Sir Richard Branson is facing a mounting backlash in his home country over his decision to order Virgin Atlantic staff to take eight weeks of unpaid leave and then ask for a government bailout.
MPs and the press have attacked the British Virgin Group founder, estimated to be worth £11.2 billion, for not spending his personal fortune to help employees.
Conservative MP Richard Fuller took Sir Richard to task in Parliament, saying, “The owner or partial owner of Virgin airlines has suggested they take eight weeks of unpaid leave. I decided to look at how much that would cost.
“Eight weeks at the £94 statutory sick pay would cost £754 per employee. There are 8,571 employees in Virgin Airlines. If all of them took eight weeks unpaid leave that would be a cost of £6.4 million.
“Sir Richard Branson’s net worth is US$3.8 billion. If he’s able to get 2 per cent interest on that money for eight weeks, he will earn the equivalent of £9.9 million. So I say, Sir Richard Branson, give up the interest on your wealth for eight weeks and pay your employees yourself their unpaid leave.”
“Big or small — in a small village, a leader of a church or a leader of a large business — when it comes to looking at the protection of your workers, the time is now, and we will judge you all by your actions.”
Meanwhile, opposition Labour MP Kate Osborne, herself diagnosed with coronavirus, described Virgin Atlantic’s decision not to help as “an absolute disgrace” on Twitter.
The backlash came as a string of high-profile British business figures dipped into their own pockets to help staff. Soccer player-turned-businessman Gary Neville has stated he will pay staff at his two hotels their wages, and offered his premises for use for the health service.
Daily Mail columnist Martin Samuel, one of the UK’s most high-profile journalists, wrote, “‘Screw it, let’s just do it,’ is Branson’s business motto. This time, however, it seems he has decided to screw everybody, and leave it to someone else.”
However, comments gathered by Forbes from employees online have been quick to show support for the decisions being made by their CEO.
“You hear Virgin and you automatically think Richard Branson … I get it. But as one of those staff that this is affecting, I just want to leave this here once again … our CEO is doing everything he can to try and avoid job losses,” said Sam Grant.
Jenny Walton said, “At least this is better than having to make redundancies. The unpaid leave will be spread out over the yearly salary. I personally would take this option over losing my job. Also worth noting that Richard Branson didn’t create the virus.”
The Virgin Group, founded by Sir Richard, currently owns 51 per cent of Virgin Atlantic and 10 per cent of Virgin Australia.
He once famously said of the former airline, “I have always viewed Virgin Atlantic as one of my children.”
Maurice Duffill
says:Sir Richard’s apparent lack of commitment to staff of the Virgin Group will do untold harm to his reputation and that of the group. I imagine the hard-won respect he has generated in his affairs will be lost forever.
Rocket
says:Is anyone surprised, this bloke has been parading around like a clown for decades, acting as though there were no airlines until he came along and invented one.
I’ve always thought he was ‘moderately’ successful (if you view his perceived successes against his failures) but largely a BS artist.
Case in point, sold his shares in Virgin America to Alaska and then crowed about how sad it is to see the brand disappearing while pocketing a nice little profit.