The Irish Times Ltd issued the following press release yesterday:
Senior management met representatives of the unions representing staff at The Irish Times today and were told of the urgent need for measures to maintain the company's competitiveness and efficiency.
Representatives of the company's Joint Consultative Council were also present. Other management members and editors were briefed simultaneously.
A drop in revenues, in the wake of the world economic downturn, combined with steeply rising costs, means that the company faces unacceptably severe losses unless extensive savings can be achieved quickly.
Union representatives were provided with information on the company's financial situation.
The union representatives were told that the company is seeking to shed 250 jobs from its workforce of more than 700, including some subsidiary operations. In addition, extensive non-payroll savings will have to be implemented.
In accordance with the partnership agreements which operate between the company and the unions, consultation will take place immediately on achievement of these objectives.
Management has told the union representatives that The Irish Times Ltd is happy to have an early assessment of the company's financial circumstances by an agreed and suitably qualified third party.
The company's aim is to spread job losses proportionately between editorial, commercial, production, central service departments and at all levels.
The company is examining the matter of terms for departing employees. It is hoped that as many as possible of the necessary 250 job losses will be voluntary. If the required savings are not secured by voluntary partings, it will be necessary to have involuntary partings.
The union representatives were told that the company's financial circumstances were such that monetary compensation for departing staff would not be at levels comparable to those which have been made available in the past.
The meeting was told that managers and editors would immediately begin a process of consultation in departments in order to ensure that the newspaper's traditionally high standards and range of services can be maintained.
The editor, Mr Conor Brady, told the meeting that while he deeply regretted the necessity for the measures now ahead, he was confident that The Irish Times would maintain its unchallenged place as the leading newspaper in the country in terms of its authority, its depth and its range of editorial content.
The newspaper's character and ethos remain the same, he said. "The Irish Times will remain independent of all external interests. It will remain primarily concerned with serious issues. It will continue to provide the most comprehensive news coverage and the most informed opinion and analysis."
Also at the meeting were the Chairman of The Irish Times Ltd, Mr Don Reid, Commercial Director, Ms Maeve Donovan, Director-Human Resources, Mr Michael Austen and the Director of Finance, Mr Liam Kavanagh. Mr Alex Burns of KPMG, who is acting as a consultant to the company, was also present.
As the company is now entering into consultative procedures with the unions, no additional details of measures to be taken will be made available until further notice.