Trade unions at Eircom intend to bid for another 5 per cent of the company when overseas telecom firms KPN and Telia sell their 35 per cent share. At current market values, the move could cost around £350 million (€444 million).

Mr Con Scanlon, general secretary of Eircom's largest union, the Communications Workers' Union (CWU), has told The Irish Times that he does not anticipate any opposition from the company board. Its consent would be required for the necessary changes to the deed of trust under which company employees currently own 14.9 per cent of Eircom.

The trustees, who include former Labour Party leader Mr Dick Spring, would also have to approve the changes.

Any other company can only buy 29.9 per cent of Eircom unless it wishes to bid for all the shares. As 35 per cent of the shares are being sold by KPN and Telia, this will leave 5.1 per cent of the company to be sold elsewhere, provided Eircom does persuade a strategic investor to take a 29.9 per cent stake. This has provided the opportunity for the union to bid to raise its stake.

Mr Scanlon and his predecessor as CWU head, Mr David Begg, played leading roles in negotiating the original ESOP (Employee Share Option Plan) deal. Under this, a trade union alliance within what was then Telecom Eireann paid the equivalent of £285 million for their shareholding.

However, 5 per cent of this was paid for through radical changes in work practices, valued at around £95 million. Another £100 million was funded mainly through new pension fund contributions and foregone bonuses. The alliance only had to borrow £90 million.

As the shareholding is now valued at £1.9 billion, or between £90,000 and £100,000 per employee, the unions believe it should be relatively easy for them to raise a further loan if required.

The move by the Eircom unions will be seen as a vote of confidence in the company's future by the workforce.

Mr Scanlon says that the size of the employees' stake in Eircom has radically transformed attitudes towards change. But he also said the union was actively recruiting members in other communications companies competing with Eircom and An Post, such as Esat Digifone and UPS.

He was scathing in his comments on the role of the telecoms regulator Ms Etain Doyle in controlling competition. "It is time she took her foot off Eircom's neck," he says. "Her approach is very heavy handed and no-one is being penalised except Eircom. It might have been necessary at the start, but not now."

He believes there would be "uproar" if the company's 350,000 shareholders realised the commercial constraints she had applied to Eircom.

On the future of An Post, Mr Scanlon says an ESOP within the company would only be worth around £2,000 to £3,000 for employees. He envisages a deal being concluded next month.

The CWU is to mount a lobbying campaign with all the political parties to win support for a policy of preserving rural subpost offices as an essential part of the State's social infrastructure.

Commenting on the current crisis in talks on a national agreement, Mr Scanlon says the CWU would be well able to survive in a free for all but would prefer a new wage agreement.

"This isn't just about pay. There are a lot of quality of life issues which are important to our members and others as well."