The government has severed ties with troubled P&O Ferries after the company laid off nearly 800 workers without warning.
In the wake of the mass layoffs in March, the Home Office said a contract between the UK border force and P&O Ferries would be canceled “with immediate effect”.
An Interior Ministry spokesman said: “In response to P&O Ferries’ unacceptable behavior, Border Force has terminated its agreement with P&O to provide contingency travel services to juxtaposed ports with immediate effect.”
It comes after the Department of Transportation also ruled out an agreement with the ferry company following a review of the government’s involvement with the conflicting company.
“We are reforming maritime law to prevent companies from exploiting legal loopholes and protecting workers’ rights,” Transport Secretary Grant Shapps tweeted.
P&O has new crews on all its ships, although many charges are paid below the UK minimum wage, a problem the government has pledged to address through new legislation.
The layoffs had led to widespread condemnation and a call for the resignation of P&O chief Peter Hebblethwaite.
After the move, Shapps told Hebblethwaite that his reputation was “in pieces” and that his “position as CEO and, in fact, as a business director, has become unsustainable.”
The chief executive has since apologized, but has continued his work.
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0:32 P&O chief: “Difficult but necessary decision”
His company is currently under criminal and civil investigation by the government’s business conduct monitoring body.
Business Secretary Kwasi Kwarteng confirmed in April that the Insolvency Service – which is part of his department – had decided to launch a formal investigation into “the circumstances surrounding the recent layoffs by P&O Ferries”.
Subsequently, P&O ships have failed numerous security checks, and some are unable to sail.
In early May, the company was told that the Pride of Kent could resume crossings between Dover and Calais after passing a security inspection on the fourth attempt.