Eircom union sources have warned that unofficial action will escalate if talks to resolve the dispute over compensation for Eircell employees moving to Vodafone is not resolved.

The union alliance and Eircom management are meeting this morning against the backdrop of a walkout by 70 workers at the Operator Services Centre in Marlborough Street, Dublin, yesterday.

The workers are members of the Communications Workers' Union (CWU). The union stresses that the action was unofficial, although formal strike notice has been served on Eircom. It also stresses that the walkout was not a reaction to the bid for Eircom by Mr Denis O'Brien's e-Island company.

However, a spokesman for the CWU says the fact that any offer from e-Island for Eircom would be preconditional on Eircom disposing successfully of the mobile phone subsidiary, Eircell, "intensifies the need to resolve the compensation issue regarding Eircell. Eircom should bring the dispute to a speedy conclusion rather than allow it to drag on".

While the CWU has refrained from further comment, it is well known that Eircom unions regard the e-Island bid as strengthening their bargaining position for compensation.

This is the third unofficial stoppage in three weeks. Only one operator remained on duty at the centre between 10 a.m. and 4 p.m.