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P&O ‘chose’ to break the law by firing 800 people, company boss says

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P&O Ferries’ chief executive has admitted the ferry operator broke the law by failing to consult employees and unions before sacking 800 people.

Peter Hebblethwaite told MPs there was “absolutely no doubt” P&O broke UK employment laws, as he admitted the ferry firm “chose not to consult” employees and unions.

“We chose not to consult and we are, and will, compensate everybody in full for that,” the chief executive said, as he appeared today before a parliamentary committee.

During today’s session, Hebblethwaite explained that some of the seafarers employed to replace those 800 laid off were £5.50 per hour, as it was allowed under international maritime rules.

Following his admission of guilt, Huw Merriman, one of the committee’s chairmen told Hebblethwaite to “consider his position.”

“It is untenable to come to Parliament to say you have decided to break the law, you have no regrets,” Mr Merriman told BBC Radio 4’s The World At One.

Hebblethwaite also accused transport secretary Grant Shapps of knowing about the layoffs – an accusation which was vehemently denied by the Department for Transport (DfT).

“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.”

The chief executive was called before MPs as doubts over the legality of P&O’s practices kept on mounting after the Dubai-owned shipping company fired 800 of its employees via a pre-recorded video call.

Prime Minister Boris Johnson said he believed P&O had “broken the law” by failing to consult, as he said the government “will be taking action” against the firm.  

Speaking to City A.M yesterday, David Ashmore, a partner at London law firm Reed Smith, said P&O may have come to the conclusion that breaking the law would be cheaper than following the proper processes.

“In certain situations, it may cost less for an organisation to pay the penalty costs than to comply with the legal requirements, but recent events have shown that the reputational damage can be very high,” Ashmore said.