Talks to start on 10% pay cut request at Irish Examiner and Evening Echo

UNIONS representing staff at the Irish Examiner and Evening Echo newspapers are to start talks on Wednesday on a management request for a 10% pay cut.

Workers at Examiner Publications Cork Limited (EPCL), publishers of the Irish Examiner and Evening Echo, were told at a staff briefing on Saturday that the company’s defined benefit (DB) pension scheme currently has a €20 million deficit.

Members of the scheme, one of a number operated by the company, were told that the trustees of the DB scheme are obliged to submit a funding proposal to the Pension Board by November 30, 2010 which will result in “a significant reduction in pension scheme benefits”.

The company gave staff at the well -attended meeting a business update focusing on difficulties in the Irish economy and the challenges facing the media industry, including the Irish Examiner and Evening Echo.

“The company has tried to avoid pay cuts for as long as possible while other media companies have been implementing pay cuts over the last two years.

“The company believes that pay cuts are now essential to protect the future of the business and employment within the business. For this reason, the company has requested the co-operation of staff in taking a 10% pay cut from October 1, 2010,” EPCL said in a statement.

EPCL workers were told at the meeting that due to the size of the pension deficit, the Pensions Board requirement to fully fund the pension plan within a 10-year period and ongoing problems in the Irish economy and media industry, the company will be unable to fund the full deficit within the required 10- year time frame.

EPCL, a wholly-owned subsidiary of Thomas Crosbie Holdings Limited (TCH), gave a commitment to make additional annual pension contributions of €0.5m to the defined benefit pension plan for the next 10 years. Staff at other TCH companies are also being asked for a 10% pay cut. Irish Examiner and Evening Echo staff earlier this year agreed to a pay freeze and “pension holiday”.

Following Saturday’s meeting an NUJ spokesperson said journalists are angry at being asked to make further sacrifices just six months after agreeing significant reductions on the understanding salaries would not be cut this year.

“Our members are fearful of little or no return from pensions they’ve been paying into for as long as 40 years in some cases, and staff are very worried about a further fall in incomes,” said an NUJ statement.

The Unite trade union said it would not make any comment in advance of Wednesday’s meeting.

SIPTU official Marie Kearney said: “The ink is barely dry on recent restructuring, where our members gave major concessions, and it seems rather early to be revisiting this issue after being assured that the last deal would put the company on a sound footing going forward.”