SPC Chairman: 'Increasing levels of political interference in the company'

Ugland confirms it's refused to hand over some information to politicians

The Steam Packet has refused to provide Tynwald members with some information they’ve asked for in relation to an ongoing dispute with staff.

It’s raised concerns about ‘increasing levels of political interference in the management of the company’ and said it’s responded ‘in a manner consistent with an arm’s length company’.

That’s despite the Steam Packet being owned by the Manx Government.

Letter

Chairman Lars Ugland wrote to politicians on Monday (16 October) to provide ‘some background and explanation to the impasse’ with members of the Nautilus union.

It’s unhappy with the company’s approach to moving to a live onboard model for the Manxman and has accused the Steam Packet of adopting a ‘fire and rehire’ policy.

Negotiations between the unions and the company started in 2020.

“In its consideration of information requests from certain members of Tynwald the board has determined to respond in a manner consistent with an arm’s length company.

"It has therefore declined to disclose any information which it believes is not in the best interests of the company or the shareholder.

"To act otherwise, would be to compromise the existing governance framework.” Lars Ugland

Questions

In the first sitting of Tynwald, since the summer recess, 11 questions were tabled about the Steam Packet Company.

Ahead of this Mr Ugland told members the company had been asked to respond to ‘no less than six questions’ concerning various matters relating to operations and management.

Some of these, he said, concerned the disclosure of commercially sensitive information and were not ‘in the best interests of the company or the shareholder’.

Live Onboard

The Steam Packet maintains that it’s made ‘considerable efforts’ to reach an ‘amicable resolution’ with Nautilus over a ‘single change in employment terms and conditions’.

This being the live onboard model - with staff asked to work either one week on/one week off or two weeks on/two weeks off.

The company adds pension, leave arrangements and all other terms ‘are wholly unchanged’.

“In short, the LOB model reduces cancellations and increases operational flexibility and resilience, outcomes that are extremely important and valuable for a lifeline service that literally puts food on the shelves.” – Lars Ugland

Staff working on the Ben-my-Chree currently work 12 hours on/12 hours off with rest periods of not less than 10 hours in a 24-hour period.

But the Steam Packet says the impact of this is an increased number of sailing cancellations due to crew being out of hours.

Mr Ugland told Tynwald members the new live onboard model would mean:

• If weather for the outward leg is fair, but not the return, Manxman can complete the outward journey and then wait-out an improvement in conditions for the return.
• If Manxman completes the outward leg, but is unable to dock due to harbour conditions, the vessel can also wait until conditions improve.
• In some circumstances Manxman could re-route and simply sail around the weather.
• With increased flexibility Manxman could operate day-trip sailings to Liverpool - not currently possible due to hours of rest restrictions.

Consultation Period

The chairman adds that, to date, Nautilus has not submitted any counter proposals to the company.

A 30-day consultation period has been started with staff being told to make a final decision on whether to accept the change to their terms and conditions.

This, Mr Ugland, says has been done ‘reluctantly’.

In response to accusations that the company bore similarities to P&O Mr Ugland added: “Nothing could be further from the truth.”