ESB workers condemn government attacks on wages

5 February 2009

Unite, the largest trade union representing workers at the ESB, has attacked Environment Minister John Gormley over comments made yesterday criticising the payment of an agreed wage rise.

“The ESB made in excess of €500 million in profit last year,” said Unite Regional Organiser Brendan Ogle.  “Over €150 million of that was paid to government through its dividend.  Like any other company, it is bound by the national agreement struck by his own government to pay an increase of 3.5 per cent to the workers who have contributed to that.” 

“Electricity prices are disgracefully high, but that has nothing to do with staff costs.  Staff costs represent 16 per cent of the ESB’s operating costs, ranking us 9th of the top 15 EU economies.  The reason for electricity prices being so high is because of misguided government policy to distort prices, to create a false competitive market and in the long run to use this as a control on prices.  All it has done is create the high prices but with no competition.”

“The Unite Union published a paper as long ago as March 2007 ‘Through the Looking Glass – A Briefing Paper on the Irish Electricity Market’ which highlighted how Government Policy was deliberately pushing electricity prices to unsustainable levels to encourage competition.”

“Rather than scape goating workers, Mr Gormley and his colleagues should be forcing an abandonment of this policy and allow ESB to bring prices down to their natural level.”

“Employers who cannot afford to pay, and this seemingly includes the government, have options on how to deal with workers for the common good.  The ESB and other profitable companies would be profiteering on the backs of honest workers were they to step outside the agreement.” 

“The ESB understands this and the cheap politicking of Mr Gormley will hardly be appreciated, even by his fellow Green cabinet minister, Eamon Ryan.”

“ESB workers contribute to this making ESB the only truly successful utility in the state. Ask any member of the public who lost their electricity recently in storms only to have it repaired within hours.”

“ESB fulfils its function efficiently and profitably. It does so at a time when the Banks are riddled with mismanagement and corruption and the building developers have mortgaged the country to the hilt for a lifetime.  For the government to attack those who are doing things right and defend those who have clearly done wrong is bizarre and will be recognised as so in living rooms up and down the country.”

“It is time for cool heads Minister Gormley. Your anger is misplaced. We do not want or need an ‘angry’ Government, attacking workers. Workers in ESB and elsewhere will not allow themselves to be made scapegoats for the historic mess the triumvirate of Government, Bankers and Developers have gotten us into. Until banks call in their loans rather than being protected by workers taxes and until the wealthy pay their share to solve this debacle, workers too will be rightly angered.”

END

Further information: Brendan Ogle – Unite M: 087 1200312, Rob Hartnett – Hartnett McClure PR M: 086 3851955

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