There has been intensive media speculation in recent weeks in relation to the proposed sale by Eircom of its retail arm and in relation to the sale of the eircom masts.  Those stories have led to Union headquarters being inundated with requests for information in relation to those proposals and I thought it prudent to put the position of the National Executive Council in writing to you.

A.) Sale of Eircom Retail.

The proposed sale of Eircom Retail is a story that has run and run since the purchase of Eircom by Babcock and Brown.  Babcock and Brown have assured us on numerous occasions that this is pure media speculation and that they are happy to run the Company on an integrated basis.  Despite those assurances the story
continues to dominate the headlines and there is little doubt that Babcock and Brown have been in discussions with the Department of Communications and ComReg (the communications regulator) and the Government in relation to the possible splitting up of the business through the sale of Eircom retail.

I have been assured by the Eircom ESOP Board that they have received no documentation from the Company in relation to this proposed sale but that there have been some preliminary discussions between the ESOP Board and the Chairman of Eircom Mr Pierre Danone.  The Board have also assured me that they have urged the Company to involve the four Unions in Eircom in the discussions surrounding this critically important issue but to date we have had absolutely no contact from the Company regarding this matter, and it seems the attitude of the Company to the Trade Unions extends beyond the recent dispute into its strategic plans.

Given the decision of the Company to ignore the Unions in relation to this crucial issue the National Executive Council has decided that they will oppose any breakup of the Company or any sale of Eircom retail by all means at its disposal.  We will now examine how we can publicly oppose this proposal through our influence industrially, commercially and politically.  Once again it is disappointing to report on the attitude of the
Company but it seems to believe in doing its business using megaphone diplomacy through the media rather than talking directly to the Unions.

B)                         Sale of Eircom Masts

Once again our members have read of the proposed sale of the Eircom masts through the national media as senior management of the Company continue to refuse to deal with the Unions.  We have been assured by the ESOP Board that it has not approved the sale of those masts at this stage though it accepts that the issue has been discussed with them.  Whether or not the sale of those masts is a good or bad idea  remains to be seen but one increasingly gets the feeling that Babcock and Brown are only interested in selling the family silver and preferring short term options over long term gain.  Whether or not the Unions need to take a public stance on this issue is still being determined as we continue to take advice in relation to the long term implications for our members.

Enquiries from members relating to the above should be referred to Jerome Barrett or Jimmy O'Conner