A CHALLENGE to the authority of the Government is brewing at the ESB where trade union representatives are threatening strike action if steps are taken to sell a minority stake in the company.
There is a requirement to raise at least €2 billion through the disposal of State assets under the terms of the EU-IMF bailout agreement and the Government hopes that some of this money can be used for job creation. Various assessments and negotiations will take place before final decisions are taken in a few months time. The outcome must, however, safeguard the long-term interests of the State and its citizens.
Privatisation of the telephone network 12 years ago, the subsequent plunder of the company by financial interests, and their failure to invest in new technology provides the Government with hard evidence of the risks involved in disposing of State assets. Unlike the Telecom debacle, however, where the entire company was sold off, the Government intends to retain a majority stake in the ESB and in the distribution network. Minister for Energy, Communications and Natural Resources Pat Rabbitte is clearly uncomfortable about the exercise and has expressed concern about protecting the strategic needs of the State.
Regional secretary of trade union Unite Jimmy Kelly has threatened industrial action if the Government proceeds with its plans and a ballot of ESB workers has already been agreed. He did not accept the ESB had to be sold and said his members would defend their wages and conditions. It is at that point that the general public is likely to part ways with Mr Kelly and reject his defence of what Unite’s group secretary in the ESB, Brendan Ogle, recently described as a “spoilt” workforce.
Governments have bought industrial peace at the State’s electricity monopoly for the past quarter century and what were once good jobs are now well- remunerated great jobs. On top of that, employees were granted 5 per cent of the company. Money, you could say, for old rope.
It doesn’t stop there. Pressed by the European Commission to foster competition and separate the transmission system from the generating network, the last government was thwarted in its efforts by ESB management and unions. When public service pay was cut by the government, commercial State bodies remained untouched. ESB employees actually received increases. Their behaviour at a time of national economic crisis was on a par with that of a minority of selfish judges who refused to share the public’s burden.
An expert group has been appointed by the Government to advise it on the ESB sale; the timing, the scale and the revenue that might be raised. It will report by the end of November. In the meantime, discussions will take place with members of the EU-IMF troika on whether some of the money can be devoted to job creation. A positive response to that request may lead to a formal announcement in the December budget. One way or another, confrontation over control of the electricity network appears inevitable.