Logistics boss accused of receiving huge bonus while receiving millions of UK furlough cash
Unions representing workers at Northampton-based XPO Logistics are calling for a full investigation after they said the firm American chief executive of the company received an incentive award of up to £57m, while the company is estimated to have received more than £100m from the UK government in furlough payments.
XPO employs more than 25,000 workers in the UK and carries out transport and logistics work for many of the leading supermarkets including Morrisons, Co-op, Waitrose and Iceland.
The Unite and GMB unions says that XPO has refused to make up the pay of the wages of workers who have been furloughed, who are only receiving the basic 80% government rate.
The unions say they has anaylsed government figures of furlough payments, which revealed that XPO claimed at least £3.28m in December 2020 and up to £10.5m in February 2021.
Despite claiming millions in furlough payments, says Unite, XPO last year recorded $16.5bn in revenue with a record breaking second half of the year. In July 2020 Jacobs received a long term cash award of up to $80m and an annual bonus of $3.3m for his handling of the Covid pandemic.
Unite national officer Matt Draper said:“The bonuses given to the chief executive are a complete kick in the teeth for the XPO workers who have risked their health to keep the company operating throughout the pandemic.
“There is clearly one rule for the bosses and another for the workers on the frontline who have been denied any kind of bonus. What makes this even more sickening is that UK taxpayers’ money appears to have gone straight into the pockets of the company’s American chief executive.”
GMB National Office Mick Rix said: “XPO spend on executive pay is nothing short of greed – especially when you contrast how slow XPO was to enact UK government guidance for employers on social distancing and other requirements at the start of the pandemic.
“At one stage, XPO encouraged workers to share freezer suits at its Morrisons supermarket site in Scotland – until GMB stepped in.
“It’s time the XPO workforce was treated with respect and given a share in the vast company profits that they help contribute to.”
XPO is due to spin off the logistics arms of its business under the new name GXO, which will be headquartered in London. The new company GXO, will look to quickly expand by continuing XPO’s strategy of mergers, acquisitions and takeovers.
XPO has contacted for comment.