Union warns against action at ESB

A leading trade union has warned that threats of industrial action at the ESB will play into the hands of the privatisation lobby.

The Government has agreed to sell off a minority stake in the semi-state company to meet commitments under the EU/IMF bailout deal.

Trade union Unite said it plans to ballot its members at the electricity company over the sell-off plans up to and including industrial action.

But in signs of a rift among unions at the company, the Technical Engineering and Electrical Union advised against “knee-jerk reactions”.

Eamon Devoy, general secretary, said: “The last thing we need is a major industrial battle that will play into the hands of our competitors abroad or privateering vultures.

“If the Government and ESB management make the right decisions at this critical time they will have the full support of the TEEU and its members in the company.”

Communications Minister Pat Rabbitte said announced last week that the Government had signed off on plans to part-privatise the semi-state company.

But facing criticisms that the move was a retrograde step, he said the electricity company would largely remain in state hands.

Under the terms of the €85bn EU/IMF bailout deal, the Government must consider the privatisation of state assets.

But Mr Rabbitte said the Government wanted to get maximum value for the company and ruled out a fire sale, claiming the stake may not be sold this year or in the first quarter of 2012.

But Unite said the gain from any fire sale of the company was far outweighed by the the loss of energy security, loss of dividend for the taxpayer and the loss of services.

The TEEU said it has left the ESB group of unions, saying it can no longer continue membership of it in its current form.

Mr Devoy said a serious assessment of the strategic options was needed with the company and the workers to find common ground.

“If the sale of a minority share holding is to be considered it should be in the context of a sale to pension funds or other investment vehicles that would take a positive long term view rather than leave itself open to anonymous speculators or other energy companies,” he said.

The Government has said the size of the stake to be put up for sale has yet to be decided.

The minister said it will be considered by a group of officials from the Departments of Communications, Energy and Natural Resources, Public Expenditure and Reform, Finance and the National Treasury Management Agency.

It will report back to the Government by the end of November.