Independent Newspapers is to seek a five per cent pay cut from staff and the suspension of the Programme for Prosperity and Fairness (PPF) in an effort to drive down costs. The move comes as The Irish Times has sought up to 250 redundancies and other cost cutting measures to tackle a downturn in revenue.
Senior management at Independent Newspapers (Ireland) Ltd meets on Monday to finalise proposals ahead of a meeting with unions on Tuesday.
One senior management source said yesterday it would be inappropriate to comment publicly on the measures ahead of Tuesday's meeting.
However a document circulated to senior editorial and other staff says the company wants to cut all salaries by five per cent and seek suspension of the PPF "until such time as increases mirror enhanced productivity". It also seeks "full and proper utilization of all redeployed staff". This is thought to be a reference to personnel paid up to £40,000 each to relocate to the company's printing plant at Citywest, some of whom returned to the head office in Abbey Street subsequently.
An increase in the working week from 32 hours to 35 hours is under consideration. At present, all editorial staff work a four-day, or four-night week.
The company wants reporters and sub-editors working days to revert to five-day working. Casual staff at the newspaper, including freelances, are also to be cut back drastically. National Union of Journalists organiser Mr Seamus Dooley said last night "no specific proposals had been put to the unions" but he had heard "on the grapevine that the company is planning to walk away from its responsibilities under the PPF". He said: "It would be outrageous if a leading Irish company were to attempt to do so based solely on the economic difficulties of a competitor The Irish Times.
"If Independent Newspapers wish to plead inability to pay the PPF there are procedures laid down and the group of unions would no doubt expect total transparency in regard to the provision of financial records."
SIPTU branch secretary Mr Mick Halpenny said there was a meeting planned with the company on Tuesday. But he warned: "There is no question of pay cuts as far as we are concerned. Independent Newspapers is the most successful newspaper publishing group, financially speaking, in the country."
Financial advisers for the unions have already begun examining accounts at The Irish Times. Unions and management are meeting on Monday to finalise terms of reference for the examination as a preliminary to talks on cutbacks.
If Independent Newspapers (Ireland) Ltd seeks to withdraw from the PPF, the Irish Congress of Trade Unions is likely to refer the dispute to the National Implementation Body (NIB). The NIB was set up to police the PPF.