The Irish Times has reached an agreement with its printing union on more flexible working, redeployment and redundancies. In return, the company is providing a profit-sharing scheme, as well as lump sums to "buy out" old work practices.

This has cleared the way for negotiations with other unions on radical changes in the newspaper's operations, including the acquisition of a new press.

The managing director, Mr Nick Chapman, described the agreement as "a significant step forward" and a recognition by the Irish Print Group, a division of SIPTU, of the increasing competition "both from other newspapers and new media".

"Technology is also driving change and I think the new agreement is based on an understanding that, given that change, we have to change the type of agreement we have with our trade unions."

The type of agreement he wanted to see developed was one which recognised the need for more flexible working. In return, the company had agreed a profit-sharing formula with the employees.

Mr Chapman declined to give details of the scheme before holding discussions with other unions within the company.

However, Mr Sean Galavan, a spokesman for the IPG, said that it would allow for up to 8.5 per cent of company profits to be paid out.

He also said that lump sums of £12,000 - including a profit-sharing element - would be paid to all printers, including eight who are accepting early retirement packages.

Mr Galavan said the profit-sharing agreement was an excellent one and unique in the print industry in Ireland.

Mr Chapman has already held an initial meeting with the NUJ and intends meeting unions representing other employees shortly to brief them on development plans.

He sees securing the agreement of the unions to change "as a priority for the people who work here. Another priority is the acquisition of a new press. That investment, in turn, will drive a lot of change and investment elsewhere in the company".