P&O Ferries - live: CEO says firm broke the law but would ‘make this decision again’
‘I would make this decision again, I’m afraid,’ says Peter Hebblethwaite of mass sackings
‘I would make this decision again, I’m afraid,’ says Peter Hebblethwaite of mass sackings
P&O chief executive admits firm broke law by choosing not to consult with unions
P&O Ferries chief executive has admitted the firm broke the law by choosing not to consult over the mass sacking of 800 workers on the spot, but said he would do the same again if given the opportunity.
When asked by the Conservative MP Nus Ghani if he would “change anything, knowing what you know now”, Peter Hebblethwaite said: “This is the only way to save this business and we have moved to a model that is internationally recognised across the globe and widely used by our competitors.
“I would make this decision again, I’m afraid.”
Mr Hebblethwaite was appearing before a joint hearing of the transport and business committees this morning, after MPs and unions alike questioned the legality of the dismissals of hundreds of UK staff last week, which were issued over a recorded video message without notice.
Labour MP Darren Jones opened the questioning of Mr Hebblethwaite by asking, “Are you in this mess because you don’t know what you’re doing, or are you just a shameless criminal?”
Mr Hebblethwaite defended the company’s actions, saying: “We thought long and hard about the routes to this.
“We concluded that every single option available to us would result in the closure of P&O.
“It is a fundamentally different operating model and no union would accept our proposal.”
Read on for the latest news and developments.
‘Shameless’ Hebblethwaite ‘should be fined, struck off and prosecuted’, says Darren Jones
The chair of the Business, Energy and Industrial Strategy (BEIS) Committee, Darren Jones, has taken to Twitter to voice his amazement at P&O boss Peter Hebblethwaite’s comments at today’s hearing.
“I’m amazed that the P&O CEO came to Parliament today, confirmed he wilfully broke the law, decided to pay off the sacked workers but make them sign gagging clauses and that he would do it all again,” wrote the Labour MP for Bristol North West.
“He should be fined, struck off and prosecuted. Shameless.”
Lucy Thackray24 March 2022 14:25
P&O actions ‘fuelled by sheer greed’, says Liverpool mayor
Liverpool’s mayor Joanne Anderson has spoken out against P&O’s conduct and comments in this morning’s hearing.
“Peter Hebblethwaite, CEO of P&O has just declared at a parliamentary select commitee that his salary £325,000.
“He is also stating he cannot commit to refusing his two performance related bonuses. This blatant disregard for workers and their rights is fuelled by sheer greed,” she wrote.
Lucy Thackray24 March 2022 14:13
Government will change labour laws to prevent P&O-style sackings
Ben Bradshaw, the senior Labour MP and former cabinet minister, has demanded new laws to prevent a repeat of the abrupt sacking of 800 staff by P&O Ferries.
He asked the maritime minister, Robert Courts: “The problem here is that this company has broken the law because it knows it can get away with it, because the legal remedies are capped. Are you going to do something about that?
Mr Courts replied: “We are looking to bring forward a package that will stop this situation from happening, to make sure people are treated with, not only the respect, but to give them the protection they deserve.
“I can’t go into the detail of what that might be at the moment. We’ll look at all options.”
Mr Bradshaw also asked the maritime minister about a meeting between DP World and the transport secretary, Grant Shapps, in November 2021.
Mr Courts said he had been unaware of the meeting until today.
Simon Calder24 March 2022 13:21
‘We are as horrified as anyone else,’ says Maritime Minister
Following Peter Hebblethwaite’s appearance, Maritime Minister Robert Courts MP said the government is “as horrified as anyone else” by P&O Ferries’ axing of staff and will come to Parliament next week with a package of proposals.
Mr Courts added that Mr Hebblethwaite had cancelled a planned introductory meeting with him earlier this year, and had failed to respond to his office’s requests to reschedule.
Helen Coffey24 March 2022 13:11
‘Poverty wages’ for new P&O staff labelled ‘exploitation'
P&O Ferries has been accused of “exploitation” after revealing it will swap sacked workers for cheaper agency staff on low wages.
Human rights organisation Anti-Slavery International has expressed concern over the move.
“We are shocked to hear allegations that P&O Ferries have hired new staff on as little as £1.80 per hour as reported by the Rail, Maritime and Transport (RMT) Union,” said Anti-Slavery International’s private sector advisor, Eloise Savill.
