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 Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ship Repair & Conversion

GAC Starts Hull Cleaning Op'ns in Oman

GAC EnvironHull hull cleaning operations using the brush-and-diver-free HullWiper system starting at the port of Sohar, just outside the Gulf of Hormuz. This

Braemar Hosts Insurance Experts

Braemar (incorporating The Salvage Association) welcomed an invited group of marine insurance professionals onto its specialist port and shipyard familiarization

Minimize the Risks, Think Cold Bonding

Cold bonding: a safer alternative to hot work Hot work required for welding, grinding and cutting operations presents certain potential hazards when conducted

Finance

Mitsubishi Exits Cruise Business; Books $357m Loss

Mitsubishi Heavy Industries, Ltd. (MHI) announced its decision to book an extraordinary loss from its cruise ship business in the company's consolidated financial

China to Import 335 MT of Naphtha, Wants More

China is set to import more than 335,000 tonnes of naphtha and diesel, rare moves for the world's no. 2 oil consumer given it has been self-sufficient at meeting domestic oil product demand,

Total CEO: EU Must Fight US Crude Export Law

First major public appearance of new Total head; he challenges European politicians to fight US ban. The new head of French energy major Total challenged Europe to fight Washington over the U.

 
 
Maritime Careers / Shipboard Positions Maritime Security Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2795 sec (4 req/sec)