DP World, the owner of P&O, has paused a £1bn expansion of one of the UK’s largest container ports following criticism from government officials over the ferry company’s employment tactics.
The Dubai-based firm was set to unveil the investment at London Gateway port during a summit next week organized by Prime Minister Sir Keir Starmer.
However, DP World’s CEO, Sultan Ahmed bin Sulayem, has decided not to participate in the event after Transport Secretary Louise Haigh and Deputy Prime Minister Angela Rayner labelled P&O as “unscrupulous” and “exploitative” earlier this week.
This is connected to the government’s initiative to enhance workers’ rights, including a commitment to eliminate a “legal loophole” that P&O is accused of using to dismiss nearly 800 employees in 2022.
A spokesman for DP World confirmed that the investment is being reconsidered, according to a report by Bloomberg News.
This development is a setback to Sir Keir’s efforts to portray the UK as business-friendly, particularly as he seeks to stimulate investment at an upcoming summit.
A government official indicated that discussions with DP World regarding this issue are ongoing.
Requests for comment from representatives of Ms. Haigh and Ms. Rayner went unanswered.
