INM seeks significant pay cut for printers
INDEPENDENT NEWS and Media (INM) is understood to be seeking to introduce significant pay cuts – possibly up to 20 per cent – for printers at its operation at Citywest in Dublin.
Informed sources said management believed that if the printing operation was to continue on a stand-alone basis, costs would have brought down to a sustainable level.
Senior management also told staff yesterday it wanted to see greater integration of editorial operations between the Irish Independent and the Evening Herald. There is also to be greater integration between print and online operations.
Staff were also told that there had been some indicative bids for the company’s operations in South Africa.
Further redundancies at the company have been expected although it is understood no detail was provided at the meeting yesterday.
Last April INM launched a review of all costs and operations as part of a restructuring plan to be presented to its bankers.
Part of the restructuring is expected to involve the sale of its South African operations. Some sources suggested the company hoped this would raise more than €200 million.
The company is seeking to refinance debts of more than €400 million before they mature next summer. The company is also facing significant deficits in its pension scheme.
INM made a loss of €152.3 million in the first six months of this year due to hefty impairment charges on its assets and other exceptional costs.
The company reduced its operating costs by €3.3 million in the first six months. Measures included the closure of its head office in Citywest and an office in London, voluntary redundancies at the Sunday World and the ending of a day shift at its Belfast printing plant.
The role of chief operating officer was not “back-filled” after Vincent Crowley was promoted from that role to chief executive following the resignation of Gavin O’Reilly.