A Dubai-owned ferry firm has admitted that it broke the law when it fired 800 UK-based staff with no notice.
P&O Ferries, which was bought by Dubai-based logistics giant DP World in 2019, sparked outrage on March 17 when it fired 800 seafarers without any prior notice and replaced them with cheaper agency workers.
At a Parliamentary hearing on March 24, P&O Chief Executive Peter Hebblethwaite acknowledged there is “absolutely no doubt” the ferry operator was required to consult with trade unions.
He said the firm decided not to consult the unions because “a consultation process would have been a sham,” as “given the fundamental nature of change, no union could accept it.”
“We didn’t want to put anybody through that. We are compensating people in full and up-front for that decision,” he told a joint session of the transport and business select committees of the House of Commons.
Andrew Burns QC, barrister at Devereaux Chambers, told the hearing that “all employers with ships must give a notice to the appropriate authority 45 days before dismissal.”
“My understanding from what I’ve been told this morning is that the notice was given to the appropriate authorities in the countries where the ships are flagged only on the day of the dismissals and not in advance,” he said.
That “appears to be a breach” of employment law, and “it may be that (P&O Ferries) are liable to a prosecution,” he told MPs.
Hebblethwaite said the new crews are being paid below the UK’s minimum wage apart from on domestic routes, but insisted this is allowed under international maritime rules.
The minimum wage in the UK for people aged 23 and above is £8.91 ($11.74) per hour. But according to Hebblethwaite, the average hourly pay of the new crew is only £5.50 ($7.25).
“We are paying above ITF (International Transport Workers’ Federation) minimum wages,” he said.
Hebblethwaite also claimed Transport Secretary Grant Shapps knew about the firm’s intention to cut jobs last year, as he was informed on Nov. 22 by P&O Ferries’ owner DP World that the company would be changing its business model.
But the Department for Transport (DfT) denied any prior knowledge of the sackings.
A DfT spokeswoman said: “DP World did not mention to the Transport Secretary any changes it would be making to P&O Ferries and there was no indication of the completely unacceptable changes it has subsequently made.”
