TALKS on the purchase of 14.9 per cent of Telecom Eireann by its 11,500 employees have broken down. The unions are now expected to withdraw co-operation from the company's £110 million cost-saving plan aimed at preparing it for competition. Telecom unions, officials of the Department of Transport, Energy and Communications and senior Telecom officials had been involved in intensive talks all week, but yesterday's deadline passed without agreement.
A spokesman for the Minister for Transport, Energy and Communications said last night that Mr Dukes was urging the unions to resume talks as soon as possible. However, the general secretary of the Communications Workers' Union, Mr David Begg, said that he did not believe there had been the will to "do a deal".