UP TO 600 staff working for the Independent News and Media group have been asked to accept a pay freeze or salary reductions of between 2.5 and 10 per cent.
Management told staff yesterday it was seeking their co-operation to deliver cost savings.
Under the proposals staff earning up to €40,000 per year would see their pay frozen.
For those receiving between €40,000 and €50,000 a 2.5 per cent pay cut would apply while a salary reduction of 5 per cent would be put in place for those earning between €50,000 and €100,000. A 10 per cent pay cut would apply for those receiving more than €100,000.
The company has proposed a new share scheme for staff who would be subject to the pay cuts.
It is understood they would be offered shares in Independent News and Media (IN&M) to the value of 2½ times the reduction in salary. The pay proposals would apply to staff at the Irish Independent, Sunday Independent and Evening Herald, as well as regional newspapers owned by the group and in distribution company Newspread.
IN&M directors including chief executive Sir Anthony O'Reilly and chief operating officer Gavin O'Reilly are to take a 10 per cent salary cut and will not receive any bonuses for 2008. Last year directors received bonuses ranging from €475,000 to €750,000.
Sources close to the company said staff had been advised that the pay proposals were a means of substantially reducing the prospect of redundancies. It is understood staff within three years of retirement would not be affected by salary reductions. Staff will be required to reply individually to the proposals by January 9th.
The National Union of Journalists (NUJ) said it would be seeking an urgent meeting with the company for details of the plan. It said the share option plan in return for a pay freeze or salary cuts was unlikely to be welcomed given the current value of the stock.
NUJ Irish secretary Seamus Dooley said the company had also indicated it was pulling out of the national pay deal. The NUJ recognised there had been a downturn in the economy and in particular in advertising. It also noted there were no plans for redundancies.
Meanwhile IN&M said board members Liam Healy and Joseph Davy had advised the company of their decision to retire with effect from December 31st, 2008.
