Eircom is to seek agreement with unions on a modernisation programme which may lead to further job losses, the company’s chief executive confirmed today.
The company is reportedly planning to seek up to 2,000 redundancies as part of its cost-cutting plans.
Eircom has been attempting to reduce its workforce by 1,200 through a voluntary severance package, but unions are now expecting a further round of job cuts of 1,500-2,000.
Outlining three areas Eircom will address in order to reduce its cost base, Paul Donovan said the former State-owned telecoms firm will look at staff reductions, measures to reduce the cost of individual transactions and improving operating efficiencies.
"I've been very clear that there are going to be fewer people working in our business in the future," he told RTÉ's Morning Ireland.
“Today, the majority of our services are delivered over copper. In the future, they are going to be delivered over fibre and over wireless technologies. It’s a clear fact that those need fewer people to operate them to give the kind of services the customers need.”
Mr Donovan confirmed Eircom has begun talks with union. “We are involved in a process of discussion which, I’m sure, will take a number of months, with our union partners so that we can agree jointly a way forward for the business," he said.
Mr Donovan said the company would have to play "catch-up" as it is currently three or four years behind comparable European companies. “In order to provide the kind of services and the kind of prices our customers demand and that is required both by competition and regulation, the company is going to need to modernise itself," Mr Donovan said.
