Working Group to examine Company cost-base

ESB Chief Executive, Padraig McManus, and the Company's Management have announced pay cuts in their salaries and a two year pay freeze. On Monday, February 9th, the Chief Executive told separate meetings of Management and the Group of Unions that he is taking a 10% cut on superannuated salary and a two year pay freeze. His senior management has also agreed to a five percent pay cut as well as the two year pay freeze. All employees have been asked to implement a two year pay freeze.

Meanwhile, the Company's Group of Unions has been requested to accelerate the ongoing pension review in order to develop a new pension scheme for future ESB employees and to address the expected deficit in the Company's Defined Benefit Scheme.

An actuarial review of the current Defined Benefit Scheme has commenced and the outcome is expected in April.

The decision to implement salary cuts and a pay freeze comes in the midst of the ongoing economic downturn. Explaining his decision, Padraig McManus said ESB cannot be insulated from the overall difficulties facing the global and Irish economy. He also said that ESB will actively maintain its financial strength in the interest of its customers and to ensure it can play a dynamic role in the Irish economic recovery.

ESB must examine its cost base and he has established a high-level team to establish ways of reducing costs.

"It is a time for companies like ESB to show leadership and we also have to work in areas such as employment-creation. We want to see how we can create jobs in the economy," he added.

ESB has announced a programme whereby electrical apprentices who have recently been made redundant can complete their training with ESB Networks. In co-operation with FÁS, a total of 400 apprentices will be accommodated on the programme.

The initiative has been warmly welcomed by the government. EM