Employees in Cablelink, the State's largest cable company which is now up for sale, are seeking a share option scheme which would give them 5 per cent of its equity. It is understood that the unions' approach to the sale, which could value the company in excess of £300 million (€381 million), has caused friction among employees. A 5 per cent shareholding could be worth up to £15 million if Cablelink fetched £300 million or more.
Sources confirmed yesterday that SIPTU had lodged a claim for a share option scheme with the Labour Court and said there had been a hearing on the issue last Friday. A decision is expected within the next couple of weeks. It is also understood that a number of Cablelink employees who had been members of the Amalgamated Transport & General Workers Union (ATGWU), recently transferred to SIPTU, the State's largest union. Sources said this was because union representatives in SIPTU had promised to seek share options.
One employee told The Irish Times that workers felt their union, the ATGWU, should be pushing for a share option scheme similar to that of Telecom Eireann, which owns 75 per cent of Cablelink and where employees are to get a 14.9 per cent stake.
However, the employees said they were told this would slow the sale process down.
An ATGWU spokesman said SIPTU represented 40-50 Cablelink employees, who were on secondment from RTE. The State broadcaster is a 25 per cent shareholder in Cablelink.
He said ATGWU officials, who represented 170 of the 250 Cablelink staff, had met the Minister for Public Enterprise, Ms O'Rourke, a year ago and had raised the share scheme issue. He said they were told that seeking a share scheme could delay the sale by up to 15 months.
"We were aware the company needed massive investment - up to £500 million - and we took it on board and decided not to seek a share scheme," the spokesman said.
However, the spokesman said that, in various talks, they made it clear that shareholders had never invested in Cablelink, but that management and workers had increased the company's value. "We said we would be seeking a once-off payment when Cablelink was sold," he said.
He denied that a substantial number of ATGWU members had transferred to SIPTU over the issue, saying that only about three people had switched membership.
It is understood that senior executives in Cablelink said the share scheme was a non-runner when it was raised. The issue is referred to in the information memorandum which was circulated to interested parties this week.
