The company’s move earlier this year to terminate 786 crew members without warning and replace them with significantly cheaper agency workers earning less than the minimum wage generated public criticism.
The transport secretary has warned that P&O Ferries will have “no legal choice” but to pay crew members the minimum wage after the company’s owner announced record profits following a controversial mass firing.
Grant Shapps, who issued the ultimatum, stated that the corporation would be compelled to back down if the modification is not made immediately.
He also reiterated his demand that P&O’s CEO, Peter Hebblethwaite, resign.
The company’s move earlier this year to terminate 786 crew members without warning and replace them with significantly cheaper agency workers prompted anger.
Mr. Hebblethwaite later revealed to MPs that the company had violated the law by not consulting on the plan, as no union would have approved the company’s proposals.
The executive, whose yearly remuneration is £325,000, also stated that the average hourly wage of agency employees was £5.50.
While this was less than the UK’s official minimum wage of £9.50 per hour, he maintained that international maritime law justified it.
This week, the Dubai-based owner of the ferry operator, DP World, announced that it had achieved a profit of £736 million (£884 million) in the six months leading up to the end of June.
In response, Mr. Shapps stated: “I believe that their CEO should quit. He is still under investigation, which is very appropriate given his behavior.”
Legislation presently on consideration in Parliament aims to ensure that seamen on vessels that often visit British ports are paid the minimum wage.
Those who do not comply will be penalized or denied entrance.
Mr. Shapps said: “P&O will be required to undo their actions here. They will soon have no choice but to obey the law.
They should recognize this immediately and act accordingly.
In addition to criticism from unions, DP World was criticized for its record-breaking profits.
The secretary general of the Trades Union Congress, Frances O’Grady, stated: “These eye-popping earnings are the result of P&O unlawfully firing hundreds of devoted employees.
They are an affront to basic decency.
P&O Ferries declined to comment on the matter.
