Staff at Newsquest titles in certain regions have been asked to take a week’s unpaid leave as a cost-cutting measure, according to reports by insiders.
Regional managing director Gavin Steacy is visiting newspapers across the Wales, Gloucestershire and Midlands South areas this week to outline how the company plans to control costs in what is being described as an “extremely challenging year.”
An internal memo, seen by HTFP, was sent round to staff earlier this week informing them of his presentations, which are being made in response to ‘poor trading conditions’ during this month.
And although there has been no official confirmation from the company, Mr Steacy is understood to have asked employees who attended the presentations to take five days ‘furlough’ or unpaid leave as an alternative to job cuts.
The memo said: “All the early trading indications point to 2011 being an extremely challenging year for our business – perhaps the most challenging year we have experienced to date.
“The Wales, Gloucestershire and Midlands South regions have experienced poor trading conditions during January. Our revenues are considerably below last year’s performance.
“Although we are still early in the year, there are no economic indications that this situation will improve noticeably.
“It is important therefore, that we take all actions necessary to drive revenues and control costs sooner rather than later.”
It added none of the choices were easy but some were ‘less palatable than others’ and Mr Steacy would outline the proposed actions to staff.
One staff member from the region said: “As staff we think this is absolutely ridiculous. Newsquest continues to make large profits but still we have to go through yet another round of penny-pinching.
“We have had a pay freeze, which is, of course, a pay cut in reality, imposed for more than two years and every centre has suffered redundancies, impacting on staff morale and the quality of the newspapers we work so hard to produce.”
Chris Morley, the Northern and Midlands organiser at the National Union of Journalists, said he was concerned about the move and would speak to chapels in the Midlands South area after their presentations.
He said: “They want to hear what Gavin Steacy has to say next week but I can assure him there’s going to be a very bad reaction.
“I would question the need for it and I think the company needs to be open once and for all about its finances.”
Newsquest chief executive Paul Davidson had not responded to requests for a comment at the time of publication.
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Let’s have a comment from Paul Davidson on this story – sooner rather than later.
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how about taking the unpaid leave at 5pm, or whenever it is the working hours officially end.
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Will Mr Steacey or Mr Davidson be telling staff when they plan to take their own unpaid leave? Oh no, let me guess – yet again, one morale-sapping, wage-depleting rule for the ordinary hard-pressed workforce, another for directors.
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Two per cent pay rise from April. Five days unpaid leave. Give with one hand. Take away with the other. And then some. Thanks for nothing Mr Steacy.
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I agree with All Subbed Out – why is it the ‘We’re all in it together mentality’ hasn’t extended to Newsquest directors?
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Hell, they will give JP, Trinity, etc an idea. Off on holiday now.
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Let’s not forget that the last year this happened, 2009, was the year Paul Davidson enjoyed a £100k pay rise. Oh, and also the year four directors of Gannett (which owns Newsquest) were awarded $4m in bonuses – part of which was specifically as a reward for introducing furloughs: http://gannettblog.blogspot.com/2011/01/how-furloughs-helped-spur-4m-in.html
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Really sad to hear this latest attack on regional press. The worry is that once you accept the principle of unpaid work, even for 5 days, they’ll be back for more.
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Bet we’ll have to get all our leads in before we have our unpaid week! Cheers. If Davidson took a furlough it would save Newsquest more than £11,700!
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anyone else noticed that under the Big Society the crafty, greedy well-advised rich are staying rich and the rest are getting kicked in the unmentionables. But there will be no revolution on our behalf. Hacks rank with the public on sympathy levels with bankers, politicians, estate agents and overpaid Premiership footballers and managers. Zero. So it’s a case of stick it out or get out, sad to say.
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I work at one of the titles at this group. In a presentation we were told that there will be job losses. Unless we take unpaid leave. In which case there would still possibly be job losses. And here’s the sweetener. If you agree to unpaid leave then you get a 2per cent pay review. If you don’t take unpaid leave then you don’t. Also, if you take unpaid leave you get three months notice if you lose your job. If you don’t you’ll get two weeks. In fairness the MD has said he has taken a week unpaid but in fairness he can afford it. Yes these are difficult times but I earn a pittance and have children. So it’s quite hard to swallow when you’re asked to take unpaid holiday and still face the prospect of losing your job. The shame of it is that part of the region I work in is doing ok but we’re all being made to pay for the failings of others. After this week’s meeting morale has hit an all time low. We’ve already lost so many staff that we can’t even think where any more cuts could come from. So from a struggling patent I’d like to wish the MD and all those higher up a happy new year. Enjoy your unpaid leave in whichever far flung corner of the world you choose. I’ll spend it at home, watching the pennies and eating beans on toast while trying to catch up on sleep from all the extra hours of work I put in unpaid every week anyway. Thanks.
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Apparently Paul Davidson did take a furlough last year – around a month I was told. Just that it didn’t quite offset his 20% pay rise last year.
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Paul Davidson should take a permanent furlough. Hopefully his successor would communicate with the staff and the press. A successful business is created by making people who work for it happy to do so. You only have to read some of the posts here to realise that this is far from the case with Newsquest.
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During the past year a centralised subbing pool has been introduced where I used to work. The number of subs has been reduced and those remaining work flat-out producing several weeklies and a daily paper. They work well beyond the hours in their agreement, without having time to take even a short lunch break. Heav en only knows what sitting in front of a computer screen for eight or nine hours will h ave on their future health. Caring management? That went by the boatrd a long time ago.
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All Newsquest staff should should jump at this opportunity. The editorial staff could all take the same week off and the ad staff could take a different week off. Basically a management sanctioned two week strike.
