The Seamen's Union of Ireland is to ballot its members on industrial action in a dispute which could see 600 staff laid off at Irish Ferries.
The company suspended sailings on three routes from Ireland today, blaming the cancellations on trade unions for refusing to agree to talks on cost-cutting measures. Irish Ferries says it needs to cut €3.4 million from its operating costs to bring it in line with competitors and has been in discussions since the middle of last year. It wants to lay off over 50 workers and increase officers hours at sea as part of the cost-cutting plan.
Talks at the Labour Court broke up last month with the company saying it could not deal with unions separately.
The Labour Court recommended the Seamen's Union of Ireland (SUI) enter negotiations jointly with SIPTU but the SUI has refused, saying it has negotiated separately for the past 14 years.
Irish Ferries said it was "forced" to withdraw the services by the refusal of the SUI to negotiate jointly on the new manning levels needed to bring costs in line with its competitors.
"At present, the cost base on Irish Ferries vessels is over 30 per cent out of line with that of its main competitor and even more out of line with other carriers with whom the company must compete," the company said in a statement today.
It issued a surprise letter last night, saying it would lay off about 600 staff without pay if negotiations could not be advanced by February 20th.
A spokesman indicated the lay-offs could be for several months but it is unlikely the action will be taken before the end of the week.
Irish hauliers urged both sides in the dispute to reach agreement quickly to "reduce the damage the current impasse is causing to Irish businesses". Businesses are currently being forced to make alternative arrangements to export their products, the Irish Road Haulage Association said.
IRHA president Mr Eamonn Morrissey said that over the years, hauliers had remained loyal to Irish Ferries and the service it provided and were now being forced to look for bookings at short notice from its competitors. He said it appeared the company "may have a legitimate claim to institute a restructuring programme and it is incumbent on the unions involved to understand the realities of change within the market".
Mr Morrissey urged both sides to "consider the flexibilities required" to ensure the viability of Irish Ferries.
Labour Party Marine spokesman Mr Tommy Broughan accused Irish Ferries of "browbeating" staff after the letter was issued last night.
The ferries suspended are the MV Isle of Inishmoreon the Rosslare - Pembroke route; the HSC Jonathan Swifton the Dublin - Holyhead route and the MV Normandyon the Rosslare - Cherbourg route. The MV Ulysses- one of the largest car ferries in the world - will continue to operate the Dublin - Holyhead route.
Irish Ferries says it will assist passengers with bookings to get tickets for other services or issue refunds.