UTV's broker, Goodbody, says the pensions issue does not diminish the company's appeal for investors, even when a recommencement of company contributions to the pension scheme is priced in. More difficult to quantify, however, is the effect a disgruntled workforce can have on a company's profits.
The unions at UTV are gearing up for a bit of a scrap with management, spurred on by news that the company's pension fund has slipped into deficit after years of healthy surplus.
The shortfall - about £700,000 (€1.1 million) - is not enormous in the context of current market volatility, but UTV staff are alarmed that it has appeared while their employer took a break from pensions contributions and, separately, set forth on a €70 million acquisition trail in the Republic.
Staff appear to be particularly incensed at suggestions that the deficit could be fixed if they considered raising their retirement age or reducing the accrual rate on their pensions. Senior executives appear to be facing no such austerity.
The disquiet has been magnified by what union representatives describe as "a climate of fear and uncertainty" at UTV. This follows the dissolution of a profit-sharing scheme and redundancies over recent years. Staff are also concerned about the company's potential to be swallowed up by a bigger UK player over the next few years, as new legislation makes such a development more likely.
The unions - BECTU and the NUJ - are facing a difficult task if they hope to engage in negotiations with UTV management, who do not recognise their representative status.
BECTU, the larger of the two, recently wrote to management seeking voluntary change to the status quo, but reserves the right to pursue the issue on a legal front if this is unsuccessful. Union meetings, scheduled for Monday, are likely to strengthen their resolve.
