A key ESB committee has been asked to examine the future of the ESB's 54 retail outlets which are coming under increasing competitive pressure. The powerful joint industrial council, which includes union and management representatives, is expected to discuss future options for the ESB shops early in the new year and a recommendation will follow.
An ESB spokesman maintained yesterday that no decision had been made yet. However, a statement said the shops represented "a low-margin business competing in a very crowded market".
The ESB's traditional policy of no compulsory redundancies is likely to be maintained regardless of what happens to the shops. Staff are likely to be redeployed or offered a voluntary redundancy package instead.
About 250 people work in the outlets, selling mainly household appliances. ESB customers are also allowed to pay their bills at the outlets.
The union representing staff, the ESBOA, said it would be taking part in the discussions at the joint industrial council.
The ESBOA's general secretary, Mr Tony Dunne, said strategic mistakes had been made by management regarding the shops but, not withstanding this, his union would participate fully in talks.
"Provided the right decisions are taken, we believe the shops can, in a rationalised form, succeed into the future," Mr Dunne said.
It is understood revenue at ESB Retail has come under serious pressure in the past year, with increased competition from chains such as Power City, Dixons and Currys. A number of supermarket chains are now also selling electrical goods.
According to sources, while management are eager to exit the business, a compromise is likely to emerge. Sources speculate that 15-20 shops may be maintained, with the rest closed.
The ESB is increasingly anxious to exit businesses that do not fit its core activities of electricity generation, distribution and supply.
It is in the middle of major industrial relations negotiations. The issue of the company's €500 million pension fund is continuing to pre-occupy management and union negotiators.
It is believed unions want the company to increase its pension contribution to make up the shortfall, although some union representatives are willing to look at some alternative mechanisms to help management.
