Peter Hebblethwaite, the chief executive of P&O Ferries, who gained notoriety as "Britain’s most hated boss" after dismissing nearly 800 employees in 2022, is set to resign from his position. The decision comes after significant public backlash and parliamentary scrutiny following the controversial replacement of staff with lower-paid agency workers.
Key Takeaways
- P&O Ferries CEO Peter Hebblethwaite is resigning.
- His departure follows the 2022 sacking of 786 staff.
- The company faced accusations of operating like "pirates of the high sea."
- Hebblethwaite cited saving the company from bankruptcy as justification for the sackings.
- The company has faced issues with late annual accounts.
- Hebblethwaite received a significant pay rise, including a bonus, in the year following the dismissals.
The Controversial Sackings
In March 2022, P&O Ferries made the abrupt decision to dismiss 786 of its UK-based seafarers, replacing them with agency staff who were reportedly paid below the UK minimum wage. This move sparked widespread condemnation, with the company being accused of operating unethically. During a parliamentary hearing, Hebblethwaite faced intense questioning regarding the legality and morality of the actions.
Justification and Scrutiny
Hebblethwaite consistently maintained that the sackings were a necessary measure to prevent the ferry group from collapsing. Despite the controversy, no criminal charges were brought against the company. P&O Ferries, a subsidiary of DP World, stated that Hebblethwaite’s resignation is to allow him more time with his family, expressing gratitude for his four years of service and highlighting his role in navigating the company through the Covid-19 pandemic and initiating sustainability efforts.
Financial and Governance Issues
The company has also faced challenges with its financial reporting, twice failing to publish its annual accounts on time, an offence technically considered criminal. The 2022 accounts, published nearly 11 months late, revealed that P&O Ferries spent over £47 million on the redundancies. In the financial year following the sackings, Hebblethwaite’s remuneration increased significantly, reaching £683,000, which included a £183,000 bonus. This pay increase stood in stark contrast to the wages of the agency seafarers, some of whom were found to be earning as little as £4.87 per hour, a rate below the UK minimum wage. While the company was legally able to pay these rates due to maritime employment laws concerning overseas agencies and foreign-registered ships, new legislation in the UK and France is understood to have led to increased pay rates on P&O vessels since.
Company Performance
In its latest accounts, P&O Ferries reported a pre-tax loss of £91.4 million in 2023, a notable improvement from the £249.4 million loss in 2022. The company transported 4.6 million passengers in 2023, a decrease of 45% compared to 2018 figures.
