Unions urge staff to shun Eircom redundancy package

Workers at Eircom have been advised by their trade unions not to co-operate with a €66 million voluntary redundancy programme until the result of a strike ballot is known.

Unions at Eircom are in dispute with the company over its failure to implement a 2 per cent pay rise on May 1st, which was due under the terms of Towards 2016.

Unions have also refused to sign a "memorandum of understanding" with Eircom, arguing that it would lead to radical changes in work practices.

Strike ballots are currently taking place and the results are expected on Monday next.

Eircom is seeking 400 voluntary redundancies by the end of this year. The average payout to workers is expected to be €165,000.

Details of the redundancy programme were released on Monday by Eircom to 360 staff in its central services unit, which includes human resources, finance, communications, pricing and regulation.

Eircom is seeking about 100 job cuts in this area. The closing date for applications is August 3rd and the last day of service must be September 21st.

Staff in its retail and wholesale network divisions will receive details of the redundancy programme in the coming weeks.

Steve Fitzpatrick, general secretary of the Communications Workers Union (CWU), said members have been advised not to co-operate with the redundancy programme.

"Our advice to members is that they shouldn't engage in this process until this [ dispute] has been resolved by the company," Mr Fitzpatrick said.

The CWU represents more than 5,000 staff at Eircom and will announce the result of its strike ballot on July 9th.

The Civil Public & Services Union has issued similar advice. In a note to members on June 29th, assistant general secretary Kevin Gaughran said employees "are advised not to co-operate with this [voluntary severance programme] in any way, pending the outcome of the CPSU ballot for industrial action".

Impact and the Public Service Executive Union also represent workers at Eircom.

The latest severance deal offers workers with five to 10 years of service a lump sum of €140,000, a flat payment of €4,000 and access to their pension at age 60.

For those with 10 to 20 years service the flat payment rises to €8,000.

Workers with 20 to 30 years of service are being offered a lump sum of €100,000, a flat payment of €20,000, one year's basic salary, and €750 per year of service. They also get access to their pension and a lump sum from their retirement fund at 60.

Staff with more than 30 years service receive reduced lump sums but get pension top-ups.

Eircom said all of the unions have been informed about its latest voluntary leaving plans.