ESB meets Rhode staff ahead of plant vote

ESB managers met staff at the defunct power station in Rhode, Co Offaly, yesterday ahead of a vote next Friday on a €20 million closure package.

While there is still no firm indication about the likelihood of the package being passed, the meeting took place amid indications that the matter would revert immediately to the ESB board if the package was rejected.

Workers have been urged by the Technical, Electrical and Engineering Union to accept the package proposed by the ESB's joint industrial council last month.

But they have rejected previous attempts to break the deadlock, citing worries that they may become ill at some future date due to asbestos exposure. The ESB has claimed that this "health" issue should be addressed in isolation from the industrial relations process.

No electricity has been produced at Rhode since an explosion in May 2001. Yet up to 100 "workers" have clocked in every day since then at a cost of €60,000 per week to the ESB, or €6.24 million in the two years to the end of next May, the closure deadline set by the industrial council.

With up to 80 staff considered likely to leave if the deal is accepted, the package is believed likely to be worth an average of about €250,000 each over 10 years. That suggests the deal would cost the ESB some €20 million in the 10-year period, if accepted, in addition to the €6.24 million spent keeping the defunct plant open for two years.

However, the company argues that the "more accurate" figure required to secure closure would be in the region of €4 million, reflecting only the ongoing payment of staff's full salary for 11 months after the closure, an additional upfront net payment of €5,000, and payment of a taxable lump-sum equivalent to one year's salary after 11 months.

This element of the package exceeds the conditions of the PACT restructuring programme, which was designed to improve profitability through a reduction of staff numbers by 2,000 to 6,000. Funded through a €381 million exceptional charge in 2001, the programme was designed to be self-financing through the creation of efficiencies.

At the end of the 11 months, the Rhode staff would receive the PACT terms, guaranteeing ongoing payment of half their salary until the retirement age of 60, after which they will receive a pension worth half their salary. In addition, they would receive another lump sum, equivalent to a year's full salary at age 60.