Journalists may take industrial action after a regional publisher warned it would have to make further cuts to improve a pay offer.

The National Union of Journalists is consulting with members at Reach plc after criticising a proposed salary increase for editorial staff at the group.

Reach has proposed a 4pc increase for NUJ members earning less than £60,000 per year, while those earning more than that will receive an increase of £1,000.

In a letter from the company to the union, which has been seen by HTFP, Reach said it would be unable to offer an across-the-board increase without funding it from “painful editorial savings elsewhere.”

The company also cited “online traffic and yields becoming even tougher this year” as among the reasons for being unable to improve the offer.

Reach’s position has prompted the NUJ to announce a consultation of all members to ultimately determine whether the union should hold a formal vote on industrial action.

In an email sent on Wednesday to Reach journalists, which has also been seen by HTFP, NUJ newspapers organiser Laura Davison wrote: “NUJ reps from across the business met this lunchtime to discuss the company’s updated position on pay for 2023. The company position received yesterday afternoon via email is set out below.

“At the meeting reps were collectively clear that a 4pc offer is not enough and that the company’s new proposals will not address the anger of members affected by the 60k cap.

“Reps continue to feel the offer as it stands is divisive. It was therefore the unanimous view of the group chapel that the updated offer is unacceptable.

“In light of this it was agreed at the meeting that reps will now take the next week to ten days to consult with members via chapel meetings about our collective next steps; including the option of running a consultative email ballot of all members to determine whether the union should hold a formal industrial action ballot on pay for 2023. Reps agreed to meet again to review feedback from members next Friday 26 May.”

Laura, pictured, shared with members the letter she had received from Reach head of employee relations Andy Cook explaining the company’s position.

In the letter, he wrote: “We have all had to acknowledge the incredibly challenging backdrop to this year’s pay review driven by the steep rise in costs and the company’s drop in income.

“The focus on cost reduction and control has led to an essential programme to reduce operating costs by 5-6pc and that in turn has impacted the number of roles we are able to retain, meaning some colleagues have been in the unfortunate position of leaving through redundancy.

“We do appreciate the pressures on colleagues as a result of the dramatic increase to the cost of living and the impact that continues to have.

“The level of the pay award for 2023 was always going to be very difficult given the incredibly tight constraints on affordability and our priority has to be those in the organisation who are not on the highest salaries.

“We have spent a huge amount of time looking at options, including those put forward by yourselves, to improve this pay offer to show our employees how much their work has been valued over the past year.

“But with online traffic and yields becoming even tougher this year – and no improvement in market conditions in sight – we have not been unable to increase the offer beyond what is given here.

“We have tried to meet your request of ensuring all employees receive something to help face the cost of living challenges.

“Unfortunately we are unable to lift the across-the-board figure without funding it from painful editorial savings elsewhere – despite this, we have made sure to consider those on higher salaries as well in the proposal.”

The fresh dispute comes after Reach announced plans to cut 192 editorial in March, putting 236 journalists at risk of redundancy in total.

The move prompted the NUJ to pass a vote of no confidence in the group’s executives.

A Reach spokesperson told HTFP: “Discussions are ongoing with the unions and we remain committed to fully engaging in this process.”

The NUJ said it was unable to comment further at present because it is still holding meetings with members on the offer.