The Isle of Man Steam Packet Company says it been left with 'no choice' but to serve notices to sack some of its officers.
Last night (Friday), it was revealed that the ferry firm had given some staff notice that their employment contracts would be terminated after they refused to sign 'detrimental' new deals.
It comes days after members of the Nautilus International union - who are employed as officers by the Steam Packet - voted in favour of taking industrial action against the company.
The results of the ballot published earlier this week revealed that 89% of its Steam Packet members had voted to take action short of an all-out strike.
That means that from 6pm onwards on the December 27, ship officers responsible for delivering lifeline supplies and services to the island will not work any overtime and will refuse to work up to cover senior roles onboard.
The news was the latest development in a long-running dispute between the union's members' and the Steam Packet over its attempt to adopt a ‘live aboard’ policy for its members of staff.
In a public statement after news of the notices broke, the Isle of Man Steam Packet Company said that the lack of progress on negotiations 'or any genuine attempt to achieve a resolution from Nautilus' left it with no choice but to take the 'least palatable option'.
A spokesman for the ferry firm said: 'The company’s action is fair, legal and proportionate.
'Time and again the company has avoided this course of action in order to give negotiations a fair chance to succeed.
'It has been made clear that the 1st January was a deadline for agreeing to a resolution.
'All officers are very welcome to agree to the single change in terms before 15th March or to take part in individual conciliation if they feel they are unable to live aboard for any reason.
Nautilus director of organising Martyn Gray said on Friday that the notices issued by the Steam Packet just days before Christmas were a 'shocking escalation'.
'These are not the actions of a responsible employer,' he added.
'Those who have been served notice are being punished for the company’s failure to engage in independent collective arbitration and for standing up against the bullying tactics of fire and rehire.
'Nautilus will continue with our planned industrial action commencing at 1800 on 27th December and will consider further action.
'It is shameful that the Manx public will likely face escalating consequences of Steam Packet’s poor management and unreasonable behaviour.'