ESB workers have voted overwhelmingly to accept a once-off payment of £2,000 each, based on the higher-than-expected profits the company has made since 1997. The award will cost the company £16 million.
The workers had originally sought 10 per cent of the excess profits generated by the ESB since the introduction of the Cost and Competitiveness Review in 1996. The review had envisaged profits of between £60 million and £65 million, however, the outcome in 1997 and 1998 totalled £360 million.
On this basis the workers called for distribution of the £300 million surplus. They also wanted the payments to be made ongoing.
However, a joint industrial council of the ESB, on which unions and management are represented, decided on a once-off five per cent allocation to the workforce. One of the main reasons it gave for the reduced payout was that under the CCR, a significant element of the company's profits were to be set aside to purchase a 5 per cent shareholding in the company for employees.
The result of the ballot was announced formally by the secretary of the ESB group of unions, Mr Paddy Reilly, who welcomed the outcome. The general secretary of the ESB Officials Association, Mr Willie Cremins, also welcomed the result.
Mr Cremins said the profitsharing claim was part of a strategy to ensure a return to workers from the gain-sharing elements of Partnership 2000. He added: "We feel strongly that the good performance of the ESB should be on a continuous basis and we will be looking beyond this award to see that happens in the future."
The outcome of the ballot should also help to clear the way for talks on change within the ESB. It is now widely realised that further cutbacks are needed to prepare the company for competition.
However, there have been serious difficulties in introducing changes, particularly within the power generation division which is responsible for power stations.
Claims by workers overhauling Moneypoint recently led to them receiving overtime payments of significantly more than their basic pay. Some day workers at the plant will earn between £50,000 and £60,000 in wages this year as a result.
Any progress in talks to reduce the company's wage costs are unlikely to make much progress until the nurses' dispute is resolved. Any large increase in pay to nurses will be as destabilising in the semi-state sector as in the public service.