Dáil Éireann debate -
Tuesday, 27 Feb 1990

Vol. 396 No. 3

Ceisteanna—Questions. Oral Answers. - Telecom Éireann Plans.

Pat Rabbitte

Question:

18 Mr. Rabbitte asked the Minister for Communications if his attention has been drawn to the decision of Telecom Éireann to introduce an early retirement and voluntary redundancy plan, intended to reduce staff by 700; to the fact that staff as young as 40 will be able to apply for early redundancy; to a statement of the General Secretary of the Communications Workers' Union that the proposals were wholly inconsistent with the Programme for National Recovery which aimed to expand rather than contract employment; if he has had any discussion with Telecom Éireann regarding their plan; and if he will make a statement on the matter.

Mr. Burke

I am aware of the terms of Telecom Éireann's most recent proposals for early retirement and voluntary redundancy. The proposals were approved by me with the consent of the Minister for Finance.

While I do not propose to enter into a debate on the Programme for National Recovery, I would simply remind the Deputy that an objective of that programme is to actively encourage State-sponsored bodies to develop and diversify economic employment creating activities. Technological developments in the telecommunications field have resulted in operations which were formerly carried out manually now being done automatically by computer. The introduction of digital switchboard operation is a good example of this type of development.

For the above reasons, Telecom Éireann have a serious over-staffing problem and the need to reduce staff levels has been referred to in successive annual reports and accounts which have been laid before the House. As a commercial company with a policy of keeping tariffs below the rate of inflation, of improving the competitiveness of Irish international call charges and of maintaining the competitiveness of tariffs for business services, the situation could not be allowed to exist whereby staff for whom no viable job existed, would be retained.

All these considerations were taken into account before approval was given for the current Telecom Éireann early retirement and voluntary redundancy plans.

Mr. McCartan

Is the Minister aware of the definite and stated resistance by union leaders representing Telecom Éireann workers against the proposals? Is he aware that they hold the view that the scheme is totally contrary to the spirit of the Programme for National Recovery which is about job creation? How does the Minister marry that aspiration in the programme to the proposal to shed more than 700 workers in Telecom Éireann?

Mr. Burke

The Programme for National Recovery states that State-sponsored bodies will be actively encouraged and facilitated to develop and diversify their economic employment creating activities. It states that the State-sponsored bodies which provide utilities and services must, through greater efficiency and cost containment measures, bring down the high cost environment now affecting the competitiveness of our economy and the growth of employment. One area relates to telephone charges. The company have a major over-staffing problem, to the tune of about 1,500, and that figure is likely to rise due to the introduction of digital switchboard operations in the company's audio-manual telephone exchanges. It is due to technological developments in general. Telecom Éireann have been doing everything possible to provide alternative employment. For example, they have got involved in contract work with British Telecom and about 500 staff are employed in helping British Telecom to update and upgrade their system. The management of Telecom are very conscious of the need to take every opportunity to create employment, but that has to be balanced with the overall situation where, if no work is available for staff, they cannot be, on an economic basis, carried in the company to the cost of the user of the service.

Mr. McCartan

Given that Bord Telecom's profits have trebled in the year ended 30 March 1989, from £17 million to over £50 million, surely, there is scope for the expansion and diversification of Telecom into other areas? Surely the Minister should be urging Bord Telecom not to shed workers but to redeploy them into productive and diverse areas. No one argues for the retention——

An Ceann Comhairle

This is becoming a very long question, Deputy.

Mr. McCartan

Is there not another way forward than merely putting people on redundancy, particularly at the young age of 40 years?

Mr. Burke

In an ideal world what the Deputy is suggesting would be correct. There would be enough additional employment to absorb those who are being made redundant because of changes in technology. Unfortunately, that is not the case and the board and management of Telecom are well aware of the Government's view that they should diversify into other areas. They have provided additional services, for example, Eirpage and other services. They have TEIS into the whole downstream side of business. They are looking at other opportunities for employment and wealth creation but it is, unfortunately, a difficult area. The changes in the telecommunications area have had a far greater effect as far as technology changes are concerned on manpower levels than anywhere else.

An Ceann Comhairle

May we have a final brief supplementary from Deputy O'Sullivan?

Mr. G. O'Sullivan

Will the Minister indicate what timespan he has in mind to get rid of the 1,500 staff in Telecom.

Mr. Burke

A retirement package has been approved by the Department of Finance. The details of it are well known to the company members and it is a question of offering it to the staff of the company and for the staff to take it up. I understand that as soon as possible is the time scale.

Deputy McCartan rose.

An Ceann Comhairle

Let us deal with another question. I thought I had given Deputy McCartan a lot of latitude on this question.