Eircom plans to stick to its guns on pay cuts

26 Mar 2009

Eircom said today that it is determined to pursue the pay cuts and restructuring programme it needs to survive, despite unions attacking the plan.

Unions – including the Communications Workers Union, Impact and the Public Service Executive Union – are understood to have accused the incumbent telecoms operator of a u-turn on an agreement not to seek voluntary pay cuts from workers until discussions on the company’s finances took place.

However, Eircom is understood to have gone ahead with its plans, and has informed staff that pay cuts of 10pc from managers and 5pc from graded staff will be implemented.

Reports last week suggested that Eircom is also pushing ahead with a restructure that could see as many as 1,000 workers made redundant, while a further 9,000 permanent and contract staff will be asked to accept pay cuts.

It is believed that negotiations between unions and the operator were to take place before the restructure goes ahead.

This morning, a statement by the company sent to siliconrepublic.com read: “Eircom is absolutely determined and committed to pursue the pay-cut reductions through the organisation in a staged way.

“These steps are unavoidable to ensure the competiveness and survival of Eircom. The company is surprised at the union position on the matter, and the HR director has written to the unions to clarify the issue,” Eircom said.

By John Kennedy