Eircom staff will be asked to take voluntary pay cut

EIRCOM WORKERS are to be asked to take voluntary pay cuts that will last until June 30th, 2011. In addition, no performance-related bonuses will be paid over the same timeframe.

Individual letters will be sent out shortly to Eircom’s 7,000 full-time staff and those on contract “inviting a pay reduction”.

The company is seeking to implement the voluntary pay cuts from May as part of a plan to save €113 million a year. By law workers have to volunteer for pay cuts.

Eircom’s unions have opposed the proposed pay cuts. The CPSU, which represents about 250 staff at Eircom, yesterday advised members that “nothing has changed” in relation to its stance on the pay cuts and said no talks should take place between individuals and the company.

One union official advised members that they should consider “consigning to the bin” any unsolicited letter requesting that they sign up for the pay cuts.

The pay reductions are being applied on a sliding scale from 5 per cent for those earning under €60,000 a year up to 10 per cent for those on more than €100,000 annually.

Eircom has told workers that pay will be restored to current levels at the end of June 2011 but no arrears will be paid.

The reduction in pay will not affect pension contributions, which will be maintained at current levels. Increments will also be paid during the period.

It is not clear what action Eircom will take if staff refuse to volunteer for the pay cuts.

A spokesman for Eircom said they would have to be found from non-payroll costs and a reduction in headcount if necessary. He said letters would be issued to staff on a phased basis, and Eircom hoped to have them signed and returned by the end of April.

Eircom’s executive and senior management have already accepted a 10 per cent pay cut until mid-2011.

Separately, Eircom yesterday announced that former Dell Computers executive Nicky Hartery and Andrew Day, chief executive of Babcock Brown Capital, have been appointed as non-executive directors to its board.