Industrial action at Eircom may be avoided if union members and management at the company can reach agreement over the payment of the latest phase of the national wage agreement.
According to trade unions, the owner of the telecom company Babcock & Brown is withholding a 2 per cent pay increase due under the Towards 2016 national wage deal until the unions sign a "memorandum of understanding" on work practice changes.
In a report in this morning's Irish Times, Steve Fitzpatrick, general secretary of the Communications Workers Union (CWU), said the unions were willing to discuss any changes to work practices but they would not agree to "preconditions" before the 2 per cent basic pay rise would be paid.
Mr Fitzpatrick said the company was in breach of the terms of Towards 2016 and in a letter sent to Rex Comb, Eircom's chief executiveyesterday, he stated: "The CWU will cancel the proposed ballot if you give the union a written, unequivocal guarantee that all outstanding monies will be paid ASAP."
Responding in a statement this morning Eircom said it wishes to establish a "framework agreement that elaborates more fully on the commitments made by all parties towards improved customer service".
The company added that it had carried out the first phase of wage increases in November last year and had "every expectation that this matter can and will be resolved quickly, so that the second phase 2 per cent increase will be applied and backdated to 1st May 2007".
"In addition," the statement continued, "once the framework agreement is in place, the company is committed to paying the third and fourth phases on time and in full.
Speaking on RTE radio this afternoon, Mr Fitzpatrick said: "last week the chief executive told the nation that he was putting up the prices of line rental in order that he could pay his staff the national agreement, now he's saying he can't pay it and I think the public are entitled to know why he put up prices and gave one reason and now refuses to deliver on that reason".