The deputy chairman of the ESB claimed last night that he had been dismissed from his position following a serious row at board level concerning the company's €511 million pension deficit.
Mr Joe LaCumbre, deputy chairman for the past five years, said he had been removed following an intervention by the company's chairman, Mr Tadhg O'Donoghue. Mr LaCumbre, a worker director, said he was reviewing his legal options.
However, the company said Mr LaCumbre had not been dismissed and Mr O'Donoghue said that he did not have the powers to remove Mr LaCumbre.
The boardroom crisis threatens to seriously destabilise union-management talks on pay, pensions and an enhanced employee shareholding at the ESB.
Mr Brendan Ogle, who represents ATGWU workers at the ESB, said the group of unions needed to get the bottom of what happened.
"I find the timing extremely curious, particularly considering Joe's view on the pension issue," he said.
He said talks with management were proving extremely difficult and it was time to talk about the "real issues".
The row, while sparked originally over the issue of how to handle the pension deficit, also concerns Mr LaCumbre's precise status as deputy chairman.
Mr O'Donoghue last night said he had queried whether Mr LaCumbre's position as a deputy chairman had the required legal backing.
"You cannot put your finger on any legislation or regulations that sanctify this position," he said.
However, Mr LaCumbre said he had been appointed as deputy chairman and a worker director by two Ministers - Mr Dermot Ahern and Ms Mary O'Rourke. He said he had a ministerial warrant to prove this.
Mr LaCumbre said he was summoned to a meeting yesterday morning by Mr O'Donoghue to discuss his recent comments regarding the company's €511 million deficit.
In these comments, Mr LaCumbre said his legal advice suggested the ESB should not be paying a dividend to the Government while presiding over such a large pension deficit.
However, Mr O'Donoghue told him such remarks were extremely unhelpful considering there was ongoing union-management talks to address this issue.
Mr O'Donoghue last night said he still believed Mr LaCumbre's remarks were extremely unhelpful.
Following this meeting, a full board meeting took place and a resolution was passed which decided that another non-executive member, Mr Eoin Fahy, would chair meetings if Mr O'Donoghue was unavailable. This resolution was passed by six votes to three, with one abstention. After this, Mr LaCumbre left the meeting in protest.
Mr O'Donoghue said he did not have the power to dismiss anyone on the board but he insisted the board had the power to decide who could chair meetings in his absence.
Mr O'Donoghue's term of office ends in September but yesterday he denied the resolution favouring Mr Fahy had anything to do with his term ending. He said he hoped to attend the February board meeting, although he acknowledged he might not be present for the March meeting for personal reasons.
Last night Mr LaCumbre's union, the Technical, Electrical and Engineering Union (TEEU), said it would resist the attempt to "remove" Mr LaCumbre. It is to seek an urgent meeting with ICTU and the Department of Communications about the issue. It said Mr O'Donoghue had tried to "demote" Mr LaCumbre.
Its spokesman, Mr Davy Naughton, said the actions of Mr O'Donoghue contravened the decisions of successive Ministers. "It seems extraordinary that the chair feels he can remove him in defiance of ministerial warrants issued by these Ministers."
The union's statement said: "Joe has been extremely vocal on behalf of members, especially on the issue of pensions. He has repeatedly raised this issue at board meetings, as he is required to do under accounting procedures. It appears that exercising his rights and his responsibility to ESB staff on the board has offended some of those members."
