Talks between ESB and staff collapse

TALKS have broken down between the ESB and its workers over a €140m cost reduction programme which would involve 1,000 voluntary redundancies.

The ESB group of unions, made up of the ESB Officers Association, SIPTU, Unite and TEEU, has now informed the company that they are in a “dispute” situation and will be consulting with their members. However, it is unlikely the situation could flare into the first industrial action at ESB since the 1990s.

According to the company, both sides are agreed that there is a need for the €140m in savings to be achieved but the method by which that figure is reached is a bone of contention.

At 3am yesterday morning the group of unions put, what they said, was a comprehensive proposal to management aimed at reaching an agreement. They said their proposal was “as far as the unions could possibly go”, would comprehensively address the €140m and was fully reviewed by independent verifiers Grant Thornton.

However, yesterday afternoon the ESB issued a counter position which was considered by worker representatives to effectively reject their proposals.

“ESB have continued to pursue a resolution which contains many non-payroll issues,” the group of unions said in a joint statement last night. “ESB unions are extremely disappointed with the ESB’s response and the unions have formally withdrawn their comprehensive proposal.

It is understood that €60m of the total saving are to come from the redundancies and the remaining €80m to be agreed between the parties. All ESB unionised workers among the 6,000 strong workforce will have to be balloted on the outcome.

An ESB spokesman confirmed that talks had been “suspended” but said negotiations were not over.