Irish incumbent Eircom’s union members have endorsed a recovery plan aimed at generating E92m through labour savings, the company announced today.
The cost saving measures put to unions include 10% pay cuts for 18 months and a reported 1,000 job…
Irish incumbent Eircom’s union members have endorsed a recovery plan aimed at generating E92m through labour savings, the company announced today.
The cost saving measures put to unions include 10% pay cuts for 18 months and a reported 1,000 job losses.
Eircom intends to implement the measures as soon as possible, after reaching an ‘in principle’ agreement with union leaders at the beginning of March.
Paul Donovan, CEO of Eircom, said “Following the outcome of this ballot, eircom has now taken another important step on the path towards a competitive cost structure. It is extremely encouraging to know that our employees throughout the organisation are prepared to make difficult but necessary decisions to help secure the long term financial future of the company.”
Ireland’s Communications Workers’ Union (CWU) had reportedly warned staff that the group risked falling into creditors’ hands unless they agree to implement the E92m of savings.
Donovan has previously said that job losses will be “inevitable” and could be “substantial” as the group looks to restructure its E3.75bn net debt.
Gleacher Shacklock and JPMorgan are continuing to advise Eircom on a range of options, including a restructuring, debt swap or rights issue. Linklaters and Arthur Cox are the company’s legal advisers.
Unconfirmed reports also suggest restructuring specialist Houlihan Lokey has been appointed by Eircom’s senior lenders to advise them on the debt owed by the operator.
