RTÉ announces cuts as ad revenue plunges

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 this afternoon.

Some unspecified curtailment of programming is planned, but 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. The fall is most pronounced in television. RTÉ Radio is not affected to the same extent.

The broadcaster is expecting the dramatic fall-off in advertising revenue to continue next year.

Mr Goan told staff that the intended cutbacks will deliver a break-even budget in 2009. However, management reserved the right to make further cutbacks in the event of a further deterioration in the broadcaster's finances.

"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 total of 40 per cent or around €10 million will be saved through personnel savings. A pay rise that was due to be paid in March under the terms of the National Wage Agreement will now be paid in September next year instead.

There will be no increments, merit increases, ex-gratia payments or bonuses paid to staff at any level. The six members of the RTÉ Executive Board compromising of Mr Goan, the chief financial officer Conor Hayes, the managing directors of television and radio, Noel Curran and Adrian Moynes, the managing director of news Ed Mulhall and director of communications Bride Rosney have all volunteered pay cuts for themselves of up to 17 per cent.

Staff earning under €50,000 will receive a cash payment of €400 next year to make up for the salary freeze.

Staff vacancies will not be filled where feasible and the contracts of some casual and fixed term contract personnel will not be renewed.

There will a review of all third party purchases and procurement process and several capital programmes have been suspended.

The RTÉ Trade Union Group, which mostly involves SIPTU and the NUJ, said it welcomed the "strong commitment to protect the quality of both employment and output".

It also said it would have to consider the impact of an effective pay freeze on lower-paid workers within RTÉ.