Late rush for RTÉ severance package

AN RTÉ voluntary redundancy and early retirement scheme aimed at securing at least 70 job cuts received a large number of last-minute applications before a 5pm deadline yesterday.

In June RTÉ said the job cuts were essential in light of the €30 million deficit facing the station this year.

RTÉ has been haemorrhaging millions since the recession took hold.

Broadcasting chiefs were fearful that they would face another budgetary headache if the package was under-subscribed, as was the case with the last deal two years ago, which resulted in this latest scheme.

However, last night RTÉ expected that the number of applications would meet and possibly exceed the target number of 70.

Among the big names who have applied are news anchorwoman Anne Doyle, who has been the doyenne of the national airwaves for more than 30 years. The Wexford woman will turn 60 next January.

An RTÉ source said that competition is already hotting up to fill the Queen of News’s shoes, with ladies in waiting Una O’Hagan, Eileen Whelan and Eileen Dunne being tipped as possible ascenders to the throne.

It is understood that the “profile” of any departing staff member is not an issue with RTÉ chiefs.

Where a staff member accepts severance, it is conditional on the cutting of a post and the drop in head- count being achieved.

Therefore, any replacement can only be internal and reorganisation will be managed in a range of ways, depending what positions need to be filled.

Contingency plans had been put in place to deal with additional redundancies if a greater number of workers applied to take part in the scheme. RTÉ has said that it remains unclear what the next steps or the responses to the final total of applications will be.

The package is estimated to cost €10m, but the station believes it will recover the cost within two years, and will save €5m a year in the longer term.

RTÉ chiefs could have been forced to look at compulsory redundancies or slashing finance from their freelance contracts if the feared under-subscription occurred.

Big names such as Pat Kenny, Marian Finucane, Joe Duffy and Ryan Tubridy have already been hit with massive cuts.

It is understood that those who have applied will know by mid-October if their applications have been approved, with retirement starting from November.

Staff taking voluntary redundancy will receive up to six weeks’ pay per year of service, capped at 130 weeks. Employees covered by a defined contribution pension scheme, which carries fewer guarantees of retirement income, will also be entitled to statutory redundancy.

Staff over 55 availing of early retirement will receive an ex-gratia lump sum of up to €60,000 depending on age, but it is understood that most of those who have applied will also be entitled to sums of between €80,000 and €150,000.

Both the redundancy and retirement schemes will be calculated on the basis of the salary that applied prior to pay cuts introduced in June 2009. RTÉ described the package as fair, prudent and realistic. Yet the package will leave those applying more than €300 worse off per year compared to former employees who availed of a similar retirement scheme two years ago.