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Irish Ferries
Press Release
In our interim statement of September 8th 2005 Chairman
John McGuckian stated the following ;
“Given the changing patterns of travel behaviour
and the new sustained higher level of fuel costs we
are developing and implementing proposals to bring
[Irish Ferries] cost base to the levels applying internationally”.
This followed the outsourcing of crewing on our vessel
serving our route to France, a step which helped stabilise
what was a loss making route.
We also reported that we were engaged in a review
process, in an attempt to progress a sustainable way
forward in crewing our Irish Sea vessels.
Irish Ferries has now issued the following press release:
IRISH FERRIES OFFERS IRISH SEA EMPLOYEES VOLUNTARY
REDUNDANCY PACKAGES
Irish Ferries has now offered a voluntary severance
package to its 543 seafaring employees on its Irish
Sea services between Dublin / Holyhead and Rosslare
/ Pembroke. 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. Both offers are open for
acceptance until 2nd October next.
The decision taken by Irish Ferries results from its
inability to continue operations at its current high
cost base in the face of low cost shipping competition
and increased capacity from low fares airlines. In
2002, the company indicated to staff and unions that
its costs position was untenable. Since then, the company
has been unsuccessfully negotiating with SIPTU and
the Seaman’s Union of Ireland (SUI) to achieve
cost-reductions , both directly and with the help of
various third party intermediaries.
Corrective action on costs is now required if Irish
Ferries is to avoid becoming unprofitable. The operational
context has deteriorated in 2005 with a 9% fall in
the Irish Sea Cars market and recent hikes in the cost
of fuel (up 50% in 2005 alone).
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 (LRC) in January
2005, for the retention of directly employed staff
on the MV Normandy and on crew ratios covering time
off that are in line with the market. Compensation
for loss of income and time-off will be paid. Alternatively
all staff can avail of a voluntary redundancy package
of up to 8 weeks pay per year of service (including
statutory of 2 weeks) provided there is agreement on
the company’s right to replace departing staff
with crew from an agency employing EU personnel.
Chief Executive, Eamonn Rothwell told staff he regretted
having to write the letter to them.
“For many years we have pointed out the major
cost differences between us and our competitors and
told you about the threat they represent,” he
said. “ 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.”
END
19th September 2005
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