Vice UK staff face minimum pay-out as jobs put at risk

Tens of UK staff members at Vice have been left “devastated” by being offered the minimum, statutory redundancy pay after the media group filed for bankruptcy earlier this month. 

It is understood that dozens of Vice UK colleagues have been notified that they are at risk of redundancy after the group officially filed for bankruptcy to enable a sale to a consortium, led by its largest debtholder Fortress Investment Group.

Under the terms of the redundancy pay, employees receive half a week’s pay for each year an employee was aged under 22, a week’s pay for each year aged between 22-40 and a week and a half’s pay for each year an employee is aged 41 and older. 

It is the latest redundancy round to hit the UK staff at Vice Media Group. In November, Broadcast revealed that the group was cutting back on jobs across scripted and unscripted production as part of a restructure of its subsidiaries Vice Studios and Pulse Films.

The National Union of Journalism (NUJ) chapel said the Vice UK Union is “devastated and shocked to learn that not only are dozens of colleagues being placed at risk of redundancy, but that the company is currently only prepared to offer the bare minimum of statutory redundancy pay to those affected.

“Throughout this process, the company has shown little regard for the personal circumstances of many of our colleagues affected, such as staff who are on maternity leave or pregnant, and many who are on lower salaries with less career experience.”

At its peak, the media group had been valued at $5.7bn (£4.6m) following a $450m investment from private equity group TPG in 2017, while it is also understood that recently departed chief executive Nancy Dubuc was on an annual salary of $1.5m (£1.2m).

NUJ organiser Mostafa Rajaai said: “The overwhelming feeling amongst our members is that the company has failed in protecting its dedicated staff from the worst impacts of the company’s financial mismanagement, which its workers had nothing to do with.” 

The sale to the Fortress-led consortium would see Vice Media Group bought for approximately £180m, in the form of a credit bid, however the deal is subject to higher and better bids from other parties. The sale is expected to conclude within three months.