Peter Hebblethwaite, the chief executive officer of P&O Ferries, has admitted to paying the firm’s workers as little as £4.87 per hour, reigniting controversy surrounding the company nearly two years after it faced criticism for mass layoffs branded as “piracy.”
During a session with MPs on the Business and Trade Committee, Hebblethwaite defended the company’s employment practices, insisting that workers were not being exploited and arguing against calls for an independent investigation. However, he acknowledged that he himself could not live on £4.87 per hour, revealing that he earned £508,000 last year, including a £183,000 bonus.
The CEO maintained that P&O Ferries was paying above the international minimum standard and justified its practices by stating that as an international business operating in international waters, they should be governed by international law. He emphasized the company’s desire for a level playing field with competitors.
The controversy stems from actions taken by P&O Ferries two years ago when it fired 786 staff and replaced them with low-paid workers employed by an external crewing agency, sparking widespread condemnation. Despite criticism from ministers, unions, and the public, the Insolvency Service decided not to pursue criminal proceedings against the company, which has been owned by Dubai-based DP World since 2019.
An analysis of payslips by the Guardian and ITV News revealed that some P&O agency workers were earning approximately £4.87 per hour, a figure confirmed by Hebblethwaite.
When pressed by MPs about the morality of the situation, Hebblethwaite did not directly respond to accusations of piracy but admitted he could not live on the wages his employees were receiving.
Labour MP Charlotte Nichols urged Hebblethwaite to commit to an independent investigation, but he resisted, pointing to retention levels of crewing agents as evidence of the company’s fair practices.
Maritime workers employed by overseas agencies on foreign-registered ships in international waters are not subject to UK minimum wage laws, prompting the UK government to promise legislation to close the loophole.
Despite criticism and promises of change, Hebblethwaite’s recent agreement to sign the Government Seafarers’ Charter commits P&O Ferries to pay maritime workers at least the UK minimum wage in British waters. However, concerns remain about potential layoffs and staffing changes.
Trades Union Congress general secretary Paul Nowak criticized Hebblethwaite’s response, expressing disappointment at the lack of remorse for laying off workers and questioning why P&O Ferries faced no sanctions for its actions.
The ongoing controversy underscores broader issues of fair labour practices and the need for regulatory reforms to protect workers in the maritime industry.
