LONDON (AP) — The head of a ferry operator at the center of a bitter labor dispute stunned U.K. lawmakers Thursday when he acknowledged that the company chose to ignore the law and labor contracts when it fired 786 workers without consulting with them in advance.
P&O Ferries Chief Executive Peter Hebblethwaite said while under intense questioning from members of a parliamentary committee that the company decided not to discuss its plans with workers because it knew labor unions would never agree. Lawmakers repeatedly characterized the move as a willful decision to break the law.
The company, which operates in Britain and is owned by a subsidiary of Dubai-based DP World, dismissed the workers as part of a cost-cutting plan it says was necessary to save the business and 2,200 other jobs. The fired seafarers are to be replaced by cheaper staff provided by a third-party crew provider.
“There is absolutely no doubt that we we were required to consult with the unions,” Hebblethwaite said. “We chose not to consult and we … will compensate everybody in full for that.”
The cuts — which came after P&O received millions of pounds of British government aid during the COVID-19 pandemic — have caused outrage and sparked protests by trade unions at U.K. ports. P&O canceled all services between Britain, Ireland and continental Europe after last week’s announcement, disrupting the movement of travelers and goods. Many routes are still shut a week later.
Unions representing the dismissed workers say P&O is paying new crew members provided by Malta-based International Ferry Management Ltd. the equivalent of 1.81 pounds ($2.38) an hour. Britain’s current minimum wage is 8.91 pounds.
Trade unions have long objected to “fire and rehire” plans in which companies cut costs...
