Stena Line has announced that it plans to furlough 600 employees – with 150 redundancies across the UK and the Republic of Ireland.
They said this urgent measure is an unavoidable response due to the on-going global COVID-19 crisis, that has had a hugely damaging effect on travel and transport across Europe.
Since the crisis emerged Stena Line – whose key Irish Sea route is between Holyhead and Dublin – has experienced a large decline in travel bookings and later on freight volumes.
Over the weekend North Wales Live reported that a Stena source had warned about the dire situation.
Stena added that existing services from Holyhead on the Estrid and Adventurer vessels are continuing.
It is not known yet the breakdown on where the jobs losses will hit.
Stena estimates that passenger figures will not recover until well into 2021 and the firm says it has been forced to take “tough decisions” in order to cut costs and ensure vital supply lines of essential goods to the UK and Ireland are protected.
(Image: David Powell / Daily Post Wales)
“ The COVID-19 crisis has meant that Stena Line is experiencing a significant decline in passenger and freight volumes across all its 20 European routes. We are having to make some very difficult decisions, that we hoped we would never have to make,” said Ian Hampton, director, Stena Line.
The announcement of furlough and redundancies relates to both UK and Ireland shored-based and sea-based employees, including those working on vessels on the Irish Sea and North Sea.
It follows a reduction of the number of sailings on several routes; several vessels have also been taken out of service, though not on the Holyhead-Dublin route.
Mr Hampton added: “In order to secure the continuity of our freight operations, we have no choice but to reduce our costs . We are committed to keep vital supply lines open for UK and Ireland. Regrettably we must furlough employees on temporary paid leave and make redundancies, as we adjust to this new reality.
(Image: Daily Post Wales)
“We will do everything in our means to ensure essential supply lines stay operational during what is a very difficult time for the company and the countries that we serve.”
Everyone on furlough will receive 80% of their salaries. Where UK and Irish government schemes don’t cover the full amount, the remainder will be paid by the firm.
Furlough will also be used to help vulnerable employees, such those that need to self-isolate due to underlying health conditions, those that are pregnant, and where possible, those with caring responsibilities due to COVID-19.
Consultation on furlough and redundancies will commence today with the trade unions.
The company is evaluating its operations in all regions and does not rule out that there could be further furlough, redundancy or changes to its current sailing schedules or routes.
