The government awarded a major public contract to the owner of P&O Ferries, despite the fact that the company laid off 800 employees without notice last year.
The Trades Union Congress (TUC) has condemned the decision to co-manage the Thames Freeport in Essex as part of Rishi Sunak’s freeports plan, calling it a “appalling decision” that allows other employers to “act with impunity.”
Freeports are economic zones designed to generate economic activity, such as investment and employment, near seaports or airports. They are exempt from paying government-imposed taxes or tariffs.
The decision to award the contract to the owner of P&O Ferries has been met with outrage, as the company laid off hundreds of seafarers in March 2022 and replaced them with agency employees paid less than the minimum wage. This was viewed by many as a violation of employment law, leading to calls for the resignation of P&O’s CEO Peter Hebblethwaite.
The TUC demanded that the company be stripped of all its public contracts and commercial ties, but the government instead awarded DP World with another contract. Paul Nowak, general secretary of the TUC, stated that this “gives other unscrupulous employers permission to act with impunity.”
The new freeport will receive up to £25 million from the government and potentially hundreds of millions in business rates, according to a government spokesperson. The new freeport will “help to grow the economy and level up by releasing high-quality jobs and much-needed investment in the area,” the spokesperson added.
However, many are dissatisfied with the decision to award a major public contract to the owner of P&O Ferries, despite their controversial decision to lay off hundreds of employees last year. The BBC has requested comment from DP World.
