Eircom workers vote to approve €92m rescue package

31 Mar 2011

A ballot of workers at Eircom has endorsed a rescue package proposed by the operator’s management team by a vote of 1,908 in favour and 1,388 against.

The package includes a 10pc pay cut as part of a reduced hours formula where staff will work nine days per fortnight.

The move will save Eircom €92m over the next three years. The company has debts of €3.8bn and has warned it is in danger of breaching its debt covenants.

“Workers at Eircom have yet again demonstrated their commitment to securing a sustainable future for the company by agreeing a very difficult package of measures,” said CWU general secretary Steve Fitzpatrick.

Difficult measures

“The rescue package seeks to implement a range of measures to modernise the company and reduce costs. These measures will have a significant impact on the personal financial circumstances of workers at the company and come on top of swinging increases in taxes and other costs on families, including the introduction of an abhorrent Universal Social Charge by Fianna Fáil and the Greens.”

“We hope and expect that these further sacrifices of the workforce will be recognised by other stakeholders in the future of Eircom, and that these shareholders will now deliver on their commitment to much-needed investment in the company,” he said.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years