Stena Line to furlough 600 employees and make 150 redundant

Stena Line has announced that it plans to furlough 600 employees with 150 redundancies across the UK and the Republic of Ireland. This urgent measure is an unavoidable response to the on-going global Covid-19 crisis, that has had a hugely damaging effect on travel and transport across Europe.

The company is to ensure those furloughed maintain 80 per cent of salaries.

Since the crisis emerged Stena Line has experienced a large decline in travel bookings and freight volumes. It is estimated that passenger figures will not recover until well into 2021. As a result of the significant reduction in revenue, the firm is forced to take tough decisions in order to cut costs.

“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,” says 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.

“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. 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,” says Hampton.

Everyone on furlough will receive 80 per cent 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 as 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.  With no end to the crisis in sight, Stena Line is planning for the long-term.

On Monday, 16 March, Stena Line announced redundancies that will affect 950 people employed in Scandinavia. A number of these employees have since also been furloughed. Further job losses have subsequently been made in Denmark and the Baltics. 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.

UK Job Retention Scheme

In line with the UK’s Job Retention Scheme all employees placed on Furlough Leave will receive 80 per cent of their salaries paid by the government capped at £2,500 per month. However, Stena Line have agreed to maintain all salaries at 80 per cent.

Temporary Covid-19 Wage Subsidy Scheme

Employees in the Republic of Ireland will receive the Temporary Covid-19 Wage Subsidy Scheme, which provides for up to 70 per cent of wages to a maximum of €410 per week.  Stena Line will also maintain all Irish employees’ salaries up to 80 per cent, to ensure that employee earnings are matched in both countries.

RMT General Secretary Mick Cash says:

“This is another major employer of UK seafarers reacting to flat lining demand by gambling with key workers’ jobs and future at a time of national crisis.

“Redundancies are a serious development and must not be used to avoid other alternatives that would save jobs. We seek further discussions on that as part of the mandatory consultation process.

“Dock and port workers are eligible for state support but we cannot agree to ‘furlough’ for our seafarers when the Government guidance does not give UK seafarers at Stena Line or other major employers clarity on eligibility.

“The furlough scheme will be retrospective so Stena Line should commit to covering 100 per cent of wages for everyone affected by today’s announcement, as well as reinstating the company sick pay scheme for all employees.”