Independent News & Media managing director, Mr Gavin O'Reilly, has warned that the November 2000 launch of the group's new £40 million (€50.8 million) printing plant at Citywest on the outskirts of Dublin will not be delayed by resistance from trade unions representing the newspaper group's production and maintenance staff.
Mr O'Reilly yesterday declined to reveal the exact number of jobs that would be lost as a result of the move to the new plant which would print the Irish Independent, Evening Herald and Sunday Independent. But he stated bluntly: "There will be job losses and changes in working practice."
He said that Independent was committed to a programme of voluntary severance. "It's a two-way street. The company is investing to provide the most modern production facilities, but we must establish new staffing levels and work practices to meet the competition.
"We will be fair, tough and vigorous in negotiations," he said, adding that the existing voluntary redundancy package - equivalent to about four times gross annual salary - was on offer to those staff volunteering for redundancy.
Mr O'Reilly insisted: "Demarcation and resistance to technology is not acceptable and conflict is not an option."
He added that Independent would have to have an agreement on manpower levels, redundancies and working practices by the first quarter of next year to allow for the intensive training of those who would staff Citywest, if the November 2000 start of production was to be met.
"The investment criteria leave no choice but to meet the November 2000 deadline. In Ireland, production inefficiencies are eating into profit growth and we need a level playing field," he added.
He said that Independent would expect to generate a return on investment from Citywest of more than 20 per cent.
He would not be drawn on the exact number of staff required at Citywest, but said "a lot of functions will be no longer required".
Judging by the level of automation indicated at yesterday's presentation to staff, it will be far fewer than the 118 currently employed in production and maintenance in Middle Abbey Street.
Mr O'Reilly said that negotiations on voluntary redundancies and working practices would only involve production and maintenance trade unions. This suggests that Independent is delaying negotiations with its journalists on work changes in the editorial area until new arrangements with the production/maintenance unions are finalised.
The investment in Citywest will cost Independent £50 million - £40 million of which is on the German-manufactured printing and associated equipment. The printing plant itself will be located in a new building, with the 200-foot-long and 57-foot-high glass wall of the main print-room facing directly on to the Naas Road at Citywest. The main despatching and inserting equipment will be located behind the print room.
The MAN Roland printing plant will be able to produce a 64-page newspaper in a single run with full colour on every page and has the capacity to print 75,000 newspapers an hour.
The inserting machinery would enable Independent to produce a multi-section newspaper of up to 256 pages, Mr O'Reilly said.
