After the Storm: P&O Ferries CEO Resigns Amid Backlash from Mass Worker Firings
The CEO of P&O Ferries, Peter Hebblethwaite, has stepped down following widespread backlash from the mass termination of 800 employees in March 2022. This decision to lay off staff and replace them with cheaper agency workers sparked nationwide outrage, leading to protests in cities like Dover, Liverpool, and Hull. Despite claims that the layoffs were not illegal, he admitted to Members of Parliament (MPs) that the actions violated UK employment law.
Commenting on his resignation, P&O Ferries expressed gratitude for Hebblethwaite’s contributions over the last four years, including navigating the challenges of the COVID-19 pandemic and introducing sustainable shipping innovations. However, trade unions, such as the RMT, have welcomed his exit, calling him a “corporate pirate”, and stressing the necessity for reforms in worker protections.
The fallout from the firings has prompted the British government to draft new legislation designed to prevent similar occurrences in the future, specifically an Employment Rights Bill aimed at safeguarding workers from fire and rehire tactics. During a committee hearing, Hebblethwaite acknowledged the need for prior consultations with unions, arguing that no such discussions would have led to acceptance of his plan.
Hebblethwaite’s salary of £500,000 in 2023 stands in stark contrast to the £4.87 an hour earned by some of the agency workers he hired as replacements. While P&O Ferries is not facing criminal prosecution for the mass dismissals, a civil investigation remains ongoing, with the Insolvency Service assessing the case diligently. Hebblethwaite’s previous experience included roles at J Sainsbury, Greene King, and Alliance Unichem before his appointment to the role at P&O Ferries.