Home Business Matter P&O to pay £36.5m in compensation to 800 sacked employees

P&O to pay £36.5m in compensation to 800 sacked employees

P&O to pay £36.5m in compensation to 800 sacked employees

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Ferry operator P&O has revealed it’s paying £36.5m to cowl compensation for the 800 seafarers it sacked with out warning.

It’s understood workers who settle for the payouts will probably be required to signal non-disclosure agreements requiring them to not disparage the corporate.

The transport secretary, Grant Shapps, informed the Home of Commons on Monday P&O was utilizing the agreements to “maintain the workers quiet”, and accused the corporate of performing in a “shameful and unacceptable method”.

The corporate mentioned it believed the settlement can be the “largest compensation package deal within the British marine sector”.

The payouts being provided to dismissed workers are linked to their size of service with the corporate, and in some instances employees will probably be paid greater than £170,000.

P&O Ferries mentioned 575 out of the 786 seafarers dismissed by the corporate are in discussions over the severance affords, with some receiving compensation equal to 91 weeks’ pay.

It mentioned greater than 40 employees will obtain greater than £100,000, whereas no employee will obtain lower than £15,000.

P&O is providing two-and-a-half weeks’ wage for annually of employment, in addition to as much as 13 weeks’ wage in lieu of discover, and an extra 13 weeks’ wage due to the absence of a session interval. It mentioned the compensation package deal was the premise for affords made to employees on the time of dismissal.

The announcement got here as the federal government warned P&O Ferries may face prosecution over the sackings, whereas Shapps mentioned ministers had been reviewing all authorities contracts and coping with the ferry operator and guardian firm DP World.

A spokesperson for P&O Ferries mentioned: “This has been an extremely powerful resolution for the enterprise: to make this selection or face taking the corporate into administration. This may have meant the lack of 3,000 jobs and the tip of P&O Ferries.”

The corporate mentioned it had taken the “laborious selection” to dismiss employees to ensure the “future viability of P&O Ferries” and keep away from large-scale and prolonged disruption to commerce.

A number of P&O providers together with sailings on the Dover to Calais route stay suspended, whereas additional protests are deliberate at ports across the UK for the approaching days.

The RMT union mentioned on Tuesday that seafarers from overseas had been introduced in to interchange the 800 sacked British crew and had been being paid as little as £1.80 an hour.

P&O Ferries disputed the figures however declined to debate the charges or give different charges and wouldn’t verify whether or not it paid the minimal wage. The corporate mentioned it will give assist to sacked employees to discover a new job both at sea or onshore, and would assist those that couldn’t discover a new job.

P&O Ferries and its proprietor, DP World, are anticipated to face a grilling from MPs on Thursday, when they are going to face questions from parliament’s enterprise and transport committees.

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