Michelin Nigeria Board Approves Severance Package

The board of directors at Michelin Nigeria Ltd have met and approved of a severance package for employees affected by the closure of the company’s Port Harcourt factory. The proposed £15 million total severance package is above the standard £10 contractual severance entitlement for employees in such circumstances, and Michelin Nigeria’s director of communications, Victoria Oso Adefala, released a statement saying the company elected to pay the additional amount in order to mitigate the hardship experienced by affected employees.

The severance package includes medical coverage equivalent for 18months, and a one-year housing allowance. Mrs Adefala also provided confirmation of Michelin’s decision to retain all company employees on its payroll and at their current salaries until May 31 as previously announced. This payment of salaries notwithstanding, all employees will be paid three months total emolument in lieu of notice as per the company’s conditions of service.