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Publisher rules out ‘widespread restructure’ after voluntary redundancies

chris-morleyPublishing group Reach has confirmed that a voluntary redundancy scheme it launched last week will not form part of a wider restructure.

The National Union of Journalists has welcomed the pledge by Reach chief executive Jim Mullen following the announcement of the company’s half-year results this morning, but has also urged the company to “level with staff about what it is trying to achieve”.

The publisher announced planned cutbacks to its editorial operation last week, opening a VR scheme up to editorial staff.

The move comes amid a pay dispute with the NUJ, whose members at the group are currently voting on potential strike action after turning down a 3pc salary increase.

NUJ Reach national coordinator Chris Morley, pictured, said: “We are pleased that, in answer to a question from a City analyst this morning about the reasons for the editorial voluntary redundancy scheme, the chief executive said it was not part of a widespread restructure of the business.

“Instead, he said there were no targets or numbers being sought and it had come about as a result of requests from a number of parties internally – including those reaching retirement age.

“It is surprising that the company is devoting so much energy to something that clearly is not central to its business plans – especially given the level of anxiety this sort of thing creates among employees, particularly those starting out in their journalistic careers.

“We call on the company to come clean about the reasons for this scheme and to level with staff about what it is trying to achieve.”

In a last-ditch bid to avert the strike ballot, Reach said it had last week put forward a proposal, rejected by the NUJ, to enhance redundancy terms that would have benefited some staff to the tune of “several thousands of pounds”.

The offer by Reach would have seen journalists who previously worked for the Local World group and national dailies the Express and the Star given the same redundancy entitlement as other Reach staff.

With the voluntary redundancy scheme now open, the NUJ may come under pressure from members in those staff cohorts to take the deal on offer in order to enhance their own potential redundancy terms.

Staff interested in applying for the scheme have until this Sunday to do so.

Reach declined to respond to the NUJ’s comments when approached by HTFP.