Eircom will enter immediate substantive talks with its unions to resolve the long-running row over compensation for 1,200 employees who are to transfer to Vodafone with Eircell. In the meantime, all unofficial industrial action is to cease.
The breakthrough came in talks between senior management and union leaders yesterday, after which both sides were hopeful that the current deadlock could be resolved. Until terms are agreed for the departing Eircell staff, the disposal of the mobile phone subsidiary is blocked.
And until Eircell is sold, there can be no progress in the sale of the rest of Eircom to eIsland, which last night confirmed that the latest approach valued the non-mobile business at €1.10 (£0.87) per share.
It is understood the consortium, led by Esat's founder Mr Denis O'Brien, has ruled out any increase in that figure if it makes a full offer. However, that sum will increase to account for Eircom's debt, once a due diligence process is completed.
Although the unions are in a strong position to ensure a package for the Eircell staff, they must be aware of the damage the dispute is having on the overall image and value of Eircom. They must also realise that the real battle will be to protect the pay and working conditions of the remaining 10,000 employees.
The unions are not thought to have moved from their opening stance of seeking around £45 million for the 1,200 Eircell staff leaving Eircom. Eircom has proposed Eircell staff could remain in the employee share option plan (ESOP) after transferring to Vodafone. The other preferred management option is to accelerate allocation of the tranches so that Eircell personnel can take them with them. However, the unions argue that this would breach ESOP rules.
