Cost Base Issues

Throughout 2011 ESB has consistently maintained that there is a serious cost base issue for the company.  This is despite the company having made operating profits of €339 million in 2010.

ESB wants to engage with the Group of Unions to discuss the issue with a view to cutting payroll costs and talks are due to commence in September 2011.  The unions’ position is that they are willing to look at the issues but need to be convinced that there is a real problem with the company’s cost base.

In the past there were Voluntary Severance Scheme (VSS) packages in place to facilitate reduction in the number of employees and thereby bring about reductions in payroll costs.  Currently, there is no VSS available.  There is also a generally held view that if a new VSS package is made available it may not be quite as attractive as previous packages as it may be more difficult to get Government’s approval for similar conditions in the current climate.

By now, most outstanding payments arising from different agreements have been made with the exception of the Pay for Performance remuneration for P&MM contract holders.  As many of ESPA members are in that category ESPA is resolutely pursuing this issue through the established IR mechanisms.