Staff at the Independent titles have been told their generous redundancy terms (four weeks of pay for every year's service) would have to be cut – or the deal to sell the paper will fall through.
The papers' editor-in-chief and managing director, Simon Kelner, has agreed to address a National Union of Journalists chapel meeting on Thursday to explain why members must agree to halve their redundancy package. I understand Kelner has declined to participate in a question and answer session.
In the past, publisher Independent News & Media has given staff four weeks of pay for every year's service. This included the cuts announced in late 2008. But those terms were never guaranteed in writing, meaning their legal status is unclear.
However, the existing packages appear to be a stumbling block to London Evening Standard-owner Alexander Lebedev buying the paper, management have told staff.
"We have had a gun held to our heads – if we don't agree to reduce our terms from four weeks to two weeks per year of service the deal with Lebedev is off," one journalist said.
The paper's NUJ chapