THE Communications Workers' Union puts a long term value of nearly £475 million on the transformation plant it has negotiated with Telecom Eireann.
This is why there is such anger among members at the apparent refusal of the Government to agree to them receiving a 14.9 per cent share in the company.
So far the Minister for Transport, Energy and Communications, Mr Dukes, has told the union he is prepared to give it 5 per cent of the company in return for changes in work practices that will help the competitive development of Telecom. He is prepared to sell a further 5 per cent to them at full market value.
A further 5 per cent may also be available for purchase if Telecom's new strategic partner, KPN/Telia, is willing to sanction the sale. KPN/Telia owns 20 per cent of the company and has an option on another 15 per cent.
The CWU argues it is willing to finance its share through a range of measures. These include agreement to co fund the company pension scheme, which is currently non contributory, forgo future cash dividends and agree to the elimination of existing bonus schemes, which are worth around £1,000 per year to each employee.
But the biggest savings of all would accrue from the total flexibility in industrial relations agreed between unions and management last weekend.
Under this package, the CWU is conceding 2,500 redundancies agreeing to continuous training and skill enhancement for staff and atypical working.
Staff will also extend current five day working cover to six days and provide services to the public from 8 a.m. to 8 p.m.
The company hopes to make cost savings of £110 million over five years from these concessions.
Details of the financial components of the package on offer by the union are confidential. But it is understood the union puts a value of around £200 million on the total flexibility on offer.
It values the co funding of the pension scheme at another £210 million.
The offer to eliminate bonus schemes would save the company £50 million, according to the union, and forgone cash dividends would save it another £15 million.
KPN/Telia paid £183 million for its 20 per cent share in the company. The CWU says it is prepared to give savings worth £136 million for 14.9 per cent. The hulk of this would be through agreeing to cofund pensions for 15 years.
This would be worth £120 million, discounted at current values. The balance would come from staff agreeing to forgo cash dividends over two years, netting savings for Telecom of around £15 million.
The balance of the savings would be available in the longer term, if the Government was willing to agree that the union would he able to increase its investment at a later date should Telecom issue rights issues, restructure or privatise.