Criminal and civil investigations were launched today into the decision by P&O Ferries to sack nearly 800 workers following mass criticism of the company for making the seafarers redundant without notice.
Business Secretary Kwasi Kwarteng said this afternoon that the Insolvency Service has started ‘formal criminal and civil investigations’ and that he will be ‘follow this matter closely’ along with Transport Secretary Grant Shapps.
The probe comes after P&O Ferries admitted to breaking the law in the manner in which it terminated staff on March 17 to hire cheaper agency workers, a move that has caused a major backlash from politicians and workers.
P&O Ferries chief executive Peter Hebblethwaite told a joint hearing of the Commons’ business and transport committees that his company broke the law by not consulting with trade unions before sacking workers.
The Insolvency Service said: ‘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.’
Two P&O ferries remain at the Port of Dover in Kent today after the sacking of 800 seafarers by the company without notice
Transport Secretary Grant Shapps (left) has already asked the Insolvency Service to consider disqualifying P&O Ferries chief executive Peter Hebblethwaite (right), describing his behaviour as ‘outrageous’
The Inspector General of the Insolvency Service confirmed the investigations in a letter to the Business Secretary. In the letter, dated April 1 and posted on Twitter by Kwasi Kwarteng, Dean Beale wrote: ‘As you know, on 17 March 2022, a total of 786 employees were dismissed across three companies under the P&O Ferries banner.
‘In your letter you asked the Insolvency Service to undertake an urgent and thorough enquiry into the circumstances surrounding the redundancies made by P&O Ferries, to determine whether the law has been complied with and consider prompt and appropriate action where it has not.
The Inspector General of the Insolvency Service confirmed the investigations in a letter to the Business Secretary today
‘Following its enquiries, I can confirm that the Insolvency Service has initiated both formal criminal and civil investigations into the circumstances surrounding the recent redundancies made by P&O Ferries.
‘We will publish a short statement today confirming the above position and as you will appreciate, whilst these investigations are being progressed. It would not be appropriate for me to make further comment at this time. I will provide a further update in due course.’
Mr Kwarteng tweeted: ‘Following my letter to the Insolvency Service last week, formal criminal and civil investigations into P&O Ferries have now commenced. Transport Secretary Grant Shapps and I will continue to follow this matter closely as the investigations progress.’
And Mr Shapps tweeted: ‘The Insolvency Service has reviewed P&O Ferries’ actions and placed it under criminal investigation for its actions. Peter Hebblethwaite stood before MPs and admitted to breaking the law, and his actions must now be scrutinised.’
He later said in a statement: ‘I welcome the Insolvency Service’s decision to put P&O Ferries under criminal investigation.
Union leaders protest against the dismissal of P&O workers at the terminal in Cairnryan, Dumfries and Galloway, on March 23
Two P&O ferries remain at the Port of Dover in Kent today as freight lorries queue to check-in
‘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.
‘The nine-point plan I announced this week will strengthen seafarers’ employment rights, and my department will fully co-operate with the review to ensure maritime workers are protected from anything like this happening again.’
Mr Shapps has already asked the Insolvency Service to consider disqualifying Mr Hebblethwaite, describing his behaviour as ‘outrageous’.
And P&O Ferries rejected a request from the Government to rehire the employees it had fired, saying that doing so would cause the company to collapse.
Mr Hebblethwaite insisted the company would not have survived without taking the action it did. He told MPs the average pay of the agency crew is £5.50 per hour.
That is below the UK’s minimum wage but Mr Hebblethwaite said this is permitted under international maritime laws.
Mr Shapps, whose officials have detained two of P&O operated ferries citing safety concerns since the job cuts, has also said a package of measures would be introduced to block ferry groups seeking to pay workers less than the minimum wage.
They included 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.
Rail, Maritime and Transport union general secretary Mick Lynch said today: ‘There are clear grounds to detain P&O’s ships whilst criminal and civil investigations are completed.
‘Justice must be delivered for our members in the face of continued corporate hostility.’
P&O Ferries is owned by Dubai-based logistics group DP World. The Insolvency Service is a UK Government agency whose remit includes tackling misconduct and ‘sharp practice’ by company directors.