Eircom plans 15% job cut in next 2 years (Ireland)

www.WirelessFederation.com/news: Eircom plans to cut 15% of its total workforce in next 2 years under a restructuring agreement with its trade unions and a part of its EUR 130 million cost savings plan. According to Eircom acting Chief Executive Cathal Magee said the company and union representatives have demonstrated their willingness to make difficult but necessary decisions to ensure the long-term competitiveness of the Irish operator.
Eircom will issue 1200 pink slips of its 7,500 jobs by June 2011 and freeze basic pay in next 2 years. There will be no performance-related annual bonus payments in 2009 and for the next two years for staff earning over EUR 35,000/year, and there will be a 25% cut in staff allowances and the elimination of “other traditional arrangements”.
Eircom has further asked the operational staff to voluntarily accept a 10% cut in pay, while operational workers to accept 5% drop. The accord said that Eircom’s net debt is too high, with excessive annual interest costs.