularly concerning their workers.”

Cross-Channel ferry passengers and truck drivers were expected to be diverted to DFDS or Eurotunnel services. Passengers on Irish Sea crossings have been sent to Stena Line.

Many customers were left stranded by the announcement. A driver in Calais due to return to the UK told the PA news agency he had been waiting for a ferry since 6am, adding: “More than anything I’m frustrated at the fact nobody from P&O was there to help and advise. I’ve never had such shoddy service from anybody.”

DP World bought P&O Ferries for a second time in 2019, for £322m, after selling it earlier in the decade.

The business is believed to have been making escalating losses, with the rising cost of diesel adding to disruption from Covid and post-Brexit paperwork in cross-Channel traffic. DP World said it had never taken a dividend from P&O Ferries.

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• Trade unions
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Cruise staff say Carnival UK threatened to get rid of 919 of them if they refuse to take pay cuts

• Cruise crew members are accusing Carnival UK of threatening to "fire and rehire" 919 of them.
• A maritime union said Carnival UK filed a notice of mass layoffs as it was negotiating pay cuts.
• The union said it was similar to a 2022 scandal where another cruise company replaced workers with underpaid foreign workers.

UK cruise giant Carnival has been accused by union employees of threatening to fire more than 900 crew members if they don't take pay cuts as high as 20%.

Nautilus International, a trade union representing the maritime workers, on Thursday said Carnival UK was indicating amid negotiations that it wanted to "fire and rehire" 919 employees.

The accusation references a previous scandal involving another cruise company, P&O Ferries. Unions said P&O Ferries fired 800 workers in 2022 without notice, and replaced them with foreign agency workers paid as little as $2.26 an hour.

Now, Nautilus alleges Carnival UK is threatening to pull off a similar move.

Carnival UK, which runs 10 cruise ships through operators P&O Cruises and Cunard, denied such claims. P&O Cruises and P&O Ferries are wholly separate companies.

"We are categorically not making any redundancies and will not dismiss and re-engage staff," a Carnival UK spokesperson told Business Insider, saying the firm was conducting an "annual pay review process."

The entire dispute stems from negotiations between Carnival UK and Nautilus over potential pay cuts.

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In a statement seen by BI, Nautilus said the Carnival UK wants to "enforce a cut in 20% of their working days," which would effectively reduce the annual take-home pay of its ship workers.

The union said it started negotiations on November 14, but was told on Wednesday evening that Carnival UK had filed a HR1 form — a notice that companies must submit to the UK government when carrying out mass layoffs.

Nautilus alleged that Carnival UK's hiring firm, Fleet Maritime Services, wrote in the HR1 form that it didn't plan for redundancies, but that "dismissal and re-engagement may be considered if agreement cannot be reached on new terms."

The union said this showed that Carnival UK "never had any intention of 'meaningful negotiation.'"

Carnival UK's spokesperson told BI that instead of redundancies, the company has "significantly increased our headcount across our fleet."

They said Carnival UK's pay review would "ensure alignment" between the company and its maritime workers. "This will empower our staff, deliver the right teams across our fleet, and attract and retain talent to work on our ships," the spokesperson added.

Carnival UK is run by the Carnival Corporation group, which also operates Carnival Cruise Line, the US cruise company.

The group also operates Princess Cruises and P&O Cruises Australia.

November 24, 2023: This story was updated to reflect comment from Carnival UK and Nautilus International.

Watch: The rise and fall of the cruise industry

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