Ireland's electricity utility, ESB, has welcomed the vote of its employees to accept payroll reductions which are part of a wider cost reduction programme within the company. The overall programme will see the company’s cost base reduced by €280m by 2015.

With the vote, ESB staff accept the implementation of comprehensive payroll reduction proposals that will deliver 20% (€140m) savings in annual payroll costs.

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The programme involves an integrated package of earnings reductions and reductions in staff numbers, which was concluded following intensive negotiations between ESB management and the Group of Unions. The payroll and wider cost reduction programme within the company including non-payroll elements will result in a €280m reduction in ESB’s cost base by 2015.

ESB Executive Director, Sustainability & HR, John Campion said: "I welcome the acceptance of these proposals and the commitment of staff and unions to this agreement. This will ensure that the company can continue to invest in national critical infrastructure while remaining competitive in electricity and gas markets."

(CD/GK)