TELECOM Eireann workers will lose one seat, instead of two, on Telecom's board, under proposals to be put to the Dail this morning. There are currently four worker directors on the board, but this was to have been reduced from four to two as part of the KPN/Telia strategic alliance.

The move has provoked stiff opposition from the Communications Workers Union (CWU) which has been fighting the reduction of its board representation. Under new proposals put forward by the Minister for Transport, Energy and Communications, Mr Lowry, the number of worker directors will be reduced to three.

It is understood that the proposal will give Telecom employees a third seat, but their representative will not have voting rights. The amendment will be introduced at the Report Stage of the Telecommunications Bill, which will be taken in the Dail this morning.

The Telecom board currently numbers 12 members. As part of the strategic alliance, KPN and Telia will have three board members.

If the four worker directors were left in place, the Government, as the majority shareholder, would not have had a working majority, the Department argued.

It is understood that negotiations between Telecom officials and the CWU, which have gone on for several weeks, have been very difficult. The Government is said not to have been in favour of increasing the board, because it felt that it could operate better at its current level.

The Report and Final stages of the Bill will be debated today. KPN/Telia is paying £183 million for a 20 per cent stake and has an option to acquire a further 15 per cent in three years.

Fianna Fail spokesman on Telecommunications, Mr Seamus Brennan, will argue again that the stake was sold off too cheaply. He has also tabled a motion that the number of worker directors should be maintained at four.

The Minister of State at the Department of Transport, Energy and Communications, Mr Emmett Stagg, is steering the Bill through the Dail on behalf of Mr Lowry.