ESB staff cast votes to put their men on the board

ESB staff have voted in a crucial election of workers to its board. The poll could have a significant bearing on the Government's prospects of privatising the State electricity group, as unions have previously blocked a flotation plan.

There is no policy as yet to sell off the ESB but informed observers believe the Government will attempt to realise up to €3 billion by privatising the group later on in the current term.

ESB managers backed a flotation plan two years ago but it was shelved after unions blocked it, stating that their "considered view" was that the group was not ready. They also publicly criticised the quality of ESB management.

This was a strong reflection of the trade union movement's power within the ESB, where staff could plunge almost the entire State into darkness if they took industrial action.

Staff already own 5 per cent of the group. Worker directors hold four of the 12 seats on the board and one, Mr Joe LaCumbre, is currently deputy chairman.

There are six candidates in the latest election for four board positions for five years. Some 8,500 staff were polled and the votes will be counted next Thursday.

The candidates include three existing worker directors - Mr LaCumbre, Mr John McGinley and Mr Pat Smith - in addition to Mr Eamonn Connolly, Mr John O'Connor and Mr Gerry Talty. Another current worker director, Mr Seán Geraghty, did not stand.

Certain candidates made a strong play of their views on privatisation.

Mr LaCumbre, of the Technical Engineering and Electrical Union, said his price for privatisation was a 15 per cent stake in the company in addition to the 5 per cent stake they already hold.

His manifesto said: "No doubt there will be a tradition shock-horror response but ESB staff don't and won't need to apologise to anyone for their entitlement of a 20 per cent share in the company."

If the ESB was worth €3 billion, the 15 per cent stake Mr LaCumbre seeks would be worth €450 million.

But this stance is similar to that adopted by the IMPACT union at Aer Lingus when it was being prepared for a flotation that was ultimately cancelled. The Government refused to give more 14.9 per cent of the airline to staff.

Yet this demand was supported by the SIPTU candidate, Mr Talty.

He said: "The Government must know that the company was built by the combined efforts of staff at all levels within the workforce and consequently it should not be price-tagged at an inadequate 14.9 per cent."

Other candidates were more moderate.

Mr Connolly of management union Amicus said privatisation should be resisted if its "sole purpose" was to fill a hole in the public finances.

Mr O'Connor of the ATGWU did not share the view that worker directors had a right to decide on matters unilaterally, particularly in relation to ownership.

Mr Smith, also of the ATGWU, said: "ESB management must be made realise at all times that the staff matter most or the strategies and objectives will never be achieved."

Mr McGinley of the clerical ESBOA union said he would continue to fight "internal as well as external threats" to the ESB's stability.