Eircom and the Trade Union Alliance say they have agreed in principle to a range of modernisation and cost-cutting measures that will save the operator €92m by 2013.
The deal, which will result in a 10pc pay cut for employees, will be voted on by union members. The pay cut will be achieved through a reduced formula that will mean staff will only work nine days per fortnight.
Eircom CEO Paul Donovan this afternoon described discussions with the Trade Union Alliance as “constructive.”
He said: “I am pleased that an ‘in principle agreement’ has been reached.
“This plan is a vital next step in the company’s transformation journey to secure the future of the organisation.”
Eircom holds €3.75bn net debt and has already been downgraded by certain credit rating agencies.
Eircom said this week that its trading environment remains challenging and revenues for its second quarter were down 6pc to €438m.