Criminal and civil investigations have been launched into the decision by a Dubai-owned ferry company to sack nearly 800 British workers without notice.
P&O Ferries, which was bought by Dubai-based logistics giant DP World in 2019, sparked outrage on March 17 when it fired 800 seafarers without any prior notice and replaced them with cheaper agency workers, citing £100 million ($132 million) year-on-year loss.
UK Business Secretary Kwasi Kwarteng said on April 1 that the Insolvency Service has started “formal criminal and civil investigations.”
The Insolvency Service said in a statement: “Following its inquiries, the Insolvency Service has commenced formal criminal and civil investigations into the circumstances surrounding the recent redundancies made by P&O Ferries.
“As these are ongoing investigations, no further comment or information can be provided at this time.”
At a parliamentary hearing last week, P&O Ferries Chief Executive Peter Hebblethwaite acknowledged that the company knowingly broke the law by deciding not to consult the unions because “no union could accept it.”
Hebblethwaite said that the new crews are being paid an average hourly wage of £5.50 ($7.25), lower than the UK’s minimum wage of £8.91 ($11.74) apart from on domestic routes, but said it is allowed under international maritime rules.
On March 28, Transport Secretary Grant Shapps issued an ultimatum to P&O Ferries, saying it has “one further opportunity” to reinstate the 800 British workers who were fired without notice.
But the firm rejected the minister’s demand of rehiring the workers, saying it “ignores the situation’s fundamental and factual realties.”
Shapps unveiled a package of measures on March 30, including plans to create “minimum wage corridors” on ferry routes between the UK and other countries.
He also urged UK ports to refuse access to boats carrying seafarers paid below the minimum wage, and asked the Insolvency Service to consider disqualifying Hebblethwaite from acting as a company director.
Shapps on Friday welcomed the decision to put P&O Ferries under criminal investigation.
He said: “I have called for the P&O chief executive to step down after he shamelessly told Parliament he had knowingly broken the law, and it is right the company is held to account for its actions.”
