The secretary of the ESB Group of Unions has held out the possibility of a disruption to service this winter after workers yesterday voted for industrial action in an ongoing row over a hole in their pension scheme.
The group's general secretary Brendan Ogle, however, did not specify what action might be taken by workers or how damaging it might be to customers.
The ESB group of unions confirmed yesterday that the results of a ballot of its five constituent organisations show that 87.5 per cent of members - a majority of seven to one - voted in favour of industrial action, up to and including strike.
The unions claim that the ESB’s pension fund would have a €1.7 billion shortfall if it were wound up, leaving workers with 4 per cent of their benefit, but the company denies this, and says it has already won the regulator’s approval for a plan to plug the gap.
Speaking after the ballot, Mr Ogle, indicated that the unions are likely accept a management invitiation to meet to discuss the issue.
“We are going to engage with them,” he said, “but the first thing that we have to do is to consider the members’ mandate.” Mr Ogle pointed out that the group of unions is due to meet on Friday to discuss the ballot’s outcome.
The ESB also confirmed in a statement that it has invited the group of unions to talks and said that it has indicated that it will respond formally following its own meeting.
In a statement issued following the counting of the votes, the ESB group of unions claimed that the company has exposed workers to an “almost complete eradication” of their pension should it be wound up.
“This scheme functioned by agreement between all stakeholders from 1942 to 2010. ESB’s unilateral departure from proper accounting and existing agreements has now given rise to an industrial dispute,” it said, adding that the resolution lies with the company.
The ESB said it was disappointed at the ballot’s result. “We acknowledge the potentially serious impact of this situation for customers and we will continue to work to resolve the issues directly with the group of unions through the established procedures,” it added.
Separate to the industrial action, four workers are taking the company to the High Court seeking to prevent it paying up to €474 million in dividends to the State over the next year until it addresses the deficit.
The unions’ claim that the retirement pot is €1.7 billion short is based on the minimum funding standard, which calculates a defined benefit pension fund’s assets and liabilities as if it were to be wound up.
