Carnival UK has withdrawn plans to use a controversial strategy known as “fire-and-rehire” in negotiations over pay and working conditions for more than 900 crew members.

Last week trade union Nautilus International received a copy of the HR1 form Carnival UK sent to the Insolvency Service, which said: “Dismissal and re-engagement may be considered if agreement cannot be reached on new terms”.

Following “urgent discussions” between Nautilus and Carnival, the company has committed to withdrawing the threat.

According to Nautilus, the company has also committed to informing the Insolvency Service and Bermudan authorities of the withdrawal of the HR1 form, and clarified to the union their intention from the outset was “that there would be no dismissal and reengagement or redundancies”.

Carnival UK withdrawal shows commitment to ‘meaningful consultations’

Nautilus executive officer Martyn Gray said: “This is a welcome move from Carnival UK and a positive indication of their commitment to engage in a meaningful consultation with us over changes to members’ terms and conditions.

“We thank them for their commitment to not dismiss and re-engage and look forward to working with them to come to a negotiated settlement in the interests of all parties.”

However, Gray continued, fire and rehire – or dismissal and re-engagement – should “never be an option for any employer” to force changes to terms and conditions. He urged the UK government to outlaw the tactic, claiming a statutory code of practice is “not enough”.

Earlier this year president of P&O Cruises, Paul Ludlow, was named president of Carnival UK in a new consolidated position.