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Union backing for Eircom cuts

STAFF at Eircom have been advised by their union to accept a controversial company plan to prevent redundancies.

Employees face a 10pc pay cut as part of a package of measures to save the company €92m over the next three years.

The Communications Workers Union says its National Executive Council has decided reluctantly to recommend the Eircom rescue plans to members when they ballot on it over the coming fortnight.

In a statement the CWU national executive said: "The proposed agreement also outlines a long list of proposed changes, which will be negotiated over a short timeframe and which will be expected to transform the company into a modern tele- communications company.



TECHNOLOGY

"It is also expected that these changes will lead to a return of the lost time to the workforce within an 18 month timeframe."

The union says the deal also believes that the main shareholders in the company -- STT and the Eircom Employee Share Ownership Trust -- will invest in Eircom by addressing its debt issues, and with new technology.

And it added that the measures in the rescue plan should transform Eircom into a modern telecommunications company.

Eircom CEO Paul Donovan welcomed the agreement, saying the plan was "a vital next step in the company's transformation journey to secure the future of the organisation".