More than 1,000 clerical workers in Telecom Eireann may withdraw from negotiations on an Employee Share Option scheme (ESOP). The scheme would provide employees with up to 14.9 per cent of the company in return for agreeing to changes worth up to £110 million in operational savings.
They are all members of the Civil and Public Service Union. Other unions in Telecom Eireann are likely to press ahead with negotiations on an ESOP deal regardless of the outcome of the CPSU ballot. However, a strong vote for rejection of the ESOP strategy within the CPSU would increase resistance to it among the company's 10,500 other employees.
Opponents of ESOP within the CPSU are highlighting the fact that employees are expected to "pay" for part of their share in Telecom Eireann with increased pension contributions. As former established civil servants, many of Telecom's employees have enjoyed non-contributory pensions in the past.
The ESOP has been central to negotiations on restructuring Telecom Eireann. The Minister for Public Enterprise, Ms O'Rourke, was briefed last Tuesday on the latest developments by the Government's financial advisers, Morgan Stanley. Informed sources say significant progress has been made in concluding an ESOP deal and an outline agreement might be ready soon.
The CPSU agreed to ballot its members on continued involvement in the ESOP negotiations after a special conference of members in Telecom Eireann last Saturday. The ballot concludes on December 15th.
The union's general secretary, Mr Blair Horan, concedes that many members are unhappy about the cost of the ESOP, in terms of potential take-home pay. Lengthy delays in concluding the talks have also contributed to resistance towards an ESOP.
While delegates at the conference urged members to vote for withdrawal from the ESOP negotiations, the union nationally is not taking a position on the issue.