P&O Ferries CEO, Peter Hebblethewaite, insists on his decision to fire all its UK seafarers to bring in cheaper agency workers. He, however, seems to be supporting an increase in the minimum wage.
In a letter to the UK transport Minister, Grant Shapps, the P&O CEO said that re-employing the 786 crew members would cause the collapse of the DP World-owned ro-pax company. He had even admitted admitted that the company broke the law in full knowledge of its actions and highlighting that he would make the same decision again.
It is important to recall that the company fired almost 800 seafarers, 2 weeks ago, bringing chaos to many country’s ports and facing a barrage of criticism by many stakeholders. Peter Hebblethwaite was responding to a call from the UK transport minister in order to reinstate the crews, which were laid off with no notice on 17 March.
Hebblethwaite mentioned that he had considered all the other available option, however, the redundancies were the only way to save the loss-making company. He wrote that the call to give the workers their jobs back “unfortunately.. ignores the situation’s fundamental and factual realities”.
Complying with your request would deliberately cause the company’s collapse, resulting in the irretrievable loss of an additional 2,200 jobs
…he told Shapps.
I cannot imagine that you would wish to compel an employer to bring about its downfall, affecting not hundreds but thousands of families
…he added.
The letter claims that of the 786 sacked seafarers, “over 765” have now taken steps to accept the P&O Ferries’ settlement offer.
That is why the CEO argued this means it is too late to back down: more than 500 individuals have signed the compensation deal, including 67 officers, who have either accepted the offer to work with the company’s new crew provider, or are in the process of doing so.
We welcome the government’s commitment to increasing the minimum wage for all seafarers working in British waters
Hebblethwaite addressed the prospect of the government changing the law to close the loophole allowing owners of foreign-flagged ships operating from the UK to avoid paying the minimum wage.
We have never sought to undermine the minimum wage regulations. Indeed, from the outset, P&O Ferries has called for a level playing field regarding salaries on British ferry routes
…he added.
He went on to say that most of the needed cost savings arise from a new flexible working model, removing “job duplication”, rather than lower wages.
Please note that even if the national minimum wage were to be applicable, the need to adopt a different crewing model would not change
Hebblethwaite wrote.
As far as the payments are concerned, the CEO said that, in contrast to what was the case until now, the crews will be paid for the actual time they work rather than receiving full pay for working 24 weeks a year.
I profoundly regret the pain caused to so many dedicated P&O Ferries employees. I can further assure you that I am fully cognisant of the reputational cost to the P&O Ferries brand and me personally
Hebblethwaite concluded.
In light of these events, UK Chamber of Shipping, the trade association and voice of the UK shipping industry, said:
The ferry sector has faced huge challenges during the pandemic and we understand that P & O Ferries faced an incredibly difficult commercial situation. The Chamber does not condone how P &O Ferries dismissed 800 seafarers without consultation.
UK Chamber of Shipping also mentioned that following the announcement by the Secretary of State, the association is working closely with the Department for Transport, the members and other stakeholders to create a commercially viable UK model for the international ferry services.
Furthermore, the association highlighted the importance of establishing and agreeing with all stakeholders a construct which ensures a level playing field, to allow fair competition between UK ferry operators. On this foundation they will be able to deliver quality training jobs for seafarers and quality services for their passengers and freight customers.
Our priority now is to support our members in seeking to stabilize ferry operations ahead of a busy season, when services have been hit significantly by vessels that are currently out of operation
…the association concluded.
And we will analyse and respond continuously as we fill in the detail and better understand the measures which are being introduced.”
And we will analyse and respond continuously as we fill in the detail and better understand the measures which are being introduced.”
Following this unfortunate situation, in a joint statement, the International Transport Workers’ Federation (ITF) and European Transport Workers’ Federation (ETF) are calling on DP World to engage in meaningful dialogue with affiliates RMT and Nautilus International about P&O Ferries’ future.
On March 22, UK MPs have voted in favour of an Opposition Day Motion condemning P&O Ferries and demanding that the government take action to improve employment protection for all workers in light of the company’s actions.
British Prime Minister Boris Johnson said that he believed that the Dubai-owned British ferry company broke the law and that the government would take legal actions.
