Eircom workers face pay cuts and redundancies
The review, which started this week and which is expected to last up to three weeks, is examining every section of the company to see where savings can be made to make up for the pre-tax loss of €791 million for the first half of its financial year and e433m deficit in its pension scheme.
Steve Fitzpatrick, of the Communication Workers Union, which represents 5,000 staff at eircom, said those members had never faced pay cuts or wholesale redundancies at the company before.
He said while the union would strenuously oppose compulsory redundancies, it also realised that to resist all measures put forward by the company could leave his members in an even worse position.
“The real problem for eircom is its inability to compete. The regulatory authority has it selling its products cheaper than all its competitors.
“Yet if eircom were to collapse, its competitors could not operate without its network.”
Senior management are already being asked to accept a 10% pay cut and other managers face a cut of between 5-10%.
Mr Fitzpatrick said the percentage for the rest of the staff was still to be sought as well as any redundancies.
“The problem with job cuts is that operationally there is no room for cutbacks in staff, especially if it is the company’s wish to develop a vibrant network.
“In these recessionary times who is going to invest in Ireland if the network is not developing?”
An eircom spokesman said the unions and company would work through the operational review through a “partnership” process to find the necessary cost reduction.
“There is no big plan in place. People are being told information as it is agreed.”
Unions and the company agree that changes need to be found in the way the industry is regulated.
“The regulation needs to be adjusted to encourage investment and offer innovation and new products,” the company spokesman said.
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