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.

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."