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The Communications Workers Union in Ireland is calling on its government to intervene and protect the long-term future of the country’s primary telecommunications service provider.



The company, which is struggling to meet debts of €3.8 billion, is currently 57% owned by Australian investment fund, Babcock and Brown Capital (BCM). BCM received an offer from another group of investors to purchase their shares, in April 2009.  The deal has since been rejected by Eircom management.



Unions and Eircom management struck a deal this week to cut 1,200 jobs over the coming years, and to freeze pay for 2 years.  



Further cuts will undermine the company’s activities, the unions say, and government intervention is necessary to preserve Eircom, an essential component of the country’s infrastructure and economy.  This reflects the current global trend towards greater government involvement in regulating economic activity in the wake of deregulation and resulting economic and financial strife in recent months.