This in from Wightlink, in their own words, Ed
Securing the future
Wightlink is proposing to make a number of changes which will help to secure the future of its services to and from the Isle of Wight.
The changes will enable it to provide a sustainable timetable which meets the needs of the overwhelming majority of customers, affordable pension arrangements and sustainable employment for staff.
They will also help put the company on a secure financial footing going forward and facilitate investment in the new ships which Wightlink will soon require for the Portsmouth-Fishbourne route.
Minimising the impact of challenging external circumstances
The difficult economic climate and resulting drop in consumer spending pose challenges for all businesses, but those which largely rely on tourism have suffered the additional impact of the recent poor weather.
The transport sector is also facing steeply rising fuel prices and increased regulation which has an impact on costs.
Wightlink wants to protect customers as much as possible from the impact of these external factors, and so is rigorously assessing its cost base to maximise efficiency.
Matching timetables to customer demand
Wightlink is planning to revise its timetables to match more closely with customer demand.
In response to low passenger numbers, a small number of overnight sailings (a total of eight roundtrips across its three routes) will no longer operate.
Despite extensive marketing effort to increase passenger numbers, the night sailings continue to be very poorly used.
The affected sailings operate at very low capacity (on average, 93% empty for passengers and vehicle decks 80% empty) with staff often outnumbering passengers. Removing them will help to secure the long term future of the routes.
Launch of a voluntary redundancy scheme
As a result of the timetable changes, the company will need fewer staff and so, in full consultation with the unions, is inviting volunteers for redundancy.
Wightlink is not intending to run a compulsory redundancy programme and members of the night crew who do not wish to volunteer for redundancy will be transferred to day time working or other routes.
Volunteers are also being invited from across the company so that other areas of potential efficiency can be identified.
Launch of the Wightlink Personal Pension Plan
Wightlink has opened discussions with the unions about its plans to create a new defined contribution pension scheme: the Wightlink Personal Pension Plan (or Wightlink PPP).
In future, staff who wish to join a company pension scheme will join the Wightlink PPP. It will offer flexible levels of contributions for staff, which will be matched by the company up to an agreed level, and will be compliant with the new auto-enrolment pension legislation. Members of the existing final salary pension scheme will be unaffected.
Comment from Russell Kew, CEO, Wightlink
Commenting on the changes, Chief Executive Russell Kew said “Wightlink has a long and proud history of serving the Isle of Wight, and we are determined to protect that heritage. These changes are a realistic response to the challenges which our business faces in today’s difficult economic climate and will help to secure our vital service for passengers into the future as well as providing sustainable employment for our staff.”
