P&O has said it has reached a settlement with its workers, which is believed to be the 'largest compensation package in the British marine sector'. 

It comes after P&O announced it was sacking 800 staff without notice due to rising operational costs and financial losses. 

40 employees will receive more than £100,000 and some could receive more than £170,000. 

The total value of the financial settlement from P&O Ferries is £36,541,648, said the company.

A spokesperson 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.

It will pay 2.5 weeks' uncapped salary for each year the seafarers were employed, rather than the statutory 1 or 1.5 weeks and up to 13 weeks’ salary in lieu of notice.

There will also be 13 weeks' salary paid due to the absence of consultation before the sacking. 

Some employees are receiving 91 weeks’ pay and the chance of new employment, said the company.

The vacancies will be filled by cheaper foreign labour, after the company, owned by DP World, said:  “In its current state, P&O Ferries is not a viable business.

“We have made a £100m loss year-on-year, which has been covered by our parent DP World. This is not sustainable. Our survival is dependent on making swift and significant changes now. Without these changes there is no future for P&O Ferries.”

They continued: “These circumstances have resulted in a very difficult but necessary decision, which was only taken after seriously considering all the available options."

The BBC obtained a video showing staff being made aware of their loss of employment via a pre-recorded video message. 

Bournemouth Echo: Signs erected near the Houses of Parliament, in Westminster, in protest against the decision by P&O Ferries to sack 800 of its staff (PA)Signs erected near the Houses of Parliament, in Westminster, in protest against the decision by P&O Ferries to sack 800 of its staff (PA)

Mick Lynch, general secretary of the Rail, Maritime and Transport union (RMT), said: “The pay in lieu of notice is not compensation, it is just a payment staff are contractually entitled to as there was no notice given.

“The way that the package has been structured is pure blackmail and threats – that if staff do not sign up and give away their jobs and their legal right to take the company to an employment tribunal they will receive a fraction of the amount put to them.

“The actions of P&O demonstrate the weakness of employment law and protections in the UK. P&O have flagrantly breached the law and abandoned any standards of workplace decency.

“They have ripped away the jobs, careers and pensions of our members and thrown them on the dole with the threat that if they do not sign up and give away their rights they will lose many thousands of pounds in payments.

“This is totally unacceptable and RMT will continue to campaign for our members to be reinstated at P&O and for better employment laws to protect all British workers.‎”