Indo seeks staff pay cuts to save €1.5m

INDEPENDENT News & Media is looking to make cost savings of around €1.5 million in its Irish operations next year through the implementation of pay cuts for staff of between 2.5% and 10%.

INM yesterday began a series of staff meetings at its Irish operations — including the Irish Independent, Sunday Independent, Sunday World and various regional titles — where management detailed its cost reduction proposals.

It is understood that staff members earning €40,000 or less will have their pay frozen for the next 12 months, while those being paid between €40,000 and €50,000 will see a 2.5% cut. Staff currently on salaries of between €50,000 and €100,000 will see their wages cut by 5%. Staff earning more that €100,000 face a 10% pay cut. Staff expenses are also likely to be curtailed.

A January 9 deadline has been set for staff to respond to the offer, which includes an option whereby they can buy into INM at a price of 40c per share.

Management is hoping for a 100% acceptance rate. The group is hoping the move will negate the need to make any job cuts within its titles.

A company spokesperson said: “Management is seeking the co-operation of its staff to deliver cost savings appropriated by the current economic and advertising climate.”

Board members will also see their salaries cut by 10% and, along with forgoing bonuses, could see their remuneration packages decline by up to 50%.

The National Union of Journalists has described the January 9 deadline as “unrealistic”. It also expressed anger at an attempt to unilaterally alter the terms and conditions of journalists.

Meanwhile, it is understood that close to 50 people have taken up the offer of redundancy at the Irish Times, with more applications expected to follow. The newspaper recently said it was looking to shed up to 60 jobs in a bid to cut operating costs ahead of what is expected to be a loss making year in 2009 for the newspaper.