Irish Continental Group (ICG) is coming under mounting political pressure to abandon a plan to replace more than 540 of its staff with workers on lower pay after Taoiseach Bertie Ahern condemned the measure as "deplorable".
The ferry company's seafaring staff have been given a deadline of next Sunday to accept a "voluntary" severance package or accept cuts in pay and conditions on its Dún Laoghaire-Holyhead and Rosslare-Pembroke services.
Siptu has threatened strike action from Monday, arguing that those who accept the severance package will be replaced by another set of workers from eastern Europe earning only one-third the existing rate of pay.
As talks to avert industrial action took place yesterday at Government Buildings, Mr Ahern made a strident and unusual attack in the Dáil on the rationalisation plan and said he was seeking legal advice on the issue.
"I would not defend for one second the manner in which the company has acted. It has told a staff of over 500 the term . . . and if they do not get out, they will lose their benefits and God knows what will happen to them . . . and that when they are out the door in a few days the jobs will be filled by non-nationals from God knows where and on conditions that nobody knows," Mr Ahern said.
"That is what it is at. It is sharp practice, is totally unacceptable in the Irish labour context and is used on the basis of the flag of convenience. Perhaps many of the workers will see the package as a good one, but I do not know the position on that issue."
The Taoiseach, who was speaking after Labour leader Pat Rabbitte raised the issue, has been under pressure to address the issue at the company.
ICG said in a statement last night that almost 70 per cent of the affected staff had "signified their intention to opt for the voluntary redundancy package".
"Irish Ferries recognises that the concern being expressed by An Taoiseach and others is real and genuine," the statement said. "However, it must be recognised that, unless the company takes the immediate steps proposed to reduce its cost base, the competition which it is facing from low-cost surface competitors, from low-cost air carriers and from the impact of a rapidly reducing passenger/car market and a steep rise in fuel costs, will hinder Irish Ferries' survival."
The company was represented by employers' lobby Ibec at the talks convened in Mr Ahern's department by the National Implementation Body, the group that monitors the Sustaining Progress partnership agreement.
An Ibec spokesman said he had no comment to make as the talks were continuing.
Siptu president Jack O'Connor said it was very rare that the head of the Government would condemn the actions of a particular company and said Mr Ahern's remarks underlined the seriousness of what was afoot.
"We are now looking forward to what the Government intends to do about the problem. There is no point in the Irish trade union movement participating in national agreements if they allow this type of situation to arise."
