Large media organisations to cut pay as revenue falls

Some of Ireland’s largest media organisations have either introduced pay cuts or are in the process of doing so, owing to the sharp fall in advertising revenue. Among those affected are Ireland’s national broadcaster, Radio Telefís Éireann, and the two main national newspapers, the Irish Times and the Irish Independent. A career-break scheme has also been proposed at another Irish newspaper, the Irish Examiner.

Media organisations in Ireland have been badly hit by the recession, with the country’s largest newspaper titles and its national broadcaster, Radio Telefís Éireann (RTÉ), among those most affected by a downturn in advertising revenue. This has forced RTÉ, the Irish Times newspaper and the newspaper and communications group Independent News and Media (INM) to firstly seek pay freezes, before moving on to a secure agreement on salary reductions. In each case, pay rises agreed by the social partners as part of the [Transitional Agreement (2.86Mb PDF)](http://www.taoiseach.gov.ie/attached_files/Pdf files/Taoiseach Report_web.pdf) of 17 November 2008 – which comes under the [Towards 2016 (2.86Mb PDF)](http://www.taoiseach.gov.ie/attached_files/Pdf files/Towards2016PartnershipAgreement.pdf) framework social partnership agreement – were not paid.

Proposed pay cuts at RTÉ

In the first week of June 2009, the group of trade unions at RTÉ voted on pay cuts that would, if accepted, remain in place until at least the end of December 2010 for a large proportion of its 1,800 employees. At this point, the management and trade unions will conduct a joint review of the situation. It was acknowledged by both sides that a forecast deficit of €67 million in revenue had to be addressed.

Employees earning €25,000 a year or less will not be affected. The cuts are to range from 2.35% for those earning just over €25,000 a year, to 12.5% for the top-level earners. Increments are to be frozen for 12 months for staff earning more than €40,000 a year. In addition, ‘privilege days’ at Easter and Christmas are to be reduced in both 2009 and 2010, while travel and subsistence rates are also to be cut back.

RTÉ refused to agree to a formal jobs guarantee, although management has maintained that the cost reduction strategy aims to preserve existing job levels. RTÉ’s Director General Cathal Goan insisted that the company would be seeking to protect employment ‘to the greatest extent possible’.

In a brief statement issued before the trade union vote commenced, the RTE trade union group – which includes the two largest unions, the National Union of Journalists (NUJ) and the Services, Industrial, Professional and Technical Union (SIPTU) – outlined:

In negotiating with management, the trade union group, mandated by its constituent unions, set as its priorities the maintenance of employment and the achievement of significant alterations to RTÉ’s original proposals. These priorities are reflected in the amendments accepted by RTÉ management.

INM pay cuts

Earlier this year, almost 600 staff at INM, which publishes the daily Irish Independent newspaper, were asked to agree to amendments to their terms and conditions of employment. This provided for a permanent reduction in annual salaries.

More specifically, staff earning €40,000 or less were asked to accept a pay freeze. Those earning between €40,000 and €50,000 were subject to a 2.5% pay cut. At the same time, a 5% pay cut was applied to staff earning between €50,000 and €100,000, while those earning over €100,000 were asked to accept a 10% reduction in pay.

However, by way of potential compensation, INM introduced a new share option scheme for staff in return for the pay cuts and freezes. The scheme may help staff to recoup some, or all, of their lost pay in future years.

NUJ and SIPTU members had to sign up on an individual basis to the pay cut programme, as companies are not usually entitled to unilaterally alter individual terms and conditions without consent.

Salary reductions at Irish Times

The Irish Times newspaper has secured salary reductions in response to a projected fall of €20 million in advertising revenue this year. After securing an agreement with the trade unions, management introduced a 5% cut for staff earning between €40,000 and €100,000 annually, and 10% for those earning more than €100,000. However, no reductions were imposed on employees earning under €40,000.

Irish Times Managing Director, Maeve Donovan, as well as the newspaper’s Editor, Geraldine Kennedy, both took a 20% pay cut. In addition, a 15% pay cut was accepted by the newspaper’s Deputy Managing Director, Liam Kavanagh, and Deputy Editor, Paul O’Neill. Moreover, a new set of cost reductions, which are likely to include changes in work practices, were tabled by management in May 2009.

Career break incentive at Irish Examiner

Meanwhile, staff at Thomas Crosbie Holdings (TCH), which publishes the daily Irish Examiner newspaper, have also been subject to a pay freeze for 2009. In addition, two and three-year career breaks have been proposed. An employee opting for a two-year career break would receive 50% of one year’s salary, capped at a maximum of €20,000. The Irish Examiner’s plan is similar to one introduced at the financial services company, Irish Life and Permanent.

Brian Sheehan, IRN Publishing