Maersk Agrees to Settlement with US Labor Department After Firing Whistleblower

By Jose Resurreccion

Jul 26, 2024 02:11 AM EDT

Maersk Agrees to Settlement with US Labor Department After Firing Whistleblower
A MAERSK container ship at the Port of Montreal, in Montreal, Quebec on June 11, 2024.
(Photo : GRAHAM HUGHES/AFP via Getty Images)

Maersk Line agreed to a settlement offered by the US Labor Department Thursday (July 25) in relation to an alleged retaliatory termination of a container ship seaman who revealed questionable practices and potential safety concerns onboard the company's vessels. 

According to the US Labor Department, the company agreed to not require its workers to raise concerns to it before bringing them to the US Coast Guard, in exchange for not retaliating against employees who were reporting about the problems detected inside the company.

It could be recalled that the Occupational Safety and Health Administration (OSHA) ordered Maersk in 2023 to pay over $700,000 in back pay and damages to workers to the seaman, identified by The Marine Executive as the ship's chief mate, who was fired in March 2021 for lodging a report to authorities. 

The order has since been challenged by Maersk.

READ NEXT: Maersk Shipping Disruption Amid Houthi Attacks in Red Sea Could Force More Delays

Maersk Denies Wrongdoing but Agrees to Compensate Whistleblower

The Wall Street Journal reported that the agreement concluded the legal battle which highlighted Maersk allegedly firing a seaman who formerly served aboard the container ship Safmarine Mafadi. The settlement would include Maersk having to compensate for the whistleblower employee. 

On the other hand, Maersk insisted that it did not do anything wrong and that it stands by its decision to terminate the whistleblower since the allegations were unsubstantiated and not made in good faith. 

In addition, Maersk added that it was "proud of its safety culture" and insisted that the security of its workers remained its "highest priority."

Meanwhile, the Labor Department stressed that workers have the right to directly report safety concerns to authorities without being intimidated by their employers.

READ MORE: Shipping Giant Maersk to Resume Red Sea Voyages With US-Led Security Force in Place

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