Irish Ferries has offered voluntary redundancy packages to its 543 seafaring workers on its Irish Sea services on the Dublin-Holyhead and Rosslare-Pembroke routes.
A statement from the company said it could not continue its operations with current high costs in the face of increased competition from rival shipping operators and low cost airlines.
It said the situation had deteriorated this year with a 9% drop in the Irish Sea car passenger market and rises of up to 50% in the cost of fuel.
Irish Ferries said it had been 'unsuccessfully negotiating' with SIPTU and the Seaman's Union of Ireland to achieve cost reductions.
The company has given workers the option of staying, but on rates of pay tabled by unions at the Labour Relations Commission in January for the retention of staff on Irish Ferries' MV Normandy 'and on crew ratios covering time off that are in line with the market'. A decision by Irish Ferries to outsource crewing on its Rosslare to France routes earlier this year led to a strike.
The redundancy package is for up to eight weeks pay per year of service, including statutory two weeks. Irish Ferries added that this would be available 'provided there is agreement on the company's right to replace departing staff with crew from an agency employing EU personnel'.
Chief executive Eamonn Rothwell said he regretted having to write to staff in this way. 'If action isn't taken, Irish Ferries will go the same way as B&I except this time, there'll be no bail-out by the Irish Government,' he said.
Shares in ICG closed 15 cent higher at €9.90 in Dublin this evening.
