Johnston Press staff pay for failed management
5 December 2008
Johnston Press has announced a pay freeze, reneging on a number of two- and three-year pay deals that have already been agreed. The NUJ has reacted with anger, accusing the company of making its employees pay for management failure.
Jeremy Dear, NUJ General Secretary, said:
"Our members simply don't accept that they have to pay the price for corporate failure. It's incomprehensible that a company which made operating profits of over £178 million last year can't now afford to keep promises to its staff."
"This is all about the appalling financial mismanagement of Johnston Press. The company prided itself on massive and unsustainable profit margins, taking cash out of the business, whilst putting the company in the red. Now as those debts are being called in, managers can be found floundering, without any strategy except to cutback on already stretched editorial budgets.
"The bad faith being shown by the company is unbelievable. We'll be consulting our members about how they want to respond to the announcement, but anger is already running high so the prospect of action can't be ruled out."