Redundancy package could cost Irish Ferries €20m

THE voluntary redundancy package offered to Irish Ferries’ workers could cost the company €20 million.

Financial experts said depending on how many of the 543 workers on Irish Ferries routes from Dublin to Holyhead and from Rosslare to Pembroke opt for the deal, the company could face a bill of between €10m and €20m.

Staff are being offered a choice of eight weeks’ pay per year of service by Irish Ferries or remaining with the company but on much lower pay and changed working conditions.

When Irish Ferries offered redundancy to the crew of MV Normandy it cost the firm over €8m.

If employees choose to continue with Irish Ferries, they could earn as little a €3.60 per hour and have to work 12-hour shifts.

It is unclear how many of the workers will accept the redundancy programme offered by the ferry company as it seeks to reduce its costs base. SIPTU has rejected the package and served two weeks’ strike notice on the company. However, the Seamen’s Union of Ireland has not issued strike notice and its members may take the redundancy deal.

The Irish Congress of Trades Unions has agreed to intervene in the dispute to seek a resolution between the two sides.

There was no sign from Irish Ferries yesterday that it would hold off on implementing the restructuring, which will see many of the workers who take voluntary redundancy replaced by cheaper labour from recruitment companies, as requested by Marine Minister Pat ‘The Cope’ Gallagher.

Mr Gallagher urged the company to wait until the Government completed its review of the industry and decided on potential tax breaks to improve the competitiveness of the sector.

A report from the Irish Maritime Development Office recommended increasing tax supports to the industry, in line with those in other European countries under EU arrangements.

Irish Ferries, part of the Irish Continental Group, says it must reduce its cost base to counter falling passenger volumes and the threat from budget airlines.