Irish Ferries Must Cut Costs to Survive

Monday, September 19, 2005
Irish Ferries is offering 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.

The decision results from Irish Ferries’ inability to continue its 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.”

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ship Repair & Conversion

Video: Catapult Testing on Aircraft Carrier Abraham Lincoln

U.S. shipbuilder Huntington Ingalls Industries’ (HII) Newport News Shipbuilding division has begun testing the updated catapult systems aboard the U.S. Navy aircraft

USCG to Inspect Storm-damaged Anthem of the Seas

The storm-damaged Royal Caribbean cruise ship Anthem of the Seas is scheduled to return to New York Harbor Wednesday evening where it will be met by a team of inspectors from U.

Beacon Finland Appoints Rio Marine for US Support

Beacon Finland, a maritime-related firm engaged in naval architecture, marine engineering and equipment, has appointed Rio Marine to service its JAK-ATB coupling systems in the U.

Finance

Brazil's CEEE to sell stakes in Wind Farms, Dams

Brazil's Companhia Estadual de Energia Elétrica (CEEE), a power utility controlled by the state of Rio Grande do Sul, will sell assets including stakes in wind farms,

DP World Bolsters Investment in India

DP World Pvt. Ltd, the world’s fourth biggest container port operator majority owned by the Dubai government, has plans to invest over $1 billion in India for augmenting its port-related operations.

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0777 sec (13 req/sec)