P&O Ferries knew it was breaking employment law by axing 800 seafarers without consulting unions but did it anyway, its chief executive said yesterday.
Peter Hebblethwaite told a Commons hearing he would do the same again as he confirmed replacement workers were being paid less than the UK minimum.
MPs called for him to be prosecuted. Labour’s Darren Jones asked the boss: “Are you in this mess because you don’t know what you are doing or because you are a shameless criminal?”
P&O Ferries deliberately broke the law by failing to consult unions before sacking 800 staff because it knew they would fight the move, boss Peter Hebblethwaite has said.
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He also admitted agency workers – brought in to replace loyal seafarers who were axed on the spot – were being paid less than the national minimum wage.
The £325,000-a-year fatcat, who would not rule out accepting a bonus, insisted he would do the same again, claiming the sackings were necessary because “P&O was otherwise going to close”.
He told the Commons Business Select Committee: “There is absolutely no doubt we were required to consult the union. We chose not to do that. It was our assessment that the change was of such a magnitude that no union would possibly accept our proposal. I would make the same decision again.”
Chairing, Labour MP Darren Jones asked him: “Are you in this mess because you don’t know what you are doing or because you are a shameless criminal?”
Mr Jones later tweeted: “He should be fined, struck off and prosecuted.”
Labour MP Andy McDonald accused P&O of “absolute thuggery”, adding: “You’re behaving like gangsters.”
Mr Hebblethwaite said P&O is “fully compensating” those axed by offering at least £15,000 each, but the hearing was told this included a gagging order.
RMT chief Mike Lynch told MPs: “They are threatening and blackmailing our people.”
Repeating a belated apology to sacked staff, Mr Hebblethwaite claimed the non-disclosure clause is there “to protect both sides”.
The RMT has claimed replacement crew were paid as little as £1.80 an hour. Mr Hebblethwaite insisted the lowest rate was £5.15, but that is still well below the national minimum of £8.91 for those aged 23-plus. P&O said it can undercut the UK minimum because its vessels operate in international waters. Transport Minister Robert Courts suggested ministers could close this loophole.
Tory MP Simon Jupp told Mr Hebblethwaite: “You may have avoided financial bankruptcy but in the eyes of many you are morally bankrupt.”
The RMT called for an injunction to stop P&O ships sailing and urged the Government to ensure workers are
reinstated. Labour asked the Prime Minister to clarify what legislation will be used to bring a promised prosecution.
Mr Hebblethwaite claimed parent firm DP World spoke to Transport Secretary Grant Shapps last year about issues at P&O. But Mr Courts said his understanding was that discussions did not go beyond that.
