The owner of P&O Ferries has “turned a corner” since 800 workers were made redundant without notice and its £1 billion investment is continuing, a minister told Sky News.
Dubai-based DP World, which owns P&O, was considering withdrawing its announcement of a £1 billion investment in the London Gateway container port after heavy criticism from members of Sir Keir Starmer's cabinet.
Government Minister Peter Kyle confirmed to Sky News the investment is progressing and said that, working with DP World, Labor got the company to sign up to new workers' rights legislation last week.
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Last week, Transport Secretary Louise Haigh described P&O Ferries as suddenly in March 2022, it dismissed 800 seafarers and replaced them with cheap foreign agency workersas an “unfair operator” and called for a consumer boycott.
In an attempt to salvage the major investment, Sir Keir dismissed her comments, saying the government did not share her views, although Downing Street and Foreign Office officials are believed to have tried to mend relations.
They were a success, and DP World chairman Sultan Ahmed bin Sulayem confirmed that he would attend the investment summit where the announcement would be made.
Kyle told Sky News' Breakfast with Kay Burley: 'I think the country was horrified too (when P&O laid off 800 workers) but we've all recovered since then.
“Last week we introduced employment rights legislation which also covers maritime and P&O, and its parent company, DP World, has signed up to this.
“It means we look to the future. DP World is here today.
“The £1 billion investment will continue. I'm very happy about it.”
Just a month ago, in a press release, he defended the government which called P&O Ferries a “rogue company”, claiming that the company has since signed up to workers' rights legislation.
“All you have to do is partner with these companies and take them on a journey,” he said, referring to the former Tory government.
“Let's show that we are a great place to invest, but we expect high standards.”
Read more from Sky News:
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– Have you decided to break the law?
Several Labor MPs were highly critical of P&O Ferries boss Peter Hebblethwaite after he sacked his staff and replaced them with agency workers, and his decision to accept a bonus of £183,000 on top of his £325,000 salary while some of the crew earned less than £5 an hour.
During a parliamentary appearance earlier this year, Labor MP Liam Byrne asked whether he was a “modern-day pirate” who was “robbing staff blind”.
Darren Jones, now chief secretary to the Treasury, asked Hebblethwaite a week after the sackings whether “you got into this mess because you don't know what you're doing, or are you just a shameless criminal?”
Hebblethwaite apologized to the dismissed workers but admitted he had not consulted trade unions beforehand – a legal requirement – because “no union could accept our proposals” and the company “would otherwise have no future”.
