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Bord Gais Energy may have spent up to €300,000 on luxury office chairs

Dozens of the Aeron chairs, which were delivered to Bord Gais Energy's new headquarters this morning. The chairs cost hundreds of euro each.
Dozens of the Aeron chairs, which were delivered to Bord Gais Energy's new headquarters this morning. The chairs cost hundreds of euro each.
Image: Alex French

BORD GAIS ENERGY may have spent as much as €300,000 kitting out its new headquarters with hundreds of state-of-the-art deluxe office chairs.

A spokesman for the company said it had bought 380 of the Herman Miller Aeron chairs for its new premises at Warrington Place, off the Grand Canal near Mount Street in Dublin 2, where these pictures by TheJournal.ie reader Alex French show they were delivered this morning.

The spokesman said that the company was given a significant discount on its bulk order – and that it sought interest from suppliers from across the European Union before buying them.

The spokesman declined to say, however, how much it had paid for the chairs – which were supplied by Irish supplier MJ Flood, who are an official Herman Miller agent in Ireland.

“The selection is made on the basis of the most competitive tender,” the spokesman said. “Bord Gais Energy has fundamentally gone through all that.

“Having gone through a full tendering procedure, we’re talking about a competitive price.”

MJ Flood this afternoon told TheJournal.ie that such a quantity of chairs could be supplied for around €650 each, excluding VAT at 21 per cent.

At a VAT-inclusive price of €786.50, an order of 380 chairs would therefore have come to a total of €298,870 – not including delivery or other associated charges.

Bought on a standalone basis, a salesperson told us, the chairs sell at €750 plus VAT.

The Bord Gais Energy spokesman said it could not reveal how much it had paid for the chairs, as to do so would be a breach of its confidential deal with the supplier. He said:

Bord Gais is a State company – we have high standards in terms of safety practices. Any chair considered would have been tested rigorously and has to meet the standards set down.

The Aeron chair, he explained, was “quite a standard chair used, in terms of the quality that is required” by office buildings.

The 380 staff are due to move into Warrington Place from the current headquarters in Foley Street next week, in order to cater for the growth in BGE’s business since it entered the home electricity market.

The company had secured a lease on its new premises last year “at a favourable time”, the spokesman said, agreeing a deal to move into the David Arnold-owned premises in April of last year.

Read: Bord Gais buys hundreds of deluxe office chairs – weeks after watchdog allows price hikes >

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Comments (33 Comments)

  • Alan Quinn 30/08/11 #
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    I love this recession its absolutely hilarious. I can only afford a 42″ in one room its shocking! Dam its a hard life on the dole I can only go out 1 night a week and have to get cans for the second.

    Reply
  • mart_n 30/08/11 #
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    I’m guessing the purchaser just Googled ‘best ergonomic office chair’ and went with the first result. There’s way better chairs out there and at a fraction of the cost. Have a look at this – http://www.businessweek.com/magazine/content/10_19/b4177071221162_page_2.htm

    “The basic Aeron, by Herman Miller, costs around $700, and many office workers swear by them. There are also researchers who doubt them. “The Aeron is far too low,” says Dr. A.C. Mandal, a Danish doctor who was among the first to raise flags about sitting 50 years ago. “I visited Herman Miller a few years ago, and they did understand. It should have much more height adjustment, and you should be able to move more. But as long as they sell enormous numbers, they don’t want to change it.” Don Chadwick, the co-designer of the Aeron, says he wasn’t hired to design the ideal product for an eight-hour-workday; he was hired to update Herman Miller’s previous best-seller”

    If this was a privately owned company the buyer would get a good talking to over this. Especially with the other recent controversies regarding demands for ‘moving’ pay for employees and the price hike. Madness

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  • Sean 30/08/11 #
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    Bought a couple of cream leather-look office chairs from Viking 2-3 years ago for €30 each and very happy

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  • 30/08/11 #
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    disgusting. so thats why there was a price hike, so they could kit their new digs out in luxury.

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    • Wolfgang Schmitt 30/08/11 #
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      I know this is going to be unpopular, but my guess would be the price hikes have more to do with people not paying their bills.. :-).
      Also, BG is just one of those companies that simply can’t do right. If a story had broke about how their employees have to sit on €30 chairs, the comments section here would be full of how awful they treat their employees and how dare they after just announcing a price hike. I get the anger, but personally feel unaffected by it- I am not a Bord Gais customer and if I was and this upset me to the degree it seems to get people. I could always switch to another provider and find something wrong with them :-))

    • Ian Goode 30/08/11 #
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      Actually the price hike was due to international wholesale energy prices going way up, that’s why you’ll see Airtricity and ESB also increasing their prices soon enough.

      The flip side is that this will hopefully spur some more investment in renewable energy.

