The ESB has concluded a deal with its 2,500 network technicians, opening the way for it to complete its £2.2 billion investment programme on infrastructure. There is now only one group left to conclude negotiations on the company's Programme for Action on Competitiveness and Transformation (PACT) - the 500-strong maintenance section in the company's power stations.
As with the network technicians, the main stumbling block in talks at Powergen, the power generation division, is the contracting out of work. Fitters within the power stations had a preferential deal for allowing in outside contractors.
This must now be integrated within overall company pay structures.
Meanwhile other groups, including network technicians, will begin balloting on the PACT immediately. It will deliver increases worth 21 per cent over the next year, on top of the Programme for Prosperity and Fairness.
If the ballots are completed by June 30th, staff will receive increases of 10 per cent backdated to June 1st and a further 6 per cent in a year, provided PACT targets are met. These include 2,000 redundancies and £100 million a year in savings on operating costs.
Another 5 per cent increase will also be paid next year based on company profits, bringing the total to 21 per cent.
The Government has already agreed to give the workforce 5 per cent of the ESB under the former Cost and Competitiveness Review, made in 1996. Legislation to provide for this is being enacted.
A spokesman for the company paid tribute yesterday to the negotiating teams for all 35 categories. He described the breakthrough with network technicians as "proof that partnership works".