Union backs Telecom shares deal

Members of IMPACT have overwhelmingly endorsed Telecom Eireann's Employee Share Ownership Plan

Members of IMPACT have overwhelmingly endorsed Telecom Eireann's Employee Share Ownership Plan. The union, which represents managers, engineers and draughtsmen, is the first to announce a ballot result on an offer that will see 14.9 per cent of shares transferred to staff.

Under the plan 9.9 per cent of shares, worth £190 million, will be transferred to a unionsrun trust. Telecom will pay £100 million towards the cost and the trust will raise £60 million through loans. Payment for the remaining £30 million will depend on the value of the shares next year. A further 5 per cent of shares, with £95 million, will be transferred to the trust in return for productivity and other improvements.