Bord na Móna staff may share €11m
THE 1,700 staff at Bord na Móna could be in for an average share windfall worth over €6,500 if they vote for an employees share option scheme, which will see the employees receive 5pc of the company.
Union members at Bord na Móna will vote over the next couple of weeks on whether to accept an employee share ownership plan (ESOP) worth a total of over €11m, sources close the company have confirmed.
For the sake of the plan, Bord na Móna has been valued at about €225m.
However, property sources say that when land banks and subsidiaries are included, the company is more likely to be worth over €500m.
The vote comes ten years after discussions on the introduction of such a scheme first began.
However, the scheme hit another stumbling block recently ahead of the vote after the Government introduced tough rules on its proposed structure.
The Government, which controls Bord na Móna, has introduced a so-called 'drag-along, tag-along' clause which would require that the holders of the ESOP, or workers at Bord na Móna, to sell their shares at the same price and time as the main shareholder.
This proposal was not included in the establishment of previous ESOPs at semi-states like Eircom and Aer Lingus which are more lucrative both in value and structure. If, for example, the Government decided to sell Bord na Móna for cash, the members would be forced to do the same, therefore potentially triggering tax liabilities - an approved trust or plan is generally designed to be tax-efficient.
Another reason for the delays in the talks, which have been ongoing since 1996, is that the Government is also insisting that the shares be held by individuals rather than a single block by the trust, or the trade unions.
The ESOP will have a lifespan of three years while workers will be given the opportunity to move their shares to the plan.
Members of the ESOP will be given a chance to cash in their shares in an internal market. They will also be able to release cash tax-free at a later date.
A letter to the members of the groups of unions, seen by the Irish Independent, states that the proposals fall "far short of what the ICTU BnM Group of Unions fought for as part of the a shared ownership scheme for all".
It adds that the group of unions is making no recommendation for or against acceptance, as to recommend voting against would create the impression that "somehow there was more to go back and bargain for".
"Unfortunately, on this occasion this is not the case. If rejected, the proposals will be put on the shelf indefinitely," the letter stated.
- Ailish O'Hora
