The ESB could be facing industrial action within weeks unless a new row over the role of outside contractors at the company is resolved.

The ESB is currently using about 1,500 outside sub-contractors to upgrade and modernise the company's network.

However the ATGWU, which represents about 1,000 staff technicians at the ESB, is objecting to the company's continuing use of these staff.

A ballot for industrial action, up to and including strike action, was passed in recent days by ATGWU members.

It is understood there was an 85 per cent turnout.

The union's ESB representative, Brendan Ogle, said he wanted immediate talks with ESB management about the role of outside contractors at the company.

He said ESB apprentices were losing out on employment because of the presence of outside contractors.

The company needed to come up with a new deal to address the problem, he said.

The ATGWU plans to withdraw co-operation with outside contractors from September 12th and if ESB management does not address the issue, full-scale strike action is scheduled to kick in from September 19th.

Mr Ogle said the widespread use of contracted staff had major implications for the pay, conditions and pension rights of ESB staff.

When contacted for comment yesterday, Mr Ogle said he would be very surprised if ESB management did not arrange talks for next week.

An ESB spokesman said no discussions had taken place so far and the company had not been presented with any demands.

He denied that ESB-trained apprentices had been laid off or blocked from getting job opportunities.

He said about 50 per cent of this year's apprentices were likely to get jobs at ESB, with others taking up employment elsewhere.

He said the training provided by ESB gave the apprentices a "marketable qualification".

He said nobody who took ESB apprenticeships was guaranteed employment.

Both the ESB staff technicians and the outside contractors are working for ESB Networks.

ESB Networks is a separate business unit within ESB Group which serves all electricity customers in the Republic.

The company operates a State-wide distribution system which includes 170,000 transformers and almost 150,000 kilometres of overhead lines and underground cables.

More than € 3.5 billion is being invested in this infrastructure by ESB Networks in the coming years.

In industrial relations terms the ESB is currently facing several problems.

For instance, unions and management cannot agree on a way to deal with the company's €500 million pension deficit.

Also the company agreement which governs pay and conditions, the Programme of Action for Competitiveness and Transparency (PACT), is about to lapse and a replacement will have to be negotiated between management and unions.