    • Fergus O'Neill 30/08/11 #
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      I’d say the price hikes were to increase the profits to make it more attractive when the govt sell it off….

  • Aidan M 30/08/11 #
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    We need a revolt, Libya style, throw all these criminals and politicians on an island off the west coast and police it

    Reply
  • Dave Minogue 30/08/11 #
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    What was wrong with the chairs they were previously sitting on?

    Reply
    • vanessa 30/08/11 #
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      They didn’t have a built in loo or coffee maker or a massager. All the things needed for the delicate employees of BG! They need never leave their desks now. :)

  • Fintan Kelly 30/08/11 #
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    I think this is somewhat of a non story! OK so I agree there may be better and cheaper chairs than the ‘cool’ Aeron by Herman Miller but a good office chair is not cheap. Also as you really have no idea what was spent you are just latching on to the current mode of ridiculing spending. Even our small company can get a significant reduction on cost for bulk buying and as a company can claim the VAT back that is not a correct representation of the story and the cost. Poor reporting and just stiring emotions in my view. Disappointed in this tabloid effort!

    Reply
  • Nigel Kenny 30/08/11 #
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    “quite a standard chair used”. B-S! I worked for one of the largest banks in the world at the height of the boom and every single member of staff, including senior management, had very basic, crappy swivel chairs. Spending 700 quid on a chair would have been viewed as a complete waste of money even by a bank. This is outrageous, wreckless spending.

    Reply
  • Adam Magari 30/08/11 #
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    BGE is just another in a long list of thinly accountable semi-state leviathans. The ESB ladles out ‘gravy’ according to one of its senior union officials. FAS’ understanding of ‘entitlements’ evoked a images of imperial privilege. Tiresome…

    Reply
  • Bryan Rooney 30/08/11 #
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    Who’s the chairman?? Sorry – couldn’t resist!

    Reply
  • Noel Fitzgerald 30/08/11 #
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    As i said before, why don’t people change companies if they are not happy with Bord Gáis? Its a semi-state body so its really none of our business what they spend their money on, price hike or not. This article will just serve as one big free advertisment for Herman Miller Aeron chairs.

    Reply
    • Sean O'Keeffe 30/08/11 #
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      Disagree with this point. The semistates. hand over a dividend to the exchequer annually. The more money they manage to waste or lose through inefficiency, poor productivity etc. the less the state recieves.

  • Brian M 30/08/11 #
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    How is this none of our business? as a BG customer who’ll have to pay out for the massive price hike I think I’m entitled to be a bit miffed. Just go to another provider? Tell me who and give me a good reason why they’d be any better?

    Reply
  • Brian M 30/08/11 #
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    If their chairs are this fancy I bet they also use four-ply! Shower of bastards

    Reply
  • Justin Tighe 30/08/11 #
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    At least the staff will be sitting comfortably when they ring poor unfortunate people threatening to cut them off because they owe BG less than half the price of one of their chairs
    Thank f##k I’m not on gas

    Reply
  • Ciaran Farrell 30/08/11 #
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    Great chairs but I bet they wish they had asked the delivery man to drop them to the back door :)

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  • Joan caulfield 30/08/11 #
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    SO WHAT THERE GOT NEW CHAIRS.. GET OVER IT PEOPLE

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  • Dave O'Shea 30/08/11 #
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    Its not the chairs Joan, it’s the price… It’s 5 weeks dole money, obviously your finical sound… So you get over it

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  • Mark Connolly 30/08/11 #
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    Non-story…high quality office chairs designed for high intensity use don’t come cheap.

    Reply
  • Eggfuel 30/08/11 #
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    Shame that people don’t agree 700 euro is not a fair price to seat those hard working union workers in one of the richest companies in Ireland not practically accountable to the Irish people. I should know as I work for them so u can all suck it up..
    Emigrate if u don’t like it.. I’ll enjoy the perks while u lot bitch.. Lol lol
    Go to he’ll.
    Comfy chair….

    Now I reckon that’s what the users of those seats will say behind closed doors and let’s face it… Most people would too if they were there too…
    They are all lucky to have such a cushy number…
    I wish
    On a more practical note…

    Reply
  • Neil Breslin 31/08/11 #
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    Long term it was no doubt considered a cost saving measure when stacked against ‘Back Pain’ and ergonomic complaints where the costs can stack quite high. If your on your ass at a desk tanking telephone calls all day how you sit will affect you detrimentally.

    That said, my company just made me sign a form saying I wouldn’t slouch like a baby chimp and damage my spine, to the tune of about 0.0001c of toner and paper. Any issues after that, i could meet a specialist and if I need it, get the chair (its actually mentioned by name in the declaration and as cited above by another commenter- is considered a world leader) but the idea of this as standard office kit is bullshit. This was most definitely a vanity purchase.

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