Worker directors fight board changes

A GROUP representing employee directors on semi state companies has set up a "political committee" to fight against the reduction of employee representation on the board of Telecom Eireann.

The Worker Directors Group of the ICTU is "unanimously opposed" to the reduction in the number of employee directors planned as part of the strategic alliance between Telecom and KPN/Telia, according to Mr John McGinley.

Mr McGinley said the group was autonomous within the ICTU and represented 62 employee directors in 17 state companies. It wants the Telecommunications (Miscellaneous Provisions) Bill, which is currently on its way through the Oireachtas, changed so that the current level of employee representation on the board of Telecom Eireann is retained.

Under the provisions of the Bill the number of employee directors on the 12 member board will be reduced from four to two. "If the price of strategic alliance is a diminuation of worker representation on the board, then the price is too high," Mr McGinley said.

The change to the board would be in contravention of the ideas put forward on partnership during the recent ICTU conference, Mr McGinley said.

"They said they wanted worker representation to spread through the private sector, but if we re going to see a reduction in the number of workers on state boards, we're hardly likely to see any representation at all in private sector companies."

The Minister for Transport, Energy and Communications, Mr Lowry, introducing the legislation, told the Dail he was aware of the "possible implications" from an employee representation point of view of the reduction in worker representation.

"However, this solution was driven by the need to preserve effective control of the state's majority shareholding, the representational interests of the strategic partner, the objective of maintaining a small to medium sized board for the purpose of effective governance, and the need to have meaningful employee representation at the key decision making forum."

Mr Lowry told the Dail that KPN/Telia was to have three directors on the 12 member board. It had been decided that the number of employee directors would not exceed one third of the number the Minister was entitled to appoint.

"I am however, open to any suggestions, proposals or amendments that may emerge from consultations with the trade unions involved and interested parties, as to how the employee issue could evolve."