Transport Secretary calls for P&O Ferries boss to quit “right now"
After boss Peter Hebblethwaite admits to breaking employment law
Last updated 25th Mar 2022
Transport Secretary Grant Shapps has called for the boss of P&O Ferries to resign today after making comments about “knowingly breaking the law”.
Chief executive Peter Hebblethwaite admitted breaking employment law yesterday, when sacking 800 workers without notice via zoom on the 17th March.
The Transport Secretary has vowed to force the company to "U-turn" and pay staff the minimum wage.
The Transport Secretary told Sky News: "I thought what the boss of P&O said yesterday about knowingly breaking the law was brazen and breathtaking, and showed incredible arrogance.
"I cannot believe that he can stay in that role having admitted to deliberately go out and use a loophole - well, break the law, but also use a loophole."
When asked whether that meant he was calling for Mr Hebblethwaite to resign "right now", he said: "Yes."
Mr Hebblewaite was also urged to quit on Thursday, after he acknowledged there’s “absolutely no doubt” P&O ferries were required to consult with trade unions.
P&O Ferries staff paid below minimum wage
On Thursday Peter Hebblethwaite gave evidence to a Commons select committee, a week after sacking 800 staff members and replacing crews with cheaper agency workers.
Mr Hebblethwaite admitted that new staff are being paid below the UK’s minimum wage, apart from on domestic routes but insisted this is allowed under international maritime rules.
He revealed the average hourly pay of the new crew is £5.50, which is below the minimum wage of £8.91 for people aged 23 and above in the UK.
His basic annual salary as chief executive of the firm is £325,000.
When asked at the joint hearing of the Transport and Business Select Committees whether he would make the decision again, Mr Hebblethwaite said he would as it has saved the business.
Government plans after P&O Ferries admit to breaking the law
Mr Shapps said the Government is planning to change the law to ensure companies working from British ports pay their staff minimum wage, he condemned P&O for "evilly exploit(ing)" loopholes.
Adding that the move from the Government would force a "U-turn on what's happened at P&O".
"What I'm going to do ... is come to Parliament this coming week with a package of measures which will both close every possible loophole that exists and force them to U-turn on this," he said.
"We are not having people working from British ports ... and failing to pay the minimum wage. It's simply unacceptable and we will force that to change.
"P&O will need to re-employ people on the proper salaries.”
New legislation and changing the law
Grant Shapps told BBC Breakfast that maritime law was "complex" but he was preparing bring a package of "about eight" different measures to Parliament, where he believed there was a "very, very broad parliamentary agreement" that new legislation was needed.
He told Good Morning Britain, “We will make sure the laws are changed to stop them using loopholes like flagging their ships in Cyprus to avoid and evade British law, not give notice of what they were doing and not talk to the workers and the unions.
"They are completely outrageous, and we will not let it stand.
Mr Shapps turned to Twitter to say, “I've instructed a full review of our maritime employment laws and will be strengthening protections for seafarers' minimum wages - I will share an update in the coming days."
Mr Shapps added that the government "can't directly" revoke P&O's licence despite having broken the law, but instead asked the Maritime Coastguard Agency to carry out "very detailed inspections".
The minister said if new crews were being paid less than minimum wage and found to be unfamiliar with equipment, the ships would be deemed unsafe to sail.
Mr Shapps also said P&O Ferries had "attempted to pay off their staff with higher redundancy payments ... and therefore buy their silence".
Asked how Government plans to change the law would help sacked seafarers, the Transport Secretary said: "I actually happen to know because I've been speaking with some of them that some of them have already taken up a job, so they may not get those particular ones back.
"I suspect they'll get some of them back, although I imagine they'll have a slightly rather jaded view of their employer as P&O".
Knowing about job cuts at P&O Ferries
Mr Hebblethwaite also told the committee on Thursday that Mr Shapps knew about the intention to cut jobs in November last year, although the Department for Transport strongly denied it.
When asked about the claim, Mr Shapps said it was a way to "distract attention" from its failure to provide notice of job cuts.
He added that he "didn't see" an email sent round Whitehall about P&O's plans the night before the mass sackings and was told "at the despatch box".
"Frankly, even if I had known the night before, which I didn't, they'd already broken the law by not providing 45 days' notice, by using the Cyprus flag to get around it”, he said.
Demanding reinstatement of sacked seafarers
The Rail, Maritime and Transport union said it will be meeting with P&O Ferries today to demand the reinstatement of the sacked seafarers.
TUC general secretary Frances O'Grady said it was a "watershed moment" for the UK shipping industry and workers' rights.
"(P&O's) owner must be given pariah status and lose all its government shipping and freeport contracts with immediate effect until workers are reinstated."
More protests are being planned this weekend as unions keep up the pressure on both the company and the Government to take action.
P&O Ferries suspend services
Concern first began after P&O Ferries, which has operated since 1884, said it would suspend services "for the next few days". There had been speculation over whether the company would close after its share prices were continuing to fall, but the company said there would be "a major announcement" on March 17th.
Staff made redundant
On the evening of March 17th, P&O Ferries announced that 800 of its staff would be made redundant effective immediately. The decision was communicated to staff over a video message delivered over Zoom. Many workers were already on board ships when the news was made public. As a result, staff on one ship - the Pride of Hull - refused to get off the boat, once docked.
Protests erupt opposing the sacking
Immediately following the redundancy announcement, many union workers began to protest across the UK, where P&O Ferries holds several routes. The Rail, Maritime and Transport Union (RMT) organised demonstrations in Liverpool, Hull and Dover, while the crew of the Pride of Hull ship continued to refuse to disembark in protest at the company's decision.
P&O Ferries compensation for sacked staff
On March 22nd, P&O Ferries announced it's offering more than £36 million in compensation to sacked staff, with 40 employees in line for payments of more than £100,000.
It said payouts would be linked to the period of service, and in some cases exceed £170,000, with no worker set to receive less than £15,000. Employees are also being given support to find a new job at sea or onshore.
Prime Minister weighs in
The P&O Ferries scandal spread throughout political spheres, with Transport Secretary Grant Shapps saying the Government was "seriously reconsidering" its relationship with P&O Ferries. At Prime Minister's Questions on Wednesday (March 23rd), Boris Johnson added to the criticism, saying that the company will face investigation to see if it has broken UK law.
P&O Ferries boss admits they broke law over sackings
The firm's boss Peter Hebblewaite gave evidence to a Commons select committee a week after sacking staff via zoom. He revealed that new staff are being paid between £5.15 and £6 an hour, which is below the UK's minimum wage of £8.91.
Transport Secretary calls for P&O Ferries boss to resign
Transport Secretary Grant Shapps has called for Peter Hebblewaite to quit "right now". He told Sky News, "I cannot believe that he can stay in that role having admitted to deliberately go out and use a loophole – well, break the law, but also use a loophole."