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Dáil Éireann díospóireacht -
Wednesday, 5 Jun 1996

Vol. 466 No. 4

Written Answers. - ESB Staffing.

Seamus Brennan

Ceist:

288 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the number of employees recruited by the ESB during 1994, 1995 and the estimated number to be recruited in July 1996; and if he will give a breakdown of these recruits by function. [11521/96]

I am advised by the ESB that the numbers of employees recruited to the ESB in the years in question are as set out below:

1994

1995

1996

Regular Employment

17

3

Apprentices

56

These recruits are broken down by function as follows-
1994 complement:
7 graduate engineers
5 trainee linesmen
1 clerical officer
2 general workmen
2 managers
1996 complement:
2 press officers
1 public relations co-ordinator
Temporary Staff
It has always been ESB practice to recruit temporary staff to meet seasonal peaks. The average numbers in the full years in question were: 1994 — 510; 1995 — 390.
Projections indicate a similar level in 1996.

Seamus Brennan

Ceist:

289 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the ESB cost and competitiveness review plan's assumptions, on a year by year breakdown of the ESB estimate, of the five year £270 million cost of the cost and competitiveness review plan; and the year by year breakdown of redundancy payments, part pay, the additional 6 per cent pay for remaining employees, pension contributions by the ESB for the 2,000 employees to be made redundant, the additional pension contributions to be made by the ESB in respect of new bonus payments for remaining employees and all other related costs totalling £270 million. [11522/96]

The ESB has advised me that the £270 million cost of the CCR breaks down on a year by year basis as follows:

CCR Cashflows — Implementation Phase (1995 Money)

1995

1996

1997

1998

1999

£'m

£'m

£'m

£'m

£'m

Lump Sums to Individuals

5.0

14.8

13.3

8.5

Part Pay

4.0

4.5

10.9

16.2

16.1

Pension Contributions

1.0

37.5

26.9

17.1

Other VS Related Costs

5.5

4.0

3.0

Subtotal (Exits)

10.0

62.3

55.1

44.8

16.1

Additional Pay — remaining employees

10.0

10.0

10.0

10.0

Reward Lump Sums

9.5

5.4

7.4

2.6

Pension — Employees Portion

1.9

3.8

3.8

3.8

Other Costs

0.5

0.5

0.5

0.5

Total Costs

10.0

84.2

74.8

66.5

33.0

Total Savings

10.0

24.7

56.9

80.3

85.3

Cumulative Net Savings

0

(59)

(77)

(63)

(11)

The lump sums or "bonus payments" payable under the CCR are not superannuable. Therefore, no additional superannuation cost arises from their payment.
After 1999 total savings continue at about £85 million per annum and total yearly costs average about £27 million leaving the annual net savings at approximately £58 million in 1995 money terms.

Seamus Brennan

Ceist:

290 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the assumptions used in the cost and competitiveness review plan of the ESB in relation to the number of full pay employees each year at 1 January; the number of recruits; the number of terminations; the number of redundancies; and the number of retires from January 1996 to December 2003. [11523/96]

I have been advised by the ESB that its best assumptions, regarding its employee number profile, set out below:

Year

Number of employees

Voluntary Severance

Normal* Retirement

Recruits*

Net

Net Exits to end

1995

400

1996

9,325

600

25

(25)

600

1997

8,725

600

25

(10)

615

1998

8,110

400

25

(10)

415

1999

7,695

20

(10)

10

2000

7,685

20

(10)

10

2001

7,675

20

(20)

0

2002

7,675

20

(20)

0

2003

7,675

20

(20)

0

* The level of normal retirement will be distorted by the availability of a lump sum payment for early retirement under the voluntary severance scheme.
** Recruitment will be confined to optimising key skills within the company.

Seamus Brennan

Ceist:

291 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the assumptions of the cost and competitiveness review plan of the ESB in relation to the year by year redundancy schedule for the 2,000 people to lose their jobs; and the age distribution by five year bands assumed for these 2,000 ESB employees. [11524/96]

I have been advised by the ESB that the following profile of exits has been assumed in the CCR; a net 400 to end 1995; approximately 600 in 1996; 600 in 1997; and 400 in 1998. The assumption in relation to the age distribution assumed for these 2,000 ESB employees is set out below.

Age Band

% of Exists

Age Band

% of Exits

20-30

3%

50-55

18%

30-40

7%

55-57

23%

40-45

9%

60-65

25%

45-50

15%

Seamus Brennan

Ceist:

292 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the estimated number of ESB employees who ceased work on a year by year basis between 1 January 1994 and 31 January 1996; the number who reached full pensionable age; the numbers who accepted redundancy; the numbers who accepted early retirement; the cumulative total estimated cash cost to the ESB of such early retirements from the date of retirement to the normal pensionable age to which they had been entitled; the cumulative total cash cost to the ESB of the redundancies; and the amounts of such estimated costs provided for in the ESB's published financial accounts for each of the years from 1994 to 1996. [11525/96]

The ESB has provided me with the following information:

Number of Staff who have left ESB

1994

1995*

Natural wastage

144

126

Voluntary severance

104

153

* Includes January 1996.
The total estimated cost to the ESB of these exits in present value terms is £22 million. All of this cost was charged in the 1994 accounts.
It is worth nothing that these severance exits largely related to people close to retirement age. Therefore these exits had a relatively low cost when compared to the age profile targeted by the 1996 voluntary severance scheme.
The ESB does not differentiate between early retirement and voluntary severance schemes.

Seamus Brennan

Ceist:

293 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the amount of the ESB's estimate of the £270 million cost of the cost and competitiveness review plan that will result from the reduction in the ESB full pay employee numbers from 9,265 at 31 January 1996 to 7,675. [11526/96]

I have been advised by the ESB that the figure of £270 million represents the implementation costs of the CCR. These costs cover the period 1995 to 1999. During this period the total savings projected by the ESB amount to £260 million with annual net savings of £58 million thereafter.

An amount of £187 million has been identified as the proportion of the £270 million that relates to the voluntary severance scheme and related employee assistance programmes for the 2,000 CCR exits.
A further 1,600 exits are required to achieve the desired reduction of 2,000 employees under the CCR which assumed a base date of January 1994. The voluntary severance scheme and related employee assistance programmes for these 1,600 exits represents £166 million of the £187 million figure provided already.
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