Maersk Line has reached a settlement with the US Department of Labor over a whistleblower’s firing.
The shipping company unlawfully fired a seaman for reporting potential safety concerns on a containership.
The case involved a whistleblower who reported issues like broken equipment and possible alcohol consumption by crew members onboard the Safmarine Mafadi.
As part of the settlement, Maersk agreed not to require employees to report safety concerns to the company before notifying the US Coast Guard.
The company also committed to refraining from retaliating against employees who report such concerns.
This agreement resolves a legal dispute that included a three-day hearing in Boston and involves compensating the dismissed seaman.
US agencies have increasingly focused on protecting whistleblowers from retaliation, even if they bypass internal company channels to report issues directly to regulatory bodies.
Despite the settlement, Maersk did not admit to any wrongdoing.
The company defended its decision to terminate the seaman.
It cited a neutral arbitrator’s finding the allegations were unsubstantiated and made in bad faith.
Maersk maintained its policy at the time required workers to notify the company and the Coast Guard of safety concerns.
“This seaman showed the kind of bravery for which mariners have long been known by raising concerns that, left unchecked, could have endangered everyone aboard the Safmarine Mafadi”
Maersk said it is “proud of its safety culture and its highest priority remains the safety and security of our mariners and shoreside colleagues.”
The Labor Department said employers cannot create policies that compel employees to report issues internally before contacting federal regulators.
Seema Nanda, the department’s top lawyer, said: “No employer may violate whistleblower regulations or create policies that require employees to notify their employer before they report concerns to federal regulatory agencies.
“This seaman showed the kind of bravery for which mariners have long been known by raising concerns that, left unchecked, could have endangered everyone aboard the Safmarine Mafadi.”
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The incident dates back to December 2020, when the seaman reported several safety issues on the Safmarine Mafadi.
It includes problems with lifeboat gear, unsupervised trainees, leaks, and potential alcohol use onboard.
Maersk subsequently terminated the seaman in March 2021 for reporting these issues to the Coast Guard without informing the company.
The Occupational Safety and Health Administration (OSHA) had initially ordered Maersk to pay over $700,000 in back wages and punitive damages, a decision the company challenged.
Maersk agreed to retrain supervisors and provide OSHA literature to crew members as part of the settlement.
