Irish Ferries offer severance package to workers

Over 540 employees working for Irish Ferries have been offered a voluntary severance package.

Chief Executive, Eamonn Rothwell told staff he regretted having to make the offer but said that there was no alternative as profits had fallen and cost had risen: “For many years we have pointed out the major cost differences between us and our competitors and told you about the threat they represent.

“If action isn’t taken, Irish Ferries will go the way of B&I except, that this time, there’ll be no bail-out by the Irish Government.”

The company confirmed that the severance package was on offer to 543 seafaring employees on its services on the Dublin-Holyhead and Rosslare - Pembroke routes.

Irish Ferries has been in negotiations with unions for some time over the use of agency and overseas staff in a bid to cut operating costs.

The company claims that in an "operational context" the position has deteriorated in 2005 with a 9% fall in the Irish Sea Cars market and recent hikes in the cost of fuel up 50% this year.

Irish Ferries blamed competition on the shipping routes and low cost airlines.

Recent negotiations with SIPTU and the Seaman’s Union of Ireland (SUI) with a view to achieving cost reductions had proved unsuccessful.

Irish Ferries said that all existing staff on the Irish Sea have the option of staying on the rates of pay tabled by both unions at the Labour Relations Commission in January 2005 for the retention of directly employed staff on the MV Normandy.

Alternatively, all staff can take a voluntary redundancy package of up to eight weeks pay per year of service, including the statutory of two weeks, provided there is agreement on the company’s right to replace departing staff with crew from an agency employing EU personnel.

These offers of voluntary severance for those who wish to leave the company are supported by packages to compensate staff who choose to continue in employment on the ships for any changes in work practices required of them.

(SP)