Independent Newspapers has withdrawn its demand for staff to take a 5 per cent pay cut and accept suspension of the Programme for Prosperity and Fairness. However, it is seeking a return to the five day week, the elimination of overtime for bank holidays, and shorter holidays.
At a meeting with unions yesterday newspaper management said advertising revenue had fallen and, while the company remains profitable, it needed to cut costs.
The most serious concession being sought is a return to the five day week. During the 1970s Independent Newspapers (Ireland) Ltd introduced a four day week in lieu of pay increases.
It now wants staff back working five days and those on nights, who will remain on a four shift week, to work longer hours. Overall staff would be required to work at least 35 hours a week instead of 28. The current six weeks holidays would be cut to five weeks, although the number of days off would remain the same because these would be based on the longer working week.
The company wants to replace current overtime payments with time off in lieu. Staff working bank holidays would receive a day off. There is to be a freeze on recruitment and all casual staff are to be laid off.
Permanent employees will be asked to make up any shortfall. The company says there will be no voluntary severance package and anyone seeking redundancy will be offered the statutory minimum.
The main factors driving the company's agenda appear to be concern that The Irish Times will become more competitive if it succeeds in reducing its cost base through large scale redundancies.
In the third quarter of this year advertising revenue for the Evening Herald is understood to have fallen by 7 per cent and that for the Irish Independent fell by 1 per cent. Sunday Independent advertising revenue rose by only 7 per cent, compared with 35 per cent the previous quarter.
The company has sought a union response to its cost cutting proposals by December 14th. Human resources director, Mr Declan Carlisle, said it "made no apology for being a profitable company and wanting to remain a profitable company.
"When you look at market conditions it is prudent to cut costs." Job security was linked to profitability, he said. Mr Carlisle estimated the value of the savings at around £1 million a year.
Union representatives query his figures. They said cutbacks in overtime payments alone would be worth over £2 million. SIPTU branch secretary, Mr Mick Halpenny, said it was "unseemly for such an undeniably profitable company to seek cutbacks from the workers who made that profit in the first place". The unions are meeting on November 29th to consider their response.