Compulsory job losses not ruled out at RTÉ

RTÉ has warned staff that compulsory redundancies cannot be ruled out as the national broadcaster admitted it is facing losses of €68 million this year.

The station’s director general, Cathal Goan, informed employees yesterday it was planning a wide range of cost-saving measures, including a proposed e10m reduction in payroll costs.

RTÉ is seeking additional savings of e41m this year on top of a e27m plan of cutbacks already under way.

Bosses at Montrose have indicated potential savings will come from across-the-board pay cuts, reductions in expenses and reduced overtime as well as other changes to existing work practices.

It is estimated that 50% of all RTÉ revenue from TV licence fees and advertising, which totalled more than e441m in 2007, is spent on salaries. Around 2,200 people are employed at the broadcaster.

Mr Goan said their deteriorating financial position was mainly due to a sharp downturn in advertising revenue.

Although he could not guarantee there would be no job losses at RTÉ, Mr Goan expressed confidence that implementing a range of measures would achieve the necessary savings.

He also promised any pay cuts would be “as equitable as possible” so that those on higher salaries would take a proportionately larger reduction in their wages.

Although top-earning broadcasters like Gerry Ryan and Ryan Tubridy have controversially refused to take voluntary pay reductions, they are likely to face renewed pressure to take a substantial cut.

It is also understood that RTÉ has already introduced cutbacks in the employment of casual and freelance staff, with such workers finding their shift patterns have been reduced.

Mr Goan admitted the cutbacks would also impact negatively on the level of in-house programming which currently averages around 48% of prime-time viewing on TV.

“We will see a certain thinning out in the schedule,” he said.

RTÉ has also sought an increase in the licence fee this year, although Mr Goan acknowledged the Government may not sanction any hike on the existing e160 fee in the current economic climate.

In a statement issued yesterday, the RTÉ trade union group said its priority in any discussions with the station’s management would be the protection of employment.

Both sides are due to meet in a fortnight, when it is expected management will present a detailed proposals on pay cuts for staff.

RTÉ staff have already agreed to postpone a pay increase due under the National Wage Agreement this month until March 2010.