The furore over P&O Ferries decision to fire 786 employees on 17 March has reached a new stage with a UK government agency confirming it has launched criminal and civil investigations.
UK business and energy secretary Kwasi Kwarteng Tweeted a document revealing the enquiry on Friday.
“Following its enquiries, I can confirm that the Insolvency Service has initiated both formal criminal and civil investigations into the circumstances surrounding the recent redundancies made by P&O Ferries,” said Dean Beale, inspector general and chief executive, in the letter.
Beale addressed the message to Kwarteng after the business secretary had requested the enquiry “to determine whether the law has been complied with and consider prompt and appropriate action where it has not”.
Bealed added that it would be inappropriate to make further comment now, but that there would be an update in due course.
P&O Ferries has been in a media storm since axing the workers with no notice in order to bring in cheaper agency workers.
Most recently, the DP World-owned ropax company has rejected a call from UK transport minister Grant Shapps to reinstate the crews.
Chief executive Peter Hebblethwaite has claimed recalls would cause the collapse of the company as the layoffs were the only way to keep the loss-making outfit afloat.
“Complying with your request would deliberately cause the company’s collapse, resulting in the irretrievable loss of an additional 2,200 jobs,” he told Shapps.
“I cannot imagine that you would wish to compel an employer to bring about its downfall, affecting not hundreds but thousands of families.”
The National Union of Rail, Maritime and Transport Workers’ general secretary, Mick Lynch. called the letter a “direct challenge to the legal framework and government authority in Britain”.
“The diabolical arrogance that is on display by P&O Ferries is equivalent to highway banditry and must be opposed,” he said.
“This whole rotten fiasco shows why the government must step in, take over the running of P&O, and reinstate all 800 sacked staff with no loss of pay.”
The Insolvency Service is a government agency whose brief includes policing misconduct and "sharp practice" by company directors.
