Criminal proceedings launched against P&O over sackings

Criminal and civil investigations have been launched into the decision by P&O Ferries to sack nearly 800 workers without notice, the Insolvency Service said on Friday.

The move caused outrage, which only increased when the company hired new staff on less than the UK minimum wage of £9.50 an hour.

“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,” the Insolvency Service said in a statement.

P&O Ferries chief executive Peter Hebblethwaite last week admitted to a joint hearing of parliament’s business and transport committees that his company broke the law by not consulting with trade unions before sacking workers.

Transport Secretary Grant Shapps on Wednesday, unveiled a package of measures in response to the sackings, including 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, and asked the Insolvency Service to consider disqualifying Hebblethwaite from acting as a company director.

However, Shapps' plans were derided by port operators as "unworkable".

Richard Ballantyne, head of the British Ports Association policing rules on wage levels would place ports in a "difficult legal predicament, especially before any legislation is in place".

"Ports are not the competent authorities to enforce rules on employee salaries or working conditions in the shipping industry. We are concerned that the government is rushing to find a solution without considering the wider implications in the maritime sector."

Most P&O Ferries sailings have yet to resume. The Maritime and Coastguard Agency has detained two of its ferries, the Pride of Kent, which sails Dover to Calais, and the European Causeway, held in Larne, which normally operates the Northern Ireland to Scotland crossing.

Inspectors had concerns about the replacement crew’s readiness to sail the ship. P&O has accused the agency of acting with “unprecedented levels of rigour”.