RTÉ staff fear pay cut as extra €30m needs to be saved

FEARS of further pay cuts and possible redundancies at RTÉ have risen after station bosses revealed yesterday that they need to achieve additional savings of almost €30 million this year.

The need for more cutbacks — estimated at about 7% of RTÉ’s overall budget — was highlighted by RTÉ management at a meeting with staff, although they stopped short of outlining how they would be achieved.

RTÉ insiders claim recent Government measures including an order to pass on €10m of licence fee revenue to TG4 and the obligation to establish Digital Terrestrial Television will add €15m to the station’s costs in 2011.

They also include the recent decision by the Minister for Social Protection, Éamon Ó Cuív to place a cap on the amount that his department will pay RTÉ for the provision of TV licences to pensioners.

RTÉ’s outgoing director general, Cathal Goan, informed staff yesterday there were no current proposals to seek redundancies or further pay cuts from the broadcaster’s 2,200 employees.

However, it was made clear to staff that savings would need to be achieved.

An agreement between RTÉ management and employees 18 months ago which saw salaries reduced by 2.5%-12.5% officially lapsed on December 31.

The agreement combined with cuts to the salaries of high-profile, contract workers like Pat Kenny, Ryan Tubridy and Marian Finucane resulted in annual savings of about €10m.

However, RTÉ sources said it was virtually certain that the initial expectation that original salaries would be restored in 2011 would not now take place because of the station’s deteriorating financial situation.

Concern that savings of €30m may not be reached without tackling labour costs has increased fears that RTÉ will be forced to seek further pay cuts or redundancies later in the year.

RTÉ bosses and union representatives have agreed to enter talks to discuss budgetary measures and pay issues.

Any decision about possible pay cuts or redundancies at RTÉ is likely to fall to the incoming director general, Noel Curran, due to take up office in a few weeks.