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Union boss warns Starmer’s attacks on Haigh ‘unacceptable’ in P&O investment row

Exclusive: Allies of transport secretary Louise Haigh are rallying to her support after Keir Starmer appeared to criticise her following the decision of P&O Ferry’s owner to cancel plans for £1bn investment in the UK

David Maddox
Political editor
Saturday 12 October 2024 11:39
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Labour leader Sir Keir Starmer with Transport Secretary Louise Haigh (Owen Humphreys/PA)
Labour leader Sir Keir Starmer with Transport Secretary Louise Haigh (Owen Humphreys/PA) (PA Wire)

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Former Trades Union Congress president Matt Wrack has fired a warning shot across the bow of Sir Keir Starmer after his failure to back transport secretary Louise Haigh over comments she made about the owners of P&O Ferries.

Mr Wrack, the general secretary of the Fire Brigades Union who led the negotiations with Labour on the worker’s rights package, warned Sir Keir that criticism of Ms Haigh was “unacceptable” and he praised her for taking on “rogue employers” like P&O’s parent company DP World.

The row exploded after DP World yesterday looked like cancelling its £1bn investment in Thames Gateway following comments on a new workers’ rights package made by Ms Haigh and deputy prime minister Angela Rayner.

DP World will now attend the UK’s investment summit on Monday, despite the row. The expansion of the firm’s London Gateway port, in Essex, is likely to go ahead, with an announcement expected by some in the coming days.

Labour leader Sir Keir Starmer with Transport Secretary Louise Haigh (Owen Humphreys/PA)
Labour leader Sir Keir Starmer with Transport Secretary Louise Haigh (Owen Humphreys/PA) (PA)

DP World’s initial decision to pull out of the summit was blamed on a press release agreed by Downing Street where Ms Haigh described the ferry company as “cowboy operators” over an infamous decision to fire and rehire 800 employees two years ago. The action outraged MPs across parties and helped shape Labour’s new workers package.

The finger was also pointed at Ms Rayner for her comments in the press release for saying: “What we saw with P&O Ferries was an outrageous example of manipulation by an employer and exactly why we’re taking bold action to improve job security in the UK.”

But it was later suggested that it was Ms Haigh’s threat to boycott the company over future behaviour which triggered the investment to be withdrawn.

Sir Keir then publicly slapped down Ms Haigh in an interview on the BBC’s Newscast podcast with political editor Chris Mason and Adam Fleming. When asked about the boycott comment, he said: “Well, look, that’s not the view of the government.”

Matt Wrack, former TUC president, has defended Ms Haigh (Clive Gee/PA)
Matt Wrack, former TUC president, has defended Ms Haigh (Clive Gee/PA) (PA Wire)

The potential loss of the £1bn investment was a huge embarrassment for Sir Keir as he and chancellor Rachel Reeves prepared to host the major investment summit to kickstart UK growth.

However, the briefings against Ms Haigh and attacks on her have led many to claim she is being used as “a scapegoat” and have raised concerns that the minister responsible for many of Labour’s most leftwing policies including nationalising the railways could be sacked.

One ally described the briefings as “disgraceful” and suggested the circle around the prime minister “are running out of friends.”

Now Mr Wrack has waded in to defend Ms Haigh.

He told The Independent: "Louise Haigh has the full support and solidarity of the Fire Brigades Union in setting out clear opposition to P&O and other rogue employers sacking workers and imposing diabolical sweat shop conditions on employees.

"Any backlash or briefing against Labour politicians and trade unionists who challenge or clamp down on firms that have been exploiting and abusing workers in that way is completely unacceptable, wherever it comes from.

"It’s outrageous that DP World is seeking to derail the extension of employment rights that Labour was voted into government to deliver.

"Rogue employers and corporate bullies cannot be allowed to hold a democratically elected government to ransom."

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