Peter Hebblethwaite told a committee of MPs he had chosen the on-the-spot redundancies to save the business and had neglected to consult “because no union could accept the proposal”.
He was asked by MP Darren Jones: “Are you in this mess because you don’t know what you’re doing or are you just a shameless criminal?”
Hebblethwaite acknowledged a deliberate decision had been taken in breach of employment law.
“There is absolutely no doubt we were required to consult with unions, we chose not to do that,” he said.
Hebblethwaite, who is paid £325,000 plus bonuses, said sacked workers would receive an “enhanced” deal to compensate, with a minimum £15,000 settlement. Around 40 long-serving staff will receive more than £100,000. Staff were told to sign confidentiality agreements or forfeit payments.
He admitted rates of pay for foreign workers brought in to run ferries were below minimum wage but acknowledged UK minimum rates would be applied on the Scotland-Northern Ireland crossing, where P&O Ferries could not avoid UK law.
Hebblethwaite agreed he could not live on these pay rates but said they were in line with international minimums. “It is the operating model that the vast majority of operators work to across the globe,” he said.
“The reaction to this has been extremely strong and we regret that, but there is no P&O without the changes we needed to make.” He added: “I would make this decision again, I’m afraid.”
He said there was “no question the brand has taken a hit”, with bookings on Dover-Calais particularly affected; “but we know we have a business we can rebuild and grow”.
Hebblethwaite also admitted he had not personally signed off a safety risk assessment required to restart operations. MP Chris Loder told him: “I cannot believe you can retain your position.”
P&O Ferries is owned by Dubai-based DP World. Its chief operations officer Jesper Kristensen said it had played no part in the process. “The P&O board will have taken the business decision it had to take,” he said.
The committee heard DP World owed a maritime pension fund £146 million but had spent £147 million sponsoring a golf tournament and had paid shareholders $376 million in the last two years.
