A pay agreement, concluded in late April 2001, worth 21% in excess of the basic terms of the current three-year national agreement, the Programme for Prosperity and Fairness [1] (PPF) (IE0003149F [2]), should allow the state electricity company, ESB, to move ahead with a stalled IEP 2.1 billion investment programme (IE0004210N [3]).[1] http://www.irlgov.ie/taoiseach/publication/partnership/default.htm[2] www.eurofound.europa.eu/ef/observatories/eurwork/articles/undefined/irish-social-partners-endorse-new-national-agreement[3] www.eurofound.europa.eu/ef/observatories/eurwork/articles/electricity-company-faces-major-pay-claim-and-job-cuts
Under a deal reached in April 2001, over 7,500 workers at Ireland's state-owned electricity utility, ESB, are to receive staged pay increases worth up to 21% on top of the basic rises allowed under the current three-year national agreement, the Programme for Prosperity and Fairness.
A pay agreement, concluded in late April 2001, worth 21% in excess of the basic terms of the current three-year national agreement, the Programme for Prosperity and Fairness (PPF) (IE0003149F), should allow the state electricity company, ESB, to move ahead with a stalled IEP 2.1 billion investment programme (IE0004210N).
While the pay increases have been formally agreed, ESB management and trade unions are currently locked in intensive talks on "change" issues aimed at altering work practices, boosting productivity and agreeing a major redundancy package. Up to 2,000 jobs are set to go over the next two to three years as the company trims its 7,500-strong workforce. An estimated 1,200 of the job reductions will come in the overstaffed power generation area, due to the closure of outmoded peat stations, mostly in the midlands (IE9912201N).
The pay agreement is set to be implemented on a phased basis, starting in June 2001. It allows for an overall increase in basic pay in two phases of 10% and 3%. There will also be a separate 3% bonus payment which will not be added to basic pay, and a final payment of 5% of annual profits (2% is payable as a minimum). Finally, there is to be an immediate "lead-in" payment of IEP 2,250 per employee.
These increases do not include the 17%-18% total pay rise over 33 months which comes under the formal ambit of the national PPF agreement. This means that over the same period, wage costs in ESB are now set to rise by almost 40%. The company hopes that the redundancy arrangement and the changes currently under negotiation can be offset against the wage rises.
Commentators agree that the company was forced to settle. One key group of workers, the network technicians, had already rejected a pay rise of 18% on top of the PPF's terms (IE0102231N). This dispute had threatened to erupt in industrial action. It also had the potential to hinder major infrastructural development projects planned by the government, which are essential for further industrial and social development.
Eurofound recommends citing this publication in the following way.
Eurofound (2001), 21% pay for change deal at ESB, article.
