Eircom staff belonging to the Communications Workers Union have accepted a cost reduction programme aimed at saving the company €92m over the next three years.
The company, which has debts of €3.8 billion, has warned that it is in danger of breaching its debt covenants.
The package includes a 10% pay cut arising from a reduced hours formula whereby staff will only work nine days per fortnight. Further cost saving measures will be negotiated over the next three months.
Of the union's 4,000 members, 1,908 voted in favour of the cost cuts, with 1,388 voting against them.
The ballot result clears the way for the main shareholders in the company - STT and the Eircom Employee Share Ownership Trust - to invest in the firm by addressing its debt issues, and with new technology.
CWU General Secretary Steve Fitzpatrick said he was relieved rather than happy at the result, given the hardship that the package will place on his members.
He said he hoped to see the necessary investment being put in by the shareholders as promised.
He also hoped they would now see an end to the asset stripping of Eircom as a company by venture capital groups.
Eircom welcomed the outcome of the ballot, with CEO Paul Donovan saying the company had now taken another important step on the path towards a competitive cost structure.
