P&O Ferries Investment Moves Forward Amid Controversy Over Mass Staff Layoffs and CEO’s Legal Breach

The owner of P&O Ferries has made significant progress since the dismissal of 800 employees, according to a government official, with plans for a £1 billion investment moving forward. The company's chief executive acknowledged a legal violation for failing to engage with unions prior to abruptly firing 800 workers and hiring overseas agency employees last year.

Political correspondent @alixculbertson

Monday, October 14, 2024, 9:

A government official informed Sky News that P&O Ferries' parent company has made significant progress following the unexpected dismissal of 800 employees, and is proceeding with its £1 billion investment plan.

The Dubai-based firm DP World, the owner of P&O, debated delaying the declaration of a £1 billion investment in its London Gateway container port following significant backlash from members of Sir Keir Starmer's cabinet.

Government official Peter Kyle informed Sky News that the investment plans will proceed and mentioned that through discussions with DP World, Labour has successfully persuaded the company to agree to the newly implemented labor rights legislation last week.

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Last week, Transport Secretary Louise Haigh labeled P&O Ferries, which abruptly dismissed 800 of its crew members in March 2022 and substituted them with lower-paid foreign agency staff, as a "rogue operator" and urged consumers to boycott the company.

Sir Keir rejected her remarks in an effort to protect the significant investment, stating that her opinions were not echoed by the government. Meanwhile, it is believed that officials from Downing Street and the Foreign Office have been working to mend ties.

DP World's chairman, Sultan Ahmed bin Sulayem, confirmed his attendance at the investment summit where the announcement is expected to be made, indicating their success.

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On Sky News' "Breakfast with Kay Burley," Mr. Kyle expressed, "I believe the nation was equally shocked [by P&O's dismissal of 800 employees], yet we have all moved past that point since then."

"Only a week ago, we launched new legislation aimed at enhancing workers' rights, covering sectors including maritime operations. Both P&O and its parent company, DP World, have agreed to adhere to these regulations."

"This indicates our focus is on what's ahead. DP World is present today."

"We are proceeding with the £1 billion investment, and I am truly delighted about it."

In a statement issued last month, he supported the government's labeling of P&O Ferries as a "rogue company," noting that they have since agreed to adhere to the workers' rights laws.

"He emphasized the importance of collaborating with these firms and guiding them forward," he remarked, subtly criticizing the previous Conservative administration.

"Prove that we are an excellent investment opportunity, though we do hold high expectations."

Explore further on Sky News: Officials engaged in discussions with DP World to secure investments. A potential increase in employer national insurance is hinted at by a minister.

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Numerous Labour Members of Parliament expressed strong disapproval of P&O Ferries executive Peter Hebblethwaite following his dismissal of employees and subsequent hiring of agency workers. They also criticized his acceptance of a £183,000 bonus on top of his £325,000 salary, particularly as some of the crew were making less than £5 per hour.

In a session with members of parliament earlier this year, Labour MP Liam Byrne inquired whether he was akin to a "contemporary pirate" plundering his employees egregiously.

Darren Jones, who has recently been appointed as the chief secretary to the Treasury, questioned Mr. Hebblethwaite about the layoffs that occurred last week, inquiring whether his involvement in the debacle stemmed from ignorance or if he was simply engaging in criminal activities without remorse.

Mr. Hebblethwaite expressed regret to the employees he laid off, yet he acknowledged that he failed to discuss the matter with unions beforehand—a mandatory legal step—stating that "no union would agree to our plans," and that without such actions, the company had "no future."

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