Independent Newspapers in Dublin is seeking up to 205 redundancies, almost a third of its workforce in the capital, by the end of next month. Emmet Oliver reports.
The company announced yesterday that it plans to outsource many of the functions currently carried out in its Middle Abbey Street operation. The Irish Independent, Evening Herald and Sunday Independent are produced at its Dublin office.
Redundancies will be sought in clerical, administrative, telesales, finance and pre-press areas. Journalists in Middle Abbey Street and printing staff at City West are not affected by the decision.
Clerical, administrative, telesales and pre-press functions are increasingly being outsourced by the company and it is negotiating with various "service providers" to perform these tasks in future.
Staff must make up their minds whether to accept the changes by May 21st. Unions last night said they would not accept any compulsory redundancies and any changes must be implemented via agreed procedures.
The company said a generous voluntary severance scheme was on offer, but it acknowledged 105 of the 205 staff, mainly in clerical and administrative areas, did have the option to transfer to the outsourced companies if they wished. Some of these are in Northern Ireland, while a finance company used by Independent is based in Clonakilty, Co Cork.
The company said in addition to these 105 positions, a further 70 obsolete posts also needed to go. It said the positions were no longer needed because of evolving technology and improved work practices.
The company said 30 staff had already accepted the package, bringing the total number of redundancies to 205.
Independent said comprehensive packages on offer ranged from €40,000 for an employee with short service to €260,000 for an employee with 40 years' service.
Staff are being offered four weeks of pay per year of service plus statutory entitlements.
Mr Vincent Crowley, Independent Newspapers chief executive, said that voluntary severance had been on offer since October but there had been a "disappointing uptake".
He said the Independent board had been forced to revisit its policy of "volunteerism".
"This change is essential if we are to to be in a position to fund further investments in our products in an increasingly sophisticated and competitive market. Achieving a low-cost base across non-core activities is crucial to this long-term investment programme."
He also said that "compulsory redundancy will apply to those who have not accepted the voluntary package by May 21st".
The company met with staff and trade unions yesterday to inform them of the decision.