Top Man P&O repeats: lay off 800 people or the whole company goes bankrupt

The shipping company P&O cannot reverse the decision to immediately lay off 800 employees, as the British government would like. This would irrevocably lead to the demise of the company, writes CEO Hebblethwaite in a letter to UK Transport Minister Shapps.

“Granting your request would mean the intentional collapse of the business, resulting in the loss of an additional 2,200 jobs,” says the CEO† “I can’t imagine anyone would expect that from an employer.”

He said something similar to a parliamentary committee last week. There, he also admitted that his company had broken the law by not first submitting the decision to the unions.

Below minimum wage

British politicians and trade unions were therefore furious when the shipping company a week and a half ago signaled to lay off 800 employees by video message and with immediate effect. The massive layoff would be necessary to restore the company’s financial health in one fell swoop.

Instead of permanent staff, P&O wants to hire temporary overseas staff which could push it below the UK minimum wage. From next month it will be £9.50 an hour (around €11.25), while temps earn just £5.50. According to the company, it works the same way in other parts of the world.

The question is whether P&O’s plan will succeed. Prime Minister Johnson’s government wants to force shipowners who call at UK ports to pay the UK minimum wage to their staff. New legislation should regulate this.

The ferry service operates between Rotterdam and Hull and between Dover and Calais.