SALARY INCREASES:THE ESB and its trades unions should agree a new productivity deal to compensate for the 3.5 per cent pay rise awarded to workers last November, the Government has said.
The move by Minister for Energy Eamon Ryan came after his Green colleague, the Minister for the Environment, John Gormley said “widespread concern” existed within the Government about the ESB’s decision to pay the increase – due under the social partnership agreement – to the company’s 8,500 staff.
Last night, Mr Ryan said pay decisions are a matter for the ESB and he added that it is regarded as a private company under the terms of social partnership.
However, he said: “In agreeing wage increases it is always open to the board to seek greater productivity and efficiency measures. In the current . . . economic climate I would urge that wage increases be accompanied by improved productivity arrangements so that all in the ESB can play their part in our national recovery.”
But it emerged last night that the Government had never expressed any concern directly to the ESB about its decision to award the pay rise even though it came into force last November.
“It does look like the cat that got the cream. It would make sense if it did not go ahead at this stage,” Mr Gormley told RTÉ’s News At One programme.
“I think that there is widespread concern in Government. It is seen as inappropriate and it is seen as sending the wrong signal at this time,” he said.
However, it emerged later that the pay award was made nearly three months ago and was in line with social partnership norms.
In addition, it is understood that the company has not received a single protest up to yesterday from the Government, Ibec, or Ictu about the award.
Under social partnership rules, the ESB – though it is entirely State-owned – is regarded as a private operation, and has been throughout the lifetime of social partnership.
The three-month pay pause for private sector workers agreed in last year’s social partnership deal came to an end on November 1st last year, leaving 3.5 per cent due.
The pay rise was approved by the ESB’s board in December and backdated to November, as happened in 50 private sector companies. The increase cost the ESB €8.9 million for its workers, including 1,200 staff in ESB International, a spokeswoman told The Irish Times.
Payroll costs in the ESB – which has the highest average salary for employees of any organisation in the country – account for 10 per cent of electricity costs, she said.
