Isle of Wight East MP Joe Robertson has hit out at Wightlink’s private equity ownership following news that up to 50 staff roles are at risk as part of a major restructure at the cross-Solent ferry operator.
Robertson has criticised the move, warning that it is unclear how such cuts can be made without further damaging already reduced services.
He says the real issue behind high prices and financial pressures lies in the company’s ownership model, with profits flowing to foreign shareholders.
Joe Robertson MP has said:
“I support the principle of ensuring efficiencies in the delivery of ferry services but it is not clear that Wightlink can make redundancies without impacting their increasingly reduced services. If savings are made, we can be confident they won’t be passed on to passengers.
“In any case, the main driver of high prices is the private equity ownership model whereby large profits are paid out to foreign shareholders. Private equity should not be operating lifeline transport services in an unregulated market. It doesn’t happen anywhere else in the UK and the Island should be no different. Wightlink must do the right thing by all their staff and their families.”
As previously reported by Island Echo earlier today (Tuesday), staff were informed on Monday that the company is aiming to cut up to 50 roles, with 160 employees now said to be at risk. Wightlink says it hopes the redundancies can be achieved on a voluntary basis through what it calls the ‘Rostering and Operational Efficiency Project’.
The Portsmouth-based company, which operates services between Ryde, Fishbourne and Yarmouth, says the changes are needed to ‘modernise and improve efficiency’ and form part of a 5-year plan that includes replacing the ageing St Faith ferry.
The operator has confirmed it has entered a 30-day consultation with operational staff and the Rail, Maritime and Transport union. Despite the proposed cuts, Wightlink insists there are no plans to reduce sailings and that over 30 new vacancies could be created as part of the restructure.
A spokesperson for Wightlink has said:
“Like many businesses, rising costs and inflationary pressures are having an impact with our cost growth being twice that of our revenue growth over the past year.
“To ensure we are able to continue investing in our people, our fleet and our ports, we are currently going through a 30-day consultation with our operational staff alongside our union the RMT.”
why does he find it an issue of profits to foreign shareholders.
does he feel annoyed at british pension funds, who invest in overseas companies, receiving dividends from those companies, that are then paid to british pensioners?
If savings must be made, they must be made.
Maybe Joe wants to pay their wages.
You cannot employ persons just so they have a job,
businesses do not operate like that, if they do,
they go under.
Better to decrease staff numbers than increase fares.
perhaps the labour thieves shouldn’t increase business taxes then
It would appear that Wightlink is about to borrow another massive chunk of money, £30million of which is earmarked for shareholders even though they cannot afford to reduce prices.
Really good idea to replace the most reliable ferry they’ve got on the Fishbourne route…not. Perhaps if they want to make someone redundant, they could start with the elusive ‘ essential crew member’ who seems to spend more time unavailable than actually on duty?
The greatest and most welcome redundancy, which would undoubtedly save the most money and be of the greatest benefit would, of course, be that of the CEO.