Employees at the ESB have voted to accept pay reductions that will save the State energy firm some €140 million annually.
The ESB has welcomed the move which will see a reduction in staff numbers of 1,000 through a mix of voluntary redundancy and retirement between now and 2015.
The company is seeking 703 voluntary redundancies and intends not to replace 294 workers due to retire between this year and 2015. Staff numbers will be cut to a total of 5,700 from 6,700.
The ESB hopes the job reductions will save €83.6 million a year. It wants to save a further €56.4 million through measures such as cutting overtime, ending performance-related pay for staff, managers and executives, and reducing subsistence payments.
The €140 million in cuts that the company is seeking amounts to 20 per cent of its €700 million payroll cost.
The ESB’s group of unions, made up of Unite, the ESB Officers’ Association, TEEU and Siptu, balloted members on the package on March 30th after holding a series of meetings with workers around the State to debate the proposals.
“The payroll and wider cost reduction programme within the company including non-payroll elements will result in a €280m reduction in ESB’s cost base by 2015,” the ESB said in a statement.
“This will ensure that the company can continue to invest in national critical infrastructure while remaining competitive in electricity and gas markets”.