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Fairfax tells journalists it wants to cut out of hours pay and drop automatic salary rises

Fairfax Media has told its journalists that in wants to give no automatic pay rises and wants to reduce the amount it pays those who work after 6pm.

The publisher has also said that new employees should get less generous redundancy terms of three weeks pay per year of service, capped at 52 weeks. This would replace the current terms of four weeks per year of service plus two weeks notice.

The message to the company’s journalists was sent out by Fairfax publishing boss Allen Williams on the two year anniversary of the announcement of the most dramatic cuts in the company’s history.

In June 2012  the company stunned its staff with the announcement of the axing of 1,900 jobs, and the closure of two of its major presses at Chullora and Tullamarine. Fairfax’s press in Chullora in NSW closed a few days ago and now stands empty.

chullora fairfax

Yesterday’s message to staff from Williams, and editorial boss Sean Aylmer, warned them that the company expected further falls in print revenue. Aylmer – who will lead the company’s side of the negotiations – wrote: “Advertising revenue in print is expected to fall. In Australia the decline has been very marked over the past three years, and that’s expected to keep going over the next few years.”

He also warned that there would no longer be automatic pay rises, saying: “We need to engender a high performance culture.

“We need to shift our pay structure to a meritocracy basis, rather than the current lowest common denominator model. The best people should be able to be paid more. We propose to cease automatic pay increases and to implement a merit based system. The size of the pool available for increases will be subject to business conditions.”

Aylmer also warned journalists that they should expect to work more flexible hours, saying: “We now operate in a 24/7 news cycle and our newsrooms need to reflect this. Our audience now demands much more than ever before and we need to become much more customer centric.

“We propose to review the hours, shifts and overtime clauses to better reflect the realities of the digital newsrooms, and the need for flexibility.”

Currently staff receive a 10% pay supplement on hours worked between 6pm and 8.30pm

fairfax chullora

In a meeting with journalists’ union the Media, Entertainment & Arts Alliance, Williams proposed holding weekly bargaining meetings around the proposals.

fairfax chullora

The union has written to members telling them: “Your representatives made it clear that any agreement MUST include a fair pay rise for all editorial staff and our concern that the company’s proposals would have the effect of creating different classes of employees, in effect bringing division to the editorial floor.”

The union will shortly hold a ballot on industrial action.

Fairfax’s note in full:

Dear colleagues,

The Fairfax Media – Metropolitan Journalists Collective Agreement (Metro EA) is coming to the end of its term. Today we began the negotiation of a new agreement. It comes at an important time as we continue to transform our business.

I truly believe that we all want to achieve the same goal – a sustainable Fairfax with a strong core of quality, independent journalism. We are committed to an open and productive negotiation.

Management and union representatives met today to discuss the company proposal and the union log of claims. The company position is set out below by Sean Aylmer, who is leading the company’s negotiating team, which includes Rod Quinn, Melina Cruickshank, Greg Moses and Sean Herger. Please don’t hesitate to contact the team if you have any questions or feedback.

Regards,

Allen Williams
Managing Director – Australian Publishing Media

Company position – as outlined by Sean Aylmer:

Our discussions over the next period are based around a few fundamental principles.

The first is that quality journalism is our raison d’etre. Without it we don’t have a business.

The second is that advertising revenue in print is expected to fall. In Australia the decline has been very marked over the past three years, and that’s expected to keep going over the next few years.

The third is the need to achieve a sustainable newsroom, employing as many professionals as possible to create quality journalism. As part of that we need real transparency between management and staff.

We need flexibility from staff to adapt to changing circumstances. We need understanding from management that change is difficult and the best way to alleviate these difficulties is to communicate.

We need to work together. The MEAA represents its members and we respect that. I would like the MEAA and our staff to respect what we are trying to do to create a sustainable newsroom for as many journalists as possible.

Our proposals:

The first is around wages and rewarding high performers.

We have some of the best journalists in the country. We have a workplace that is changing faster than ever. We need to engender a high performance culture.

We need to shift our pay structure to a meritocracy basis, rather than the current lowest common denominator model. The best people should be able to be paid more.

We propose to cease automatic pay increases and to implement a merit based system. The size of the pool available for increases will be subject to business conditions.

As part of the shift to a merit based system, we propose to cease accelerated progression at grade 2.

The second proposal is around redundancy.

The current redundancy provisions were negotiated many years ago under very different business conditions.

We propose a new clause which will:

1. Retain the existing scale for current permanent employees under the EBA.

2. Introduce a new scale of 3 weeks per year of service capped at 52 weeks for new starters.

3. Introduce a simplified process which does not require a VR program. We would like to work with the union and our staff to come up with a different approach.

Our third proposal is around hours. We now operate in a 24/7 news cycle and our newsrooms need to reflect this. Our audience now demands much more than ever before and we need to become much more customer centric.

We propose to review the hours, shifts and overtime clauses to better reflect the realities of the digital newsrooms, and the need for flexibility.

Specifically we propose to adjust the span of ordinary hours from 7am to 8:30pm.

Proposed Next Steps

In our bargaining meeting today with the MEAA, we proposed we have weekly bargaining meetings which will deal with the following areas, in no particular order:

1. Wages, merit, grade progression, higher duties

2. Redundancy and consultation

3. Hours, rostering, overtime and casuals

4. Scope, exemptions and other issues as they may relate to the employment relationship

5. Women in media claims, superannuation, parental leave, allowances / expenses

We will provide you with further information and keep you updated as the negotiations progress.

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