ESB Wages
- Thread starter SteveW9
- Start date
Under TUPE Regulations employees Terms & Conditions are protected when their employment is transferred from one employer to a new employer ...... and of course the company is hugely unionised which is a major advantage when it comes to protecting terms & conditions.
Given that the new owners will only have a minority stake I doubt if the can do much for existing staff. They could decide to implement new T&Cs for new staff coming in so that in time, the impact of existing T&Cs are lessened. Note as well that be selling a minorty stake it is doubtful if TUPE would apply, since the employer is still the ESB.
The only way changes can occur with existing staff is either under negotiation with the unions or to try and force them through at the risk of a strike. Govt will not want the latter.
However, what new owners might try to do is clear out the management who negotiated and agreed such deals in the past
The only way changes can occur with existing staff is either under negotiation with the unions or to try and force them through at the risk of a strike. Govt will not want the latter.
However, what new owners might try to do is clear out the management who negotiated and agreed such deals in the past
Eircom is a different kettle of fish because of ESOP. The employees of Eircom have had tax free payouts worth hundreds of millions to them since privatisation.
Why not? I thought ESB (and Bord Gas) were profit making.
The Employee Share Ownership Scheme has paid out out €627 million to date - certainly enough to soften the 10% pay pay cut in 2011 ( the only pay cut to date ).
Even that pay cut was introduced via a decrease in working hours - Eircom employees only work 9 days per fortnight now.
TUPE applies whether all or part of a business is transferred - even if such were not the cases & if the ESB remained as employers then T & C's would remain unchanged.
They are profitable but not so profitable that you would have the largest energy companies rushing to invest a couple of billion to own a minority stake of a company where the Government would own 67% which brings it's own political pressures. You will be minority shareholder looking to maximise dividend payouts against a majority shareholder who might not share the same objective (historically the ESB have been poor at paying dividends to the State because they had to invest in politically driven projects). And of course you have a highly paid workforce who would seek to protect T&C's and who also own some of the company through an ESOP. (Think they own 5%)
It depends on how the sale is handled. If, for example, they sold say 5 power stations, then the likelihood is that stiaff in those power stations would be covered under TUPE. However if they sold 20% of the entire ESB to a new investor, Tupe may not apply as the ESB would still be the employer.
The asset stripping of Eircom (which happened under the union's watch) might cool the heels of anyone wanting to sell-off a majority ESB stake. It's not neccessarily a good thing. Altho I would love to see the lard sliced off the backsides of the ESB workers.
the ESOP certainly softened the blow but eaten bread is soon forgotten! They were'nt given much choice on taking the 10% pay cut, even if it's only to last for 18 months (or so it says right now).
Plus there has been huge staff reductions and no replacements even in some critical roles. Unions not fighting that either
Still on the bright side the working hours have also been reduced by 10% , 647 million is a hell of a sweetener ( 647 million ! - I always have to pinch myself when I see that figure ) for the ESOP members & a promise exists to reverse the pay cut & the reduction in staff numbers have been achieved on a voluntary basis in very difficult times - all in all not a bad achievement by the Unions & Management involved.
Anyway back on thread - the ESB are in a hugely different financial position to Eircom & as such comparisons are largely invalid.
The fact that EIRGRID wasn't seperated from the ESB is a national disgrace. I hear Gilmore on newstalk this morning and Rabbit on yesterday waffling about it and I realise that nothing has changed in this backwater of ours, where public 'services' are run for the benefit of employees and not for the public.
You'd think they would have learned from Eircon (sic).
But no, we join Greece and Latvia as the three countries in the EU who haven't separated their grid from power genaration. I pray Europe will save the Irish people from this, but I fear they won't interfere.
And then they want to electrify rail and motor transport - handing the ESB monopoly even more power to shut down the country when they please! No company, private or public should have this power. No company.
And yet what we hear is 'The government have made a decision'.
Well, this being the caliber of their decisions there is only one way this country is going. Every increase in tax to pay these people to continue making the same terribly policy decisions year after year, government after government just gauls me. The sheer hopelessness of it all. If they haven't learned by now, even after all this termoil, then is it time to just throw up our hands and join them?
You'd think they would have learned from Eircon (sic).
But no, we join Greece and Latvia as the three countries in the EU who haven't separated their grid from power genaration. I pray Europe will save the Irish people from this, but I fear they won't interfere.
And then they want to electrify rail and motor transport - handing the ESB monopoly even more power to shut down the country when they please! No company, private or public should have this power. No company.
And yet what we hear is 'The government have made a decision'.
Well, this being the caliber of their decisions there is only one way this country is going. Every increase in tax to pay these people to continue making the same terribly policy decisions year after year, government after government just gauls me. The sheer hopelessness of it all. If they haven't learned by now, even after all this termoil, then is it time to just throw up our hands and join them?
This is correct but TUPE does not apply when some or all of the shares are transferred which is what is being considered in this trade sale. It the exact same company it just has a different set of owners. think of it like this : would you expect TUPE to apply every time a share was traded on the ISEQ or FTSE?
If ESB were to sell all or some of ESBI for instance then the terms of TUPE would apply (& note TUPE does not cover pension arrangements).
Thanks for the clarification.
So am I right in thinking that if shares are transferred that the effected employees terms & conditions including pensions will remain unchanged as the ESB will remain as the employer ?