Irish Ferries is attempting to cut its costs

Hundreds of workers from the Dublin-based firm have been warned they face a temporary lay-off without pay, unless talks over cuts are restarted.

Irish Ferries has said routes between Dublin and Holyhead and Rosslare and Pembroke Dock would see the changes.

The deputy mayor of Holyhead, Jeff Evans, said the suspensions - if they went ahead - would affect the port enormously.

"We've only just recovered from years of unemployment," he said.

"We're on the up, many millions have been spent on the port. We're re-developing, more jobs are coming in slowly and the uncertainty over the ferry service really doesn't help."

Mr Evans said many people living in the port needed the service to get to Ireland where they worked.

It could get serious Phil Tallet

"This will be a blight on us. People working in Ireland on short or long term contracts won't be able to get back and forth," he added.

Irish ferries is blaming a failure to come to an agreement with two unions - Siptu and Seamen's Union of Ireland - about cost cutting measures, as it strives to make itself more competitive.

On Tuesday, around 600 company workers received letters saying that, unless negotiations could be advanced by 20 February, the services would be suspended.

Spokeswoman Emma Hargreaves said that any suspension would not begin before 27 February.

It would leave the company only operating the Ulysses, the world's largest car ferry, on the Dublin-Holyhead route.

However, the Seamen's Union are saying that, if the other three services are suspended, its members will not continue to operate the Ulysses.

Ferries affected Jonathan Swift, between Dublin and Holyhead Isle of Inishmore, between Rosslare and Pembroke Normandy, between Rosslare and Roscoff

Phil Tallet is the Chairman of Pembroke Dock's Chamber of Trade and said as the summer season approaches "things could get rather serious".

"That's when pubs and hotels benefit from the ferries," he said.

"People use it who work in Ireland regularly, to go home to Ireland, for stag parties."

A spokesman for Irish Ferries said it was not sure how long the lay-off might be, but indicated it could be for several months.

"Obviously a time would come when we have obligations to people going on their summer holidays," added the spokesman.

The firm has recently set itself the task of shedding 52 sea-going staff and saving �2.3m a year, after an investigation found it had "the highest crew ratio in the British Isles".

But it has not been able to agree with the unions, despite negotiations at the Irish Labour Court and Labour Relations Commission.

Irish Ferries said the letter sent to staff said it was willing to negotiate any alternative proposals put forward by the union.