Skip to main content
Normal View

Dáil Éireann debate -
Wednesday, 19 May 1999

Vol. 505 No. 1

Written Answers. - Departmental Meetings.

John Bruton

Question:

48 Mr. J. Bruton asked the Minister for Public Enterprise if she will report on the recent meeting between officials of her Department and Telecom Éireann union leaders; the reason officials from the Department of the Taoiseach were involved in this meeting; and if she will make a statement on the matter. [11323/99]

Officials of the Department of the Taoiseach met Mr. Peter Cassells, General Secretary, Irish Congress of Trade Unions and with representatives of the unions in Telecom Éireann on 27 April 1999 under Partnership 2000 to discuss the issue of employee representation on the boards of State companies in situations where the State would reduce its ownership of such companies through strategic alliances, joint ventures, flotations and other mechanisms. With the forthcoming initial public offering of shares in Telecom Éireann, that case was the one most immediately relevant to the trade union delegation.

This was the second such meeting to discuss the issues involved, which arose out of a letter sent to me in March by Peter Cassells. I accepted a suggestion by Peter Cassells for a meeting between congress and the Department of the Taoiseach under Partnership 2000. No officials from my Department were present.
Under Statutory Instrument No. 87 of 1999 made pursuant to the Postal and Telecommunications (Amendment) Act, 1999, Telecom Éireann was removed from the scope of the Worker Participation (State Enterprises) Acts as the obligations imposed by those Acts would not be appropriate to the company's status as a publicly quoted company following the initial public offering. Under the 1999 Act, the terms of office of the existing employee representatives on the board will continue until such date as I may specify.
Under the employee share ownership plan, ESOP, for Telecom Éireann, the employee trust company is entitled to nominate a director for appointment to the board of Telecom Éireann. The unions have already indicated that Deputy Spring, will be their nominee for appointment to the board as ESOP director and he will replace one of the existing employee directors on the board.
The Department of the Taoiseach, in conjunction with the Departments of Public Enterprise, Finance and Enterprise, Trade and Employment, is considering suggestions put forward by the trade unions concerning the role of employee representatives in the evolving ownership structure of State companies.
Top
Share