The head of P&O Ferries was scrutinised by MPs discussing wages, practices, and decisions affecting the seafarers.
- Peter Hebblethwaite faced accusations of poor employment practices and ‘modern-day piracy’ following mass redundancies two years ago.
- His acceptance of a substantial bonus amidst low wages for some staff members was heavily criticised.
- Acknowledging the need for past layoffs, Hebblethwaite maintained that these actions secured jobs for others.
- Despite the controversy, Hebblethwaite insists the company offers satisfactory pay and conditions for its international staff.
During a grilling by MPs, the P&O Ferries chief executive, Peter Hebblethwaite, was accused of being a ‘modern-day pirate’, an accusation stemming from the company’s decision two years prior to lay off nearly 800 seafarers, replacing them with agency staff. At the core of the controversy is the juxtaposition of executive bonuses with the wages of some crew members, reportedly less than £5 an hour.
Hebblethwaite addressed the redundancies, saying they were crucial to the survival of the company, enabling the preservation of 2,000 jobs. However, his admission that some staff received as little as £4.87 an hour led to questions, particularly from Labour MP Liam Byrne, about the feasibility of living on such wages. Hebblethwaite conceded that he could not live on this amount but argued the company paid above the international seafaring wage.
Emphasising P&O’s compliance with legal standards, Hebblethwaite asserted that the company’s wage practices were ‘considerably above’ international benchmarks. He framed the company’s recruitment strategy as effective, suggesting no issues with attracting and retaining staff. Furthermore, he highlighted the welfare provisions available to seafarers onboard, claiming they are unmatched.
Despite the legal backing for past layoffs, Hebblethwaite expressed remorse over the impact on the affected seafarers and acknowledged the controversy surrounding his acceptance of a £183,000 bonus. He reflected on this decision, understanding that not everyone would make the same choice, yet stood by it as his own.
The Insolvency Service’s investigation cleared the company of criminal wrongdoing in August 2022, and Hebblethwaite expressed confidence in a similar outcome for a current government inquiry. Throughout, he maintained that all actions were taken following comprehensive legal advice, though he voiced regret over the upheaval caused to the seafarers and their families.
Although the past decisions have been legally justified, their moral and ethical implications continue to provoke significant debate.
