RTÉ announces cutbacks of more than €25m

RTÉ HAS announced cutbacks of more than €25 million to cope with an expected advertising revenue downturn next year.

A pay freeze until September next year, including a freeze on all bonuses, the non-replacement of staff and the curtailment of foreign travel, have all been announced in a circular sent by RTÉ director-general Cathal Goan to staff yesterday afternoon.

Some as yet unspecified curtailment of programming is planned, but cuts will not be finalised until RTÉ presents its budget for next year in two months.

There will be no redundancies among RTÉ's 2,300 staff. RTÉ, like many media businesses, is struggling from a downturn in advertising revenue because of the recession. This year, its television advertising revenue is expected to be €25 million under budget, and a similar shortfall is expected in 2009.

RTÉ radio has continued to perform well despite the recession and is expected to be on budget.

Mr Goan told staff the intended cutbacks would deliver a break- even budget in 2009. However, management reserved the right to make further cuts if needed.

"If the already difficult conditions get worse, it will be necessary to examine our plans again and engage in further detailed discussions with the TUG [trade union group] and RTÉMA [RTÉ's management authority]," he warned.

A pay rise due in March under the national wage agreement will now be paid in September next year instead. Staff earning under €50,000 will receive a cash payment of €400 next year to make up for the salary freeze.

There will be no increments, merit increases, ex-gratia payments or bonuses at any level - a move which has been described as "contentious" by staff.

The six most senior executives in RTÉ, including Mr Goan, have already volunteered pay cuts for themselves of up to 17.5 per cent.

Staff vacancies will not be filled where feasible, and the contracts of some casual and fixed-term contract personnel will not be renewed. The measures are expected to save €10 million.

One freelance director who contacted The Irish Timessaid he had been told recently that his contract would not renewed although he had worked at RTÉ for several years "I'm not the only one. Basically, RTÉ is putting a clampdown on hiring any freelancers or independent people."

RTÉ's director of communications Bride Rosney said the station's highest earners were not affected by the cutbacks.

"They are quite separate because they are not staff," she said. "They have individual contracts and, by and large, people are on multi-annual contracts."

In 2006, the last year for which figures are available, the highest paid presenter was Pat Kenny, who earned €849,139, followed by Gerry Ryan who earned €558,990 and Marian Finucane who earned €455,190.

NUJ Irish secretary Séamus Dooley said there was now a "compelling" case for RTÉ's stars to share the financial pain.

"We don't negotiate for people on star contracts, but if our members are being asked to make sacrifice and if the executive board is making sacrifices, we would anticipate that people on star contracts would be asked to make their own contribution," he said.

Other savings will be made in in capital spending cuts, including building maintenance, and a cutback in third-party purchasing. RTÉ says the foreign travel curtailments will mostly be in executive travel, rather than for news stories abroad.

The RTÉ Trade Union Group said in a statement it was "mindful" of RTÉ's financial position but it would insist on being consulted at every stage of the process.