“This is a clear sign of exploitation and we are very concerned that replacing the crew with staff from a third-party agency will reduce oversight and transparency around recruitment, working conditions and pay.
“We reiterate our call for a new Business, Human Rights and Environment Act, one which would introduce a legal requirement for firms to take responsibility to identify and ensure workers are given the basic dignities of safe working conditions, reasonable hours and decent pay.”
Helen Coffey24 March 2022 12:45
‘You are now a laughing stock,’ Paul Howell says of Peter Hebblethwaite
The Tory MP Paul Howell has told Peter Hebblethwaite, chief executive of P&O Ferries: “You are now a laughing stock.”
He said: “I think it’s bizarre that you’ve chosen to break the law. It’s incomprehensible to me.
“You are now a laughing stock. I don’t know whether you’ll find it’s your Gerald Ratner moment.”
In 1991, Mr Ratner was chief executive of the chain of jewellers that bore his name. In a speech to the Institute of Directors, he described one of its products as “total crap”. The company lost £500m in value and changed its name to the Signet Group.
Mr Howell, who represents Tony Blair’s former constituency of Sedgefield, added: “It seems contemptible, for any right-minded people, as to the way you’re running your business.”
“With hindsight, you really think this is a viable way to run a business?”
Mr Hebblethwaite replied: “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.”
Later, he said: “No question, the brand has taken a hit.
“But we now have a competitive, modern business.
“We have a future now.”
Simon Calder24 March 2022 12:34
‘I would make this decision again, I’m afraid’ – P&O Ferries boss on mass sacking of crew
Peter Hebblethwaite, chief executive of P&O Ferries, has said that he would carry out the mass redundancy again.
He was asked by the Conservative MP, Nus Ghani “Would you change anything, knowing what you know now, about what you did last Thursday?”
“That’s a really, really difficult question, Mr Hebblethwaite replied.
“The business would close. The business was not viable. This is the only way to save this business and we have moved to a model that is internationally recognised across the globe and widely used by our competitors.
“I would make this decision again, I’m afraid.”
Simon Calder24 March 2022 12:17
‘P&O Ferries have been operating since 1844 and in one Zoom meeting you’ve trashed it all’ – Nus Ghani
“What a mess,” said the Conservative MP Nus Ghani, while questioning Peter Hebblethwaite, chief executive of P&O Ferries.
“So P&O Ferries have been operating since 1844 and then in one Zoom meeting you’ve trashed it all.
“Eight hundred people now on the dole and you’re now trying to clean this up, having ruined the reputation of P&O Ferries.”
Earlier, Mr Hebblethwaite said: “This was a P&O Ferries board decision. This was not forced on us, or indeed suggested to us, by DP World.
“The reaction to this has been extremely strong, and I do regret that and I recognise it, I really, really do recognise it, but there was no P&O without the changes we needed to make.
“We anticipated this would be very difficult and very controversial.
“We’ve got a tough job to do to rebuild the business, but I think a P&O with a future and a P&O that is able to be competitive, pay its own bills and offer customers services that are required has a much better chance.”
Simon Calder24 March 2022 12:05
‘Grant Shapps met P&O Ferries’ parent company in Dubai’ says CEO
The transport secretary, Grant Shapps, met executives from DP World – the Dubai-based company that owns P&O Ferries – four months ago, MPs have been told.
Peter Hebblethwaite, chief executive of P&O Ferries, told a committee hearing: “I believe that on 22 November, the secretary of state for transport was visiting Dubai, and at Expo he met with some of the DP World exec team, and that as part of a broader ranging discussion, which included ongoing investment in the UK, the subject of P&O Ferries was brought up, and that we would be needing to make changes to our business this year.
“At that point in our planning, we hadn’t finalised our plans, so I doubt that any conversation went further than that. But I don’t know.”
Simon Calder24 March 2022 12:00
P&O Ferries accused of ‘absolute thuggery and criminality'
Andy McDonald, the former shadow transport secretary, said of the issuing of non-disclosure agreements (NDAs): “The members of this committee think this is absolute thuggery and criminality.
“You’re behaving like gangsters,” he told Peter Hebblethwaite, chief executive of P&O Ferries.
“Will you withdraw those NDAs and let people have the freedoms that we all enjoy?”
Mr Hebblethwaite replied: “It’s a standard confidentiality clause, and actually it’s there to protect both sides.”
Mr McDonald sighed and said: “Oh God.”
Simon Calder24 March 2022 11:55
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