P&O Ferries CEO Admits Inability to Live on Staff’s Low Wages
The chief executive of P&O Ferries, Peter Hebblethwaite, has faced scrutiny from the Commons’ Business and Trade Committee for the company’s controversial decision to fire and rehire nearly 800 workers, resulting in lower wages for some employees. During the hearing, Mr. Hebblethwaite admitted that he could not live on the wages some of his staff are currently being paid, which is less than £5 per hour.
The average wage for P&O Ferries employees is currently £5.20 per hour, two years after the company made 786 redundancies and rehired staff at lower rates. Mr. Hebblethwaite acknowledged that some workers are earning as little as £4.87 per hour, with some being paid as low as £2.90 for their first eight hours of work.
Committee chair Liam Byrne questioned Mr. Hebblethwaite, asking if he could survive on £4.87 per hour. The CEO responded, “No, I couldn’t,” while also revealing that he earned £508,000 last year, including a bonus of £183,000.
Although he acknowledged that he could not live on such a wage, Mr. Hebblethwaite defended the company’s rates, stating that they are “considerably ahead of international minimum standards.” He explained that P&O Ferries employs international seafarers through a crewing agent, and their wages are above the international minimum wage for seafarers.
It was also revealed during the hearing that P&O Ferries employs maritime workers through an overseas agency, and the UK’s national minimum wage of £11.44 per hour does not apply to them. Mr. Hebblethwaite stated that the company’s workers have a choice to work anywhere in the world and choose to work for P&O Ferries.
The controversial decision to fire and rehire nearly 800 staff in March 2022 is still under investigation by the government. While a criminal investigation by the insolvency service concluded that no criminal proceedings would be commenced, a civil investigation is still ongoing.
Mr. Hebblethwaite defended the company’s actions, stating that they have always complied with national and international law. He expressed regret for the impact the decision had on the affected employees and their families, stating that they would never make such a decision again.
The CEO also addressed concerns about workers’ rights, as P&O Ferries has yet to sign a seafarers’ rights charter. When asked if workers were allowed to leave the ship during a 17-week working period, Mr. Hebblethwaite stated that he believed they were, but there were some technicalities involved. He promised to provide a detailed response to the committee.
In response to the evidence presented, TUC (Trade Union Congress) head Paul Nowak expressed disbelief that P&O Ferries has faced no consequences for their actions and that their parent company, DP World, continues to receive government contracts. He also called for a modernization of employment laws to prevent similar situations from occurring in the future.
The hearing also highlighted the vulnerability of some workers in the labor market, particularly seafarers, who are susceptible to exploitation and lack enforceable rights. As the investigation into P&O Ferries’ actions continues, the hope is that changes will be made to prevent such scandals from happening again in the future.
