Home Breaking Thomas Cook redundancies to cost taxpayer £60m

Thomas Cook redundancies to cost taxpayer £60m

by LLB Reporter
3rd Oct 19 3:22 pm

Early estimates are predicting that the taxpayer will have to stump up £60m to help pay for 9,500 staffs unpaid wages, holiday pay and redundancies since the company went bankrupt.

This in addition to the £100m the government estimated for the repatriation of 150,000 holidaymakers.

According to the Transport Salaried Staffs Association union, by the insolvency service, around £18m has so far been paid to Thomas Cook staff.

The Insolvency Service said, “Redundancy payments for former employees of Thomas Cook are still being processed by the Redundancy Payments Service (RPS), and so we do not have a total figure available. All payments made by the RPS will be subject to statutory limits.”

3,500 staff were kept on by the insolvency service, the remain number of staff that were not kept on will be owed unpaid salaries for three week, with a £525 a week limit which adds an additional £9.5m.

Manuel Cortes, general secretary of the Transport Salaried Staffs Association, said, “They have made interim payments totalling over £18 million, with more to follow.

“However, not every worker who lost their job has applied for redundancy. It’s vital they do so as quickly as possible.”

The union chief added, “Those who were dismissed without notice or consultation have a legal claim for compensation and we have asked the liquidator not to contest such claims.

“This will result in payments being made to our members in a more timely fashion and without having to resort to litigation.”

British Airline Pilots Association (Balpa) general secretary Brian Strutton told PA: “Staff at Thomas Cook have been left high and dry by the directors.

“It’s hard not to feel aggrieved at Thomas Cook management for this disaster.

“It is they who ran down cash so far that there isn’t even any left to pay wages owed, but did find the cash to keep the German airline, Condor, open for several days until the German government stepped in with some financing.”

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