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[Article] ESB confirms closure of 27 shops

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  • 16-06-2003 7:33pm
    #1
    Victor
    Registered Users Posts: 78,370 ✭✭✭✭


    Do I have the wrong end of the stick here? Surely this is an oppurtunity for someone to acquire a chain of 27 established shops? While I understand some / a lot may be loss making, it should still present an oppurtunity to someone whether in the elctrical business or not. (I understand part of the reason for exiting is to cut costs, to allow the ESB compete better in a deregualted market but also to break up the dominant position the ESB has in generation, distribution, supply and sale of appliances).

    http://home.eircom.net/content/irelandcom/breaking/888654?view=Eircomnet
    ESB confirms closure of 27 shops
    From:ireland.com
    Monday, 16th June, 2003

    The ESB has confirmed the closure of 27 of its 81 shops nationwide by the end of the summer.

    The company also reported that the full-time staff involved - who were told of the development today - would be offered the option of redeployment or voluntary severage packages.

    In a statement this evening teh company said: "The decision to rationalise ESB's retail operation is part of the Programme to Achieve Competitiveness and Transformation deal agreed by ESB management, unions and staff in July 2001 in order to prepare the company for the introduction of competition."

    The ESB Officers' Association (ESBOA) today said the closures are part of an agreement reached in 2001 with the company in which the closure of 40 shops had been proposed.

    "This was rejected by the ESBOA and following extended and difficult negotiations a final position was arrived at which indentified 27 locations to close at the end of August 2003," Mr Tony Dunne, ESBOA general secretary said.

    "A comprehensive package of proposals was negotiated for those affected, including voluntary severance, relocation, protection of loss of earnings and an exit package for temporary staff," he added.

    Customers who pay their bills at the outlets are not expected to be affected as alternative arrangements will be made.

    Age Action Ireland has voiced concern about the closures saying it hits older people living in isolated rural communities, particularly hard.

    "Their insistence that older people with supply difficulties and or complaints ring contact centres ignores the difficulty many older people have with using the telephone and assumes that every older person has access to a telephone," a spoekesman said.


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    #2
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    I can't see why any business would want to take over this chunk of the ESB's business. As an electrical retailer, they are generally over-priced. Their only advantage is the ability to put the cost of the appliance on the bill any pay back over time (12 months interest-free).

    I really don't see what all the fuss is about. Surely those who wish to pay their bills can do so by post or at the post office or direct debit or billpay.ie or telephone/internet banking. I really don't expect a slice of my ESB bill to be subsidising loss-making shops in rural areas.


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