P&O offers over £36m in compensation to staff

P&O Ferries has announced it is offering more than £36m in compensation to sacked staff.
By The Newsroom
Published 22nd Mar 2022, 22:44 BST
Updated 22nd Mar 2022, 22:51 BST
A protest by unions outside the Houses of Parliament, London, over P&O Ferries handing 800 seafarers immediate severance notices last week. Picture date: Monday March 21, 2022. PA Photo. See PA story SEA Ferries. Photo credit should read: James Manning/PA WireA protest by unions outside the Houses of Parliament, London, over P&O Ferries handing 800 seafarers immediate severance notices last week. Picture date: Monday March 21, 2022. PA Photo. See PA story SEA Ferries. Photo credit should read: James Manning/PA Wire
A protest by unions outside the Houses of Parliament, London, over P&O Ferries handing 800 seafarers immediate severance notices last week. Picture date: Monday March 21, 2022. PA Photo. See PA story SEA Ferries. Photo credit should read: James Manning/PA Wire

It comes after nearly 800 workers were fired without notice last week, sparking backlash from across the political spectrum.

A spokesman for P&O Ferries said: “This has been an incredibly tough decision for the business: to make this choice or face taking the company into administration. This would have meant the loss of 3,000 jobs and the end of P&O Ferries. 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.”

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The company said that, subject to the settlement agreement, it would pay 2.5 weeks uncapped salary for each year employed, rather than the statutory one or 1.5 weeks.

It is also offering 13 weeks salary in lieu of notice, and 13 weeks salary on top of this in absence of consultation.

P&O Ferries said the settlement is believed to be the largest compensation package in the British marine sector.

But Mick Lynch, general secretary of the Rail, Maritime and Transport union (RMT), said that “the pay in lieu of notice is not compensation”.

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“It is just a payment staff are contractually entitled to as there was no notice given,” he said.

P&O Ferries chief executive Peter Hebblethwaitee has been invited to give evidence to two committees of MPs on March 24.

A BEIS spokesman said on Tuesday: “We have received a response to the Business Secretary’s letter to P&O and are reviewing their explanations.

“We will continue to work at speed with the Insolvency Service to consider if legal action is required and will provide an update as soon as possible.

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“Given recent reports of staff being paid below the national minimum wage, the Business Secretary has also asked the Employment Agency Standards Inspectorate to investigate the terms of agency workers’ contracts.”

Related topics:Britain