More than 9,000 staff at the ESB could be in line for a significant pay rise of €1,500 a year each following a recommendation from the company's main industrial relations body.
The electricity company currently has a pensions deficit of more than €500 million, which means that paying pensionable pay increases is highly problematic.
As a result, the company's industrial council has suggested paying each staff member a €1,500 lump sum every year for the next four years instead.
This recommendation, which would apply to all of the company's 9,289 staff, is currently being studied by the main unions and management.
The company has refused to comment on suggestions that the lump sums translate into annual pay increases of about 2.5 per cent a year, or 10 per cent over four years.
Staff at the ESB are also likely to benefit from the national pay agreements.
The industrial council is an important body within the company whose recommendations tend to be accepted by the company, if not the unions.
The council has also recommended that contributions to the company's pension fund should increase by 6.5 per cent.
The company would pay an additional 4.5 per cent, with staff paying 2 per cent. These changes would apply from January 1st next year.
While some unions have already expressed disappointment with the package, ESB staff may be set to benefit further. The recommendation from the company's industrial council says that discussions should also take place at local level concerning change.
It is possible lump sum arrangements might also emerge from these talks, but there is little chance of any superannuated rises being sanctioned.
"The services of the industrial council will continue to be available to the parties in the normal way in order to assist with the implementation of all matters covered by this recommendation," states the council.
The company said yesterday it was studying all aspects of the recommendation.
At present, the total salary bill for staff at the company comes to €561 million, excluding expenses.
Based on this figure the average salary per employee of the ESB works out at over €60,000 a year.
Some trade unions originally lobbied for an increased shareholding at the company, but this idea is not being actively pursued at present.
The Minister for Communications, Noel Dempsey, is currently reviewing the electricity sector and has asked consultants Deloitte to present an interim report shortly.
This report may recommend the breaking up of the ESB and the company may be forced to sell off or lease out some of its 19 power stations.
The Minister has spoken on several occasions about reducing the company's dominance of the sector, but the company is anxious to remain an integrated utility.
