Staff at Eircom face a 10% pay cut as part of a package of measures to save the company €92 million over the next three years.
The cutbacks are being implemented because the company has warned that it is in danger of breaching its debt covenants.
The Communications Workers Union has said that its National Executive Council has decided reluctantly to recommend the Eircom Rescue Plans to members when they ballot on it over the coming fortnight.
The 10% pay cut will arise from a reduced hours formula, whereby staff will only work nine days per fortnight.
Further cost reducing changes will be negotiated over a short timeframe.
In a statement, the CWU has said it expects if the changes are implemented that the workforce will recover the lost time within an 18-month timeframe.
The union continued that the deal also envisages that the main shareholders in the company - STT and the Eircom Employee Share Ownership Trust - will invest in the company by addressing its debt issues and also with new technology.
This afternoon, Eircom said it had reached an 'in principle agreement' with the Trade Union Alliance on a range of modernisation and cost-cutting measures to deliver €92m savings by 2013.
