Criminal and civil investigations have today been launched into alleged breaches of the law after P&O Ferries sacked 800 workers without any notice. The law requires firms to notify the Insolvency Service 30 or 45 days before making large UK redundancies.
While P&O Ferries did not notify the regulator, they claim they did not break the law due to its ferries being registered to offshore countries. However, Chief Executive Peter Hebblethwaite admitted they were required to consult the unions, but chose not to do so, reports The Mirror.
He said “there’s absolutely no doubt we were required to consult with the unions," adding: "We chose not to do so." He claimed the sackings of 800 people were necessary to let P&O continue operating - brazenly telling MPs: "I would make the same decision again, I'm afraid."
Business Secretary Kwasi Kwarteng had written to the Insolvency Service asking it to review the case. He 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 added: "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."
It comes days after Mr Shapps was slammed for not going further against the firm. Mr Shapps announced on Wednesday that UK ports will get new powers to block ferries from docking if they do not pay their crew the minimum wage.
"This will send a clear message to the maritime industry: we will not allow this to happen again," he told the Commons. But the plans were criticised, with unions saying ministers had not gone far enough and the British Ports Association pointing out ports cannot enforce wage rules.
Mr Shapps also outlined plans to close minimum wage loopholes and clampdown on fire and rehire practices. He asked the Insolvency Service to consider disqualifying P&O chief executive Peter Hebblethwaite from acting as a company director.
TUC general secretary Frances O’Grady said on Wednesday: “This plan has gaping holes. It won’t deliver a fair outcome for the 800 sacked workers, and it won’t stop another P&O-style scandal. Closing the legal loophole which lets companies pay less than the minimum wage is a start, but we need much more from the Government."
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. As these are ongoing investigations, no further comment or information can be provided at this time."
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