Talks extended as Fairfax shares slump
Journalists’ union the Media, Entertainment & Arts Alliance says that Fairfax has extended its consultations on plans to outsource some regional production jobs to New Zealand.
The move comes after staff went on a 36 hour strike after the plans were revealed.
Tonight’s MEAA statement:
Fairfax Regional Media has extended the consultation period on the offshoring of Newcastle Herald and Illawarra Mercury jobs until close of business Tuesday June 12.
The decision followed discussions in Sydney today where the Media Alliance presented Fairfax with an alternative proposal which sees sub editing and production jobs remain in-house as part of a multi-platform virtual sub hub.
Fairfax Regional management today accepted the Media Alliance’s proposal but stated it could not be fully considered without a thorough evaluation and costing, which they have said they will now undertake.
Management did note the proposal was well prepared and deserved a thorough evaluation. Discussions will resume between Fairfax Regional Media and the Media Alliance on Tuesday June 12.
The Media Alliance’s sub-hub proposal would enable skilled subeditors to remain local and embedded in the community, while delivering Fairfax the cost savings originally intended by offshoring the positions to New Zealand.
The sub hub would be responsible for producing newspaper content across multiple mastheads, be indifferent to platforms and provide support to all forms of content.
A sub hub would involve a reduction in the number of journalists previously seen as necessary in stand – alone newsroom structures and would result in a reduction of relevant staff by about one-third. This is true whether the sub hub operates in New Zealand or in Newcastle/Wollongong and is approximately 40 staff in place of the existing 60-odd staff.
The numbers of sub editors should match the number of journalists seen as necessary to perform the role but given the experience and known skills of existing staff, it should be possible to operate in Newcastle/Wollongong with fewer staff numbers than New Zealand.
A geographic base maintained in Newcastle and Wollongong will strengthen the community connection of the papers with their regions and so financially strengthen the company. This is because commitment and engagement with the communities of the Hunter and the Illawarra depends on journalists embedded in and understanding those communities.
The proposal is considerably more economically thrifty when compared to Fairfax Regional Media’s offshoring proposal, as it requires less staff and removes the additional cost of redeploying the positions.
It is for these reasons, the Media Alliance believes the in-sourcing model of a multi-platform sub hub linked virtually in Newcastle and Wollongong will be better financially, better for the quality of journalism and better for our communities.
Meanwhile, Fairfax Media shares saw a dramatic slump on the ASX today to a new low of 56c before closing at 58c. Just a month ago shares were at 71c, while this time a year ago they were more than a dollar. Market speculation for the sudden drop included a coming profit downgrade or a major investor selling up.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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Corbett must surely pay the MEAA for this sound consultancy advice.
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Gina could buy the whole of Fairfax with a few truck loads of Ore right now. The Board will get a shakeup come AGM time,
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