A government minister who urged people to boycott P&O Ferries has left a crucial £1bn deal under threat.
Transport Secretary Louise Haigh said the company were a “cowboy operator”, telling ITV News on Wednesday: “We’re cracking down on the way they treated employees, and we want to see them mirror the standards of other operators that come in and out of Great Britain’s waters.”
In opposition, Ms Haigh played a key role in bringing an end to P&O Ferries fire and hire practices, with her criticism leading to an admission by company officials that the company had broken the law.
But as Labour stumbles across its 100 day milestone in government, ministers are starting to lean that criticism has consequences.
P&O Ferries’ parent company, DP World, who had been set to deal a £1 billion deal to expand its London Gateway container port on Monday, have now signalled the deal is in jeopardy, and may postpone a £1bn investment announcement following the comments made by Haigh.
An international investment Summit marred in controversy
The shelving of the deal comes at a crucial time to the government, who has made growth and foreign direct investment central to Labour’s policy plans. Wit this in mind, Sir Keir Starmer has publicly rebuked one of his ministers for the first time since becoming prime minister.
Asked if Ms Haigh had been wrong to describe the company as cowboys and suggest a boycott, he said: “Well, look, that’s not the view of the government.”
The announcement was to be part of the new Labour government’s international investment summit, with 300 industry leaders embarking on London to catalyse investment in the UK.
The conference was due to attract big names like Eric Schmidt, the former chief executive of Google, Larry Fink, the chief executive of BlackRock and Ruth Porat, the chief executive of the Canadian investment firm Brookfield Asset Management.
Sultan Ahmed bin Sulayem will still attend the summit despite Ms Haigh, according to the Financial Times, at least one other billionaire investor who had been due to attend has pulled out, and that others are reconsidering their options.
It comes amid further criticism that the summit is ill-timed as it comes two weeks before the budget when key government policies are still be unknown. Experts say many investors do not want to commit to any deals until they know for certain what the government’s tax and spend plans will be, adding to Stramer’s growing list of concerns with the conference due to start on Monday.
P&O Ferries branded a “rogue operator”
DP World were criticised for paying a £270 million dividend to shareholders at the end of April 2020, before changing employment terms and conditions for 919 crew across 10 of its vessels owned by its subsidiary, P&O Ferries
Crew on board the ferry, where given “Advanced Notification of Redundancies”, with the letter stating that “dismissal and re-engagement may be considered if agreement cannot be reached on new terms”.
Former prime minister Boris Johnson, accused P&O Ferries of breaking the law and said that it risked unlimited fine, before changing his position on the illegality of the practice.
The uncertainty stemmed from gaps in legislation, as a change in European law in 2018, which was adopted by the UK, meant companies no longer needed to inform the UK government about redundancy rounds of more than 100 people.
In her role as shadow transport secretary, Ms Haigh had been one of the most vocal opponents of fire-and-rehire practices of the world’s largest cruise operator.
In 2022, Ms Haigh told i: “The news that fire and rehire is now no longer on the table for these workers is welcome.
“However, it is scandalous that the Conservatives allow this shameful practice to continue. Every second it remains legal, workers will have this threat hanging over them.”
She added: Labour will end the scourge of fire and rehire by banning the practice once and for all.”
P&O Ferries boss Peter Hebblethwaite later admitted the company broke the law, the then-secretary of state for transport, Grant Shapps said the Government would “send a clear message to the maritime industry that we will not allow this to happen again”.
Meanwhile, Labour’s employment rights bill sets out how fire and rehire practices will be banned.
Unions have claimed the measures have been watered down, with businesses at risk of complete collapse may be able to alter terms and conditions if it is the difference between going bust.
DP World and P&O Ferries have been contacted for comment.
A Government spokesperson told i: “We continue to work closely with DP World which has already delivered significant investment in the London Gateway and Southampton ports, to help deliver for the UK economy. Next week’s International Investment Summit will bring together hundreds of global firms to show Britain is open for business.”
