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Dublin: 6 °C Friday 24 May, 2013

ESB staff vote in favour of cost-cutting plan with 1,000 job losses

The State-owned energy provider has asked for around 700 voluntary redundancies with the remaining 300 jobs cut over the next three years.

Image: Mark Stedman/Photocall Ireland

STAFF AT ESB have voted in favour of a major cost-cutting plan which will see 1,000 jobs lost at the energy supplier.

The company has welcomed the vote by employees on the payroll reductions, which ESB says will lead to savings of €140 million in annual payroll costs.

The job losses are part of an overall plan by the company to cut its costs by €280 million by 2015.

The State-owned energy provider has asked for around 700 voluntary redundancies which will be sought later this year. The remaining 300 jobs will be cut over the next three years.

The company currently employs around 6,900 people.

The cost-cutting programme was agreed in negotiations between ESB management and the four unions representing ESB workers – SIPTU, Unite, TEEU and the ESB Officers’ Association.

John Campion of ESB said that the acceptance of the proposals will allow the company to remain competitive in electricity and gas markets.

ESB workers to vote on plan to shed 1,000 jobs by 2015 >

Parts of Bord Gais and ESB to be sold off to raise €3 billion >

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Comments (29 Comments)

  • It’s 140m over 5 years if I’m correct, an payroll savings means more then simply annual wages as some have suggested

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  • Incorrect the esb only generate about 47% of the country’s electricity. I’m surprised that the staff voted this deal through . I wouldn’t like to think about taking a 20% cut in earnings regardless of how you went about it it’s still a big cut. Maybe there not as bent on money as we suspected

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  • mcbab 11/04/12 #

    Read the last paragraph folks. Looks like good management to me. Got to stay competitive to grow and survive. 700 voluntary redundancies and the other 300 over 3 years as those employees edge nearer to retirement.
    Employ young people and get them started on a career. Of course their salaries will be lower but will increase over time.

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  • This has been on the cards and has been whispered about for a long time. Dare I say its funny thou, they are running a massive recruitment drive at the moment??

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  • 1,000 jobs will lead to savings of 140 million in annual wages. 140 million????.

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  • first things first they are not just van drivers they are practically all qualified electricians (just bugs me to hear that). and secondly an ESB sister company makes a massive amount of money setting up networks all over the world so “saving money” is a cover for making more money for our shareholders!!! and thirdly they are practically the only ones generating electricity on the island, electricity that the likes of bord gais and airtricity buy from them in bulk, they control the market so whats all this bullshit about staying competitive????

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    • Wrong. ESB was forced to reduce its holding in the generation sector as it was in the retail markets. Bord Gais has its own plant. Vridian and Endessa are in the game and there are other independent power producers such as Edenderry power and the wind farms. ESB still have a significant holding though. Generators are forced to bid their marginal into the regulated market. This market was designed to be robust to the market power of any one company.

      Any company is free to buy from that market, at the same price. Some of them hedge their risk better than others, but ultimately they pay the same at the market. If you have information which shows that ESB are gaming the market or are acting in cartel with other generators forward that information to the market monitoring unit of the commission for energy regulation. Otherwise, keep your sweeping statements to yourself.

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  • Does that 6000 include the ESBI?

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  • Golden parachutes and handshakes all round.

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  • Half the salaries and double the staff. 6000 off the live register at no additional cost.

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    • What a ridiculously simplistic comment. Doesn’t matter if they can do the job or not obviously. How many of you will be willing to take a 50% pay cut. The only people working in the esb are van drivers and unskilled workers. No I do not work for ESB I am just sick of the trite simplistic comments

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  • Airtricity, Synergen , Edenderry Power, Endesa-Ireland and Huntstown (Viridian) and countless wind generation operators who get first priority on the grid.

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  • about time the ESB mafioso were tackled they have been getting away with whatever they want for years. Their wages are a disgrace and nothing was being done about it. My mates dad has worked for the ESB for years and the wealth that family have had since we were kids is obscene.

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  • piohmy 11/04/12 #

    1000 jobs to save a €140 million.. That’s €140k a job isn’t it… Overpaid and underworked & got a 17.5 % wage increase in 2010.. They pay no prd in their wages either because there semi state.. They get paid the most & contribute the least…

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    • Where did you see this 17.5% increase? And of course there would be no prd they have a self and company funded private pension scheme and don’t get paid by the state at all. Obviously your a bit confused by the operation of this semi state.

      Reply

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