DELEGATES to the Communications Workers Conference in Tralee today will be told their union has agreed to radical changes in work practices at Telecom Eireann, 2,500 voluntary redundancies and cost cuts of £110 million over five years. But they will also hear that this depends on the company and the Government agreeing to a major employee share option scheme.
The Telecom Partnership agreement is the most revolutionary ever negotiated between a union and a major company in Ireland. It says the alternative to having staff as part owners is a return to industrial conflict and "a zero sum game for everybody".
But either side may give three months' notice if it wishes to with draw. The idea is that the threat of a return to the "zero sum game" will help ensure that management and union make the system work.
A key proposal is that 500 redundancies proposed among the 11,500 staff would all be voluntary. The company had originally sought 4,500 redundancies and there had been speculation it might want as many as 6,000, although this figure was never put on the negotiating table.
While most Telecom staff transferred from the Department of Posts and Telegraphs 13 years ago and, as established civil servants, are safe from dismissal, there are about 2,000 younger employees without that security. The agreement, if ratified, would provide some projection for these workers.
One reason for the reduced redundancies is that the agreement is based on the tenet that "the unions will seek to accommodate change proposed by the company, provided the company equally seeks to resolve the problems identified by the unions from the change".
This means that many Telecom workers who might have been made redundant will be offered "a typical" or part time/seasonal work. The Finance Bill has specific provision for such arrangements by companies carrying out significant restructuring of its workforce. Under these employees can receive tax relief of £10,000, where earnings are reduced.
Another new element in the deal is that disputes will no longer be dealt with through traditional Civil Service style conciliation and arbitration procedures, but by referral for arbitration to the Labour Relations Commission and Labour Court, where necessary.
. The MSF union will advise its 300 members on strike at Irish Life to accept a settlement formula in the 13 week old dispute. The strikers meet in Portlaoise tomorrow to consider a proposal that the Employer Labour Conference be asked to give binding arbitration. The company has agreed to accept the proposal.
. The Labour Court may issue a recommendation to end the 10 day old strike by paramedics in the health services late this evening. It did not bring in their union, IMPACT, or management representatives for any further talks today.