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Sadly many staff members have shot themselves in the foot by not joining the NUJ. They have allowed management to walk all over them. They are conscientious, hard working people who are being taken advantage off. The economic problems are just been made use of by those in charge.
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Dear Mr Steacy, sending your sports reporter to New Zealand. Don’t. There’s a £6,000 saving for you.
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Whats the big deal?I think all these negative postings are a waste of time. Mr Steacey took the time to visit our centre personally to explain the situation and for that I am grateful. Im disappointed that there will no doubt be job losses but we are already in this situation so we should try and help get ourselves out of it and perhaps save some of our colleagues jobs along the way. I for one am not against the furlough leave and it seems to me the most sensible solution at this moment in time. As for Mr Steacy and Mr Davidsons salaries, You can waste your life worrying about how much other people earn so I say fair play to them for climbing to the top of the ladder and being successful
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I dearly hope Dave is taking the mickey. If his forelock tugging is genuine…has he got a private income? Is he an undercover Newsquest cop? It’s because of people like him that Newsquest & Co can ride roughshod over their employees. People like him did their level best to destroy the NUJ in 1979; people like him refuse to join the union and undermine their colleagues at every turn. Sadly, in spite of my previous comments, I bet he isn’t getting bribed for this, he’s just a sucker.
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Sensible solution? What on earth is to be gained by anyone by offering a 2% pay rise & then asking staff to take unpaid leave? They clearly don’t appreciate that Newsquest workers are absolutely sick of being treated this way. As morale, enthusiasm & staffing levels drop off the standard of the product suffers. Once again it’s an example of economic suicide by the powers that be.
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Im not a wind up, its my right to have an opinion and by jumping on anyone who disagrees with you might be the reason the NUJ wasnt succesful. This blame culture is no good for any business. We are in a tough situation and my point was simply that the furlough makes the best of a bad situation. As for the 2% rise, Id rather have that with the furlough than just the furlough alone.
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Sadly, not enough journo’s are in the NUJ; which appears to have become toothless and impotent over the years.At one time with the amount of job losses they would have called a national strike.
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I imagine all regions are to receive the 2% pay increase, but this particular region is ‘suggesting’ furlough to offset the cost.
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Get real. What options are there – keeping a job or walking away from it. And there are very few jobs out there in the real world, so hang on as long as you can. Suffering comes in two forms – moan as much as your want to as long as your pay lands in your bank account, or moan as much as you want to and your bank gets on your back. Work it out for yourselves.
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It will be interesting to see how they square the two weeks/90 days arrangement with current employment law – especially if they make more than 20 redundant. Massive unfair dismissal lawsuit and three months wages for everyone, ahoy!
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The law gives all employees the right to a minimum amount of notice. This period of notice is:- •one week for employees who have worked for their employer for one month but less than two years; or •two weeks if the employee has worked for their employer for two whole years; and •one extra week for each further whole year’s employment at the date the notice period expires, up to a maximum of twelve weeks’ notice in total. However, if you are being dismissed because you are 65, or above normal retirement age, the rules about notice are different. Contractual notice Your contract of employment may give you more notice than the minimum the law gives you. However, you can never get less than the minimum, no matter what your contract says.
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Ginger Whinger: See my comments about 1979, and Dave’s reply. He and his (more probably his dad and his ilk) started the rot in 1979 by going to court and getting the strike declared illegal, rather than stand with their colleagues. They drove a wedge into the NUJ; Mrs Thatcher merely hammered it right through. If it wasn’t for the likes of him, the NUJ would be much stronger and even if managements were the same they might still be obliged to treat their employees with more respect.
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If you are so glad your out of it, why are you so intent on stirring up bad feelings and making the whole situation appear worse? Of course its difficult for staff at present but we are where we are because of the economy now so im not sure what on earth 1979 has to do with anything!
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Two per cent pay offer as long as you take off two per cent of the year without pay.
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Unlike almost everyone who posts to these stories, I work for Newsquest and am grateful I have a job. Although I haven’t been offered the opportunity of taking unpaid leave, I’d relish it. Many other organisations do this. Members of the NUJ, from the attitude of those I work with, are narrow-minded, thankless and, frankly, when they make their affiliation to the union so transparent, a drain on the resources of those who bust a gut for not only the love of the job but the fact, in such a drastic economic downturn, they have a job. I sit back and await the abuse.
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Unless I am totally off my rocker, I stand to lose £29 per month (plus the fact I won’t be paying as much tax and NI) if I take a week’s unpaid leave. A week unpaid sounds a lot but balanced over 12 months, I could do without it for an extra week off work. If this helps towards saving a job, bring on the presentation.
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Saving towards a job is one thing, saving towards Paul Davidson’s next pay rise in another. When they last asked us to do this in 2009, his pay went up by more than £100,000, something he’s never taken the time to explain to staff. I’m not in a rush to contribute to his next pay rise by opting out of my own.
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I say take a five-day furlough. Everyone take it at the same time. Call it a strike Show them we mean business
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Last time this was tried it wasn’t an actual week off. Instead the company asked staff to take ten afternoons off over the course of a year and accept a cut in their annual pay by a weeks wages. An unpaid week off doesn’t sound too bad. Ten afternoons is a bit different.
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Hey Dave, does the name on your passport say ‘Gavin Steacy’?
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Of course my passport doesnt say Gavid steacy, I dont agree with the sitiuation but do agree with the way it has been handled and the fact he stood in front of us and explained why and how we are at this point shows he is generally thinking of his staff. I enjoy my job, dont spend all my time moaning about it and if this furlough helps me stay with Newsquest and work with the colleagues I have then its fine by me. Lets see some positivity please
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