P&O Ferries to pay 拢36.5m in compensation to affected workers after sackings last week
Some 40 members of staff will receive severance payouts of over 拢100,000, the company says, adding that it amounts to the largest ever compensation package in the marine sector.
Tuesday 22 March 2022 21:52, UK
Embattled ferry operator P&O has said it will pay out 拢36.5m in compensation to workers who were fired last week.
The company sacked more than 800 of its workers on the spot in a widely criticised move to cut costs.
In a statement on Tuesday afternoon, P&O said the severance deal twould amount to the largest ever compensation package in the marine sector.
Payouts are linked to the period of service, and in some cases are over £170,000, the statement said.
P&O Ferries has said that 575 of the 786 seafarers affected are in discussions to progress with the severance offers.
The move comes as P&O scrambles to respond to business secretary Kwasi Kwarteng, who called on the company last week to reply to him by 5pm today.
Sky News reported yesterday that the company was forcing workers to sign gagging orders in return for their severance.
"I'm fuming"
The release from P&O about its payouts was a clear attempt to regain control of the narrative after five days of atrocious press . The bigger figures were given prominence high up in the press release, the fact that 40 staff will receive over 拢100,000, for example, and the total value of the severance package, which is over 拢36m. Transparency over this is clearly advantageous to P&O. It has been criticized for behaving in a secretive manner and claims from unions that some replacement staff are being hired on as little as 拢1.80 an hour have been very damaging, even though no proof has been provided to back this up. The fact that settlements will be more generous than statutory is important in starting to rebuild some of its reputation in terms of its dealing with staff. But the reality is the vast majority of ex-staff won鈥檛 get anywhere near as much as 拢100,000, with payouts linked to length of service. And many who lost their jobs are still furious. 鈥淭he audacity鈥� one messaged me almost immediately. 鈥淒o they think they鈥檙e above due process because they鈥檝e got money? This is making it worse, this statement. I鈥檓 fuming.鈥�
Separately, the government announced on Tuesday that two parliamentary select committees will join forces to hold a one-off hearing on Thursday, 24th March at 09:30am.
The Chair of the Transport Committee, Huw Merriman MP, and the Chair of the BEIS Committee, Darren Jones MP, will lead MPs in a joint session which will examine what options are available to the government, and the 800 workers who have lost their jobs.
The chief executive of P&O, and a representative from its parent company DP World, have been invited to give evidence at the hearing.
The ferry company said in its statement that it had been forced to decide between firing nearly 800 employees, or shutting the business down.
"This has been an incredibly tough decision for the business: to make this choice or face taking the company into administration," a spokesperson for P&O said.
"This would have meant the loss of 3,000 jobs and the end of P&O Ferries."
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"In making this hard choice, we have guaranteed the future viability of P&O Ferries, avoided large-scale and lengthy disruption, and secured Britain's trading capacity."
Labour has called on the government to begin "criminal action" against P&O.
Shadow transport secretary Louise Haigh said the government must "immediately" commence criminal action against P&O Ferries "for their flagrant breach of employment law".
"It should mean unlimited fines, not only for the company but for directors and managers or any of those who are complicit," Ms Haigh added.