Stena Line sends more employees on a leave of absence

Photo: Stena Line

The operator announced the plan to furlough 600 employees with 150 redundancies across the UK and the Republic of Ireland. According to the press release, the decision is an unavoidable response to the on-going global crisis, a result of the COVID-19 pandemic.

Since the beginning of the crisis, Stena Line experience a large decline in travel bookings and freight volumes, as many countries restricted cross-border passenger traffic. It is estimated that passenger figures will not recover until well into 2021. The resulting drop in revenue forces the company to take drastic steps in order to cut costs.

Ian Hampton, Director, Stena Line, explained, "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."

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 a number of routes. Several vessels have also been taken out of service.

According to Hampton, the decisions made are crucial to securing the continuity of Stena Line's freight operations, as the company is committed to keep vital supply lines open for the UK and Ireland.

Furloughed employees 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. 

Mid-march, the company was forced to announce 950 redundancies affecting workers 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.

Stena Line does not rule out further furlough, redundancy or changes to its current sailing schedules or routes as the situation keeps developing.