In a letter to Hebblethwaite on Monday (28 March), Shapps said he would give the firm one final opportunity to reverse its 18 March decision to dismiss 786 UK seafarers without notification or consultation.
Appearing before a government select committee hearing last week, Hebblethwaite admitted the firm acted knowing its actions were illegal, stressing its decision to not to consult staff or unions was taken as it did not believe there was any merit in consulting on something P&O Ferries knew would be unanimously opposed.
Shapps said he would give Hebblethwaite and P&O Ferries one final opportunity to reinstate every sacked member of staff on their previous contracts and salaries, adding the government would otherwise force the issue through new legislation requiring ferry firms to pay minimum wage.
P&O Ferries said it took the decision to secure the long-term viability of the firm, stressing that if it didn’t cut costs, it would likely go to the wall. Its decision, though, to sack its UK seafarers and attempt to replace them with foreign labour has been unanimously condemned.
Shapps said the company’s actions had left the reputations of both P&O Ferries and Hebblethwaite himself "in tatters", adding Hebblethwaite’s correspondence since 18 March had been "wholly unsatisfactory".
In his letter, Shapps remarked on Hebblethwaite’s appearance before a joint hearing last week of parliament’s transport and business select committees: "Your appearance, during which you brazenly admitted to breaking employment law, demonstrated beyond doubt your contempt for workers who have given years of service to your company."
Shapps said beyond reviewing P&O Ferries’ contracts with government, he had asked the Insolvency Service to investigate Hebblethwaite’s actions – and would go further by strengthening legislation to ensure seafarers are protected against the kind of action taken by P&O Ferries.
"Through that package, we intend to block the outcome that P&O Ferries has pursued, including paying workers less than the minimum wage," said Shapps. "With the above in mind, you have one further opportunity to reverse this decision by immediately offering all 800 workers their jobs back on their previous terms, conditions and wages – should they indeed want them back at this stage."
‘Disgust’
The transport secretary urged P&O Ferries and Hebblethwaite to drop its 31 March deadline for seafarers to respond to the firm’s redundancy offer. "Given we intend to ensure such outcomes are prevented by laws – which we will ensure that you cannot simply choose to ignore – I believe you will be left with little choice but to reverse your decision in any case," said Shapps.
He added: "A reversal at this point may also go some way in starting to repair your firm’s reputation with the public, many of whom will show their own disgust at your treatment of workers by simply choosing an alternative operator.
"P&O Ferries has a long and proud history. We are keen to help you rebuild the trust that has been lost. This government will not stand by while the requirement to treat seafarers with due respect and fairness is brazenly ignored."
