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P&O Ferries says sacking U-turn would cause collapse P&O Ferries says sacking U-turn would cause collapse
(32 minutes later)
The boss of P&O Ferries has hit back at government's calls to reinstate the 800 workers it has sacked, insisting a U-turn would cause the firm's collapse.The boss of P&O Ferries has hit back at government's calls to reinstate the 800 workers it has sacked, insisting a U-turn would cause the firm's collapse.
Peter Hebblethwaite said reversing the cuts, which the firm did not consult unions on, would lead to the loss of an additional 2,200 jobs.Peter Hebblethwaite said reversing the cuts, which the firm did not consult unions on, would lead to the loss of an additional 2,200 jobs.
It comes after the transport secretary gave P&O "one final opportunity" to reemploy staff on their previous wages.It comes after the transport secretary gave P&O "one final opportunity" to reemploy staff on their previous wages.
He said the company had "painstakingly explored all possible alternatives".He said the company had "painstakingly explored all possible alternatives".
In a letter in response to Transport Secretary Grant Shapps, Mr Hebblethwaite said that more than 500 of the sacked crew had accepted and signed settlement agreements, and that he could not change the 31 March deadline for seafarers accepting their redundancy offers. Mr Hebblethwaite said that more than 500 of the sacked crew had accepted and signed settlement agreements, and that he could not change the 31 March deadline for seafarers accepting their redundancy offers.
In a letter in response to Transport Secretary Grant Shapps, Mr Hebblethwaite wrote: "Complying with your requests would deliberately cause the company's collapse, resulting in the irretrievable loss of an additional 2,200 jobs.
"I cannot imagine that you would wish to compel an employer to bring about its downfall, affecting not hundreds but thousands of families."
P&O Ferries' decision to replace the 800 staff it sacked with agency workers earning an average of £5.50 per hour, which is less than the UK minimum wage, has provoked fury from the public, trade unions and politicians.
Today, we have written to the Secretary of State for Transport in response to his latest letter. pic.twitter.com/XbLWSHKgS1
Prime Minister Boris Johnson and Mr Shapps, as well as unions, called for Mr Hebblethwaite's resignation last week, after he admitted his decision to sack 800 workers without consulting unions first broke the law.
However, Mr Hebblethwaite said he would not step down.
He said he felt compelled "to discharge my duties for this historical company" and provide "the effective operation of the trade routes upon which this country depends".
"I will there continue to do my utmost to ensure that this company has a sustainable business for the future."
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P&O Ferries boss Peter Hebblethwaite faced MPs last week
The P&O Ferries boss also defended the company's new crewing model, saying it was common in the industry.
He gave more detail about the model, explaining that it would use one crew instead of two. This meant staff would be paid for the actual time they worked plus holidays, instead of "granted full pay for working 24 weeks a year".
When it sacked staff, P&O said the move was essential for the firm's survival and that it had made a £100m loss year-on-year, which had been covered by its parent company DP World.
In the letter, Mr Hebblethwaite insisted most savings would "arise from the removal of job duplication and the benefits of increased flexibility" - not reducing wages.
The government has urged the company to reconsider and has said it will force ferry operators docking in UK ports to pay the minimum wage.
The need to shift to the new crewing model would not change even if the national minimum wage was applicable, Mr Hebblethwaite said.
"I can further assure you that I am fully cognisant of the reputational cost to the P&O Ferries brand and me personally," he added.