Ferry firm blasted for ‘exercise in greed’

IRISH Ferries is seeking 543 voluntary redundancies from its workforce or it will cease passenger ferry services across the Irish Sea.

The company said it was forced into the move because of falling passenger volumes on its routes from Dublin to Holyhead and Rosslare to Pembroke as budget airlines attracted passengers. It also said rising costs, such as fuel and labour, were higher than its competitors.

It said the offer is open to all employees, but those who do not accept it will have to sign up to new working conditions and pay terms. It is looking to recruit from employment agencies across the EU, which will reduce its labour costs.

Staff who opt for the redundancy package will get eight weeks’ pay per year of service, including the statutory two weeks.

But SIPTU’s Paul Smyth, who represents Irish Ferries’ workers, said it was a cynical tactic to increase profits.

“This is an exercise in greed, it is nothing but greed. What Irish Ferries are now saying is that we can get workers to work for three euro an hour, 12 hours a day and for three months continuously and this can engender massive profits. It is an exercise in greed nothing more.”

Irish Ferries said a report drawn up by consultants Farrell Grant Sparks showed that €20 million in costs had to come out of the business or it would begin to make heavy losses on its Irish Sea routes. The company said its profits margins will fall from 5% this year to just 1.2% in 2007 and it would be losing money after that.

Irish Ferries chief executive Eamonn Rothwell said in a letter to staff: “The reality we face is that to continue operations on the Irish Sea we must reduce the cost base by €15million a year. Another €5m per year must come out of shore-based costs.

“If the offer isn’t accepted by 2 October 2005, or if industrial action is threatened or happens, the company will have no option but to completely exit the operation of ships on the Irish Sea. If that happens, the company, unfortunately, will have to issue compulsory redundancy notice.”

While yesterday’s action came as a shock to workers, the company has been under pressure for some years now as the boom in low-cost air travel has eaten into its business.

The number of passengers carried on its Irish Sea routes has fallen around 9% so far this year, while the cost of fuel has risen 50%.

Mr Rothwell said he regretted the action, but it had to be taken for the survival of the company.

“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 [Line] except, that this time, there’ll be no bail-out by the Irish Government,” he said.