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ESB criticised for paying wage increases

Government Buildings - More talks on economic recovery plan
Government Buildings - More talks on economic recovery plan

High energy costs are a key issue under discussion today at the social partnership talks in Government Buildings.

Last week, IBEC called for the deferral of all wage increases negotiated just last September in the national partnership agreement.

However, the ESB has paid the first phase of the 3.5% national wage increase to its staff since last November.

The move comes at a time when businesses are under severe pressure from high energy costs, and when IBEC is lobbying hard to get the costs down.

IBEC Director of Policy Danny McCoy said it was very disturbing that the increase had been paid.

He acknowledged the the payroll element of EBS's operations did not impact significantly on the overall price of energy, but said the symbolism was the problem.

The ESB, which is a member of IBEC, said it had complied with a national agreement which was in force. It also pointed out that it had contributed €400m to the Commission for Energy Regulation to ameliorate the effects of price increases.

ICTU defends ESB move

The General Secretary of the Irish Congress of Trade Unions has welcomed the ESB's move to pay staff an increase, however. David Begg said the company is more capital than labour intensive.

He added that the ESB, as an IBEC member, had done exactly what the trade unions want all members of the employers group to do.

He said a review of the regulation of the energy industry is on the agenda at the talks.

Mr Begg said private providers of energy leave the market if prices are not high enough. Such a situation has led to an ongoing increase in the cost of energy.

The talks this morning have been focused overall on the enterprise agenda. Danny McCoy said activity is needed in order to secure an increase in the public finances, and that the public finances will not be stabilised by cuts alone.

The absence of trade credit insurance and the challenge posed by the current sterling euro exchange rate were also discussed.

Mr McCoy said the current crisis is far greater than any of the devaluations of the past. He it is putting huge pressure on business, and the redirection of resources is needed to help create greater enterprise.

Meanwhile, the Small Firms Association called on the Government to help enterprise by paying its own bills within 10 days, and introducing a Government-backed loan guarantee scheme for business.

IBEC were in Government Buildings this morning, while the Irish Congress of Trade Unions are meeting Government officials this afternoon.

Meanwhile, ICTU has said it was not seeking the introduction of a property tax on homes. In a statement today, Congress said that contrary to some reports, it has proposed a tax on properties other than a primary residence.