Leaders of Eircom's largest union have severely criticised the company's chief executive, Mr Alfie Kane, and other senior management for their performance since the company was privatised. They said staff had lost confidence in management.

The president of the Communications Workers' Union, Mr Paul O'Rorke, and its general secretary Mr Con Scanlon reiterated the intention of the unions to increase their current 14.9 per cent shareholding significantly.

They were both speaking at the opening session of the CWU's annual conference in Tralee yesterday. Relations between Mr Kane and the unions have been poor for some time. The comments by Mr O'Rorke and Mr Scanlon reflected the feeling of the vast majority of delegates at the conference. They raise serious questions about Mr Kane's long-term future as chief executive. Mr O'Rorke said the sale, currently under way, of the mobile phone subsidiary Eircell to Vodafone, was "a panic reaction" by Mr Kane, "prompted by stinging criticism directed at himself by the a.g.m."

Referring to the overall performance of senior management, Mr Scanlon said: "The big question on everyone's lips in Eircom is `Do they know what they are doing?' Generally there is little confidence among staff that they do."

Announcing maiden results less than a year ago, Mr Kane had used the opportunity to outline plans to expand operations in the UK, invest in the multimedia business, expand data and Internet services and deploy new technology in the lead-up to 3G operations, Mr Scanlon said. Mr Kane had also said Eircom would reposition its fixed-line business by providing broadband access to local subscribers. "Less than one year later the chief executive's strategy lies in ruins. The company has effectively quit the UK market and it has scaled back significantly on its multimedia ambitions. The DSL [high speed digital subscriber lines] programme is being curtailed. Eircell, the jewel in the crown, is to be sold to Vodafone and the remaining business is in play with a number of suitors lining up.

"In an era where top executives are rewarded based on performance and achieving targets, I think that ranks as some performance."

A spokesman for Eircom said yesterday: "Every telecommunications company across Europe is rethinking its strategy. Eircom has been very proactive in addressing the realities facing the sector and adjusting accordingly."