Dubai-owned P&O Ferries has unveiled its compensation package for sacked crew members as unions accused the company of blackmail.
The UK ropax operator, owned by ports giant DP World, said its payout of £36.5m ($48.4m) to nearly 800 redundant seafarers is “believed to be the largest compensation package in the British marine sector”.
P&O laid off all its crews with no notice on Thursday so it could bring in cheaper agency workers.
The shipowner said it was either this “incredibly tough decision” or “face taking the company into administration” after years of losses.
The deal has saved 3,000 jobs, the company added.
“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,” P&O concluded.
Forty of P&O’s seafarers are receiving more than £100,000 each, with deals linked to the length of service.
Some packages are worth more than £170,000, and no employee will bank less than £15,000.
A total of 575 of the 786 seafarers affected are in talks about the offer, suggesting significant resistance from others — and potential legal action down the line.
The package comprises 2.5 weeks of salary for each year employed, ahead of the statutory one or one and a half weeks.
Terms already agreed with union
But the RMT union said this had already been agreed in talks on pay and conditions before the shock sackings.
Staff are also getting up to 13 weeks salary in lieu of notice, and another 13 weeks in the absence of a consultation period.
This lack of consultation could yet land the company in court.
“Some employees are receiving 91 weeks’ pay and the chance of new employment,” said P&O.
The owner is supporting workers to find new jobs at sea or onshore.
Cash to assuage guilt?
The Nautilus International union called the statement “an explanation of sorts, but not an explanation of its outrageous and illegal actions, but an admission of guilt”.
The union claimed the company is trying to buy its way out of the situation.
It questioned why a company in such desperate financial circumstances would pay out such a large sum.
Nautilus also called the redundancies “fake”.
Bullying tactics?
“Let’s be clear, this statement is confirmation that P&O Ferries believes that with enough money it has no need to follow the laws of this country or be hindered by the seemingly shallow epithets of its Emirati parent’s ‘ethical business standards,’” the union said.
“Instead, it intends to bully our maritime professionals into signing settlement agreements to buy their silence,” Nautilus added.
The RMT called the statement “disgusting”.
“Sacked seafarers have been basically told that if they don’t sign up to be gagged by non-disclosure agreements, you not only lose your job, you lose money as well,” the union said.
“This is from an organisation which has received millions from the taxpayer to support furlough payments and whose parent company DP World paid out vast sums in dividends last year,” it added.
