Outrage has been created as a result of the decision to award the owner of P&O Ferries with a significant governmental contract. This comes after the company abruptly let go of 800 employees the previous year.
In accordance with Rishi Sunak’s master plan for freeports, DP World has been given permission to co-manage the Thames Freeport in Essex.
The Trades Union Congress referred to it as an “appalling decision,” saying that it gives other companies the ability to “act with impunity.“
The administration has stated that the new freeport will “assist in the expansion of the economy.”
In March of 2022, P&O Ferries terminated the employment of hundreds of seafarers and replaced them with workers from foreign agencies who were paid less than the minimum wage.
The decision infuriated customers and led to numerous requests for P&O’s boss Peter Hebblethwaite to step down from his position.
A week later, Mr. Hebblethwaite conceded to members of parliament that the decision had been illegal in terms of employment.
The administration at the time referred to the way the workers were treated as “very unacceptable.”
While Grant Shapps was transport secretary at the time, he announced that the legislation would be modified to prevent corporations from immediately sacking employees.
In addition, in the month of May, the government terminated a contract with P&O Ferries; they justified this move by stating that it was a reaction to the firings.
On the other hand, the government revealed on Monday that plans for the Thames Freeport had recently been authorized and that it would be operated by a collaboration between DP World, the automobile manufacturer Ford, and Forth Ports.
The port will receive money from the government totaling £25 million as it works toward its goal of attracting an additional £4.6 billion in public and private investment.
After the sackings at P&O, the general secretary of the TUC, Paul Nowak, stated that ministers should have “stripped the corporation of all its public contracts and severed commercial links.”
“Yet, the government has decided to provide DP World with yet another lucrative business opportunity. This sends a message to other unethical employers that they can behave anyway they choose without fear of repercussions.”
DP World and its partners had made significant investments in port and logistical infrastructure over the course of the past decade, according to a representative for Thames Freeport.
They went on to say that the new port will contribute to the “leveling up of the region” and would result in the creation of more than 21,000 jobs, both directly and indirectly.
According to the administration, the project will result in “much needed” investment in the local area.
The freeport will receive “possibly hundreds of millions in locally-retained business rates,” according to the statement, and local authorities would be in charge of administering the government money. This will be done “to benefit the entire region.”
Freeports are intended to stimulate economic activities such as trade, investment, and job creation in the areas surrounding airports and shipping ports. The normal taxes, known as tariffs that are owed to the government on goods imported into freeports, are not required to be paid on those goods.
In England, eight freeports have already been established, and there are plans for even more of them.
The Thames Freeport will consist of three locations: the London Gateway in Thurrock, the Port of Tilbury at Southend-on-Sea, and Ford’s Dagenham car plant. The London Gateway is located in Thurrock.
