A decision to award the owner of P&O Ferries a major public contract has sparked outrage, after the firm sacked 800 workers without notice last year.
DP World has been approved to co-run the Thames Freeport in Essex, as part of Rishi Sunak’s freeports plan.
The Trades Union Congress said it was an “appalling decision”, enabling other employers “to act with impunity”.
The government said the new freeport would “help to grow the economy”.
P&O Ferries sacked hundreds of seafarers in March 2022 and replaced them with foreign agency workers paid less than the minimum wage.
The move sparked outrage and led to calls for P&O’s boss Peter Hebblethwaite to resign.
At the time government called the workers’ treatment “wholly unacceptable”.
A week afterwards, Mr Hebblethwaite admitted to MPs that the decision had broken employment law.
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Freeports aim to create economic activity – like trade, investment and jobs – near shipping ports or airports.
Goods imported into freeports are exempt from taxes, called tariffs, that are normally paid to the government.
Eight freeports have already been set up in England, with more in the pipeline.
The government confirmed that a new freeport for the Thames Estuary region had recently been approved, and would be run by a partnership between DP World, the carmaker Ford and Forth Ports.
Paul Nowak, general secretary of the TUC, said ministers should have “stripped the company of all its public contracts and severed commercial ties” after the P&O sackings.
“But the government has chosen instead to reward DP World with another bumper deal. This is giving a green light to other rogue employers to act with impunity.”
A government spokesperson said the new freeport “will help to grow the economy and level up by unlocking high-quality jobs and much-needed investment into the area.
“This approval means that the freeport will now receive up to £25m from government and potentially hundreds of millions in locally-retained business rates.”
The spokesperson added that the funding will go to local authorities in the freeport area, and will be used “to benefit the entire region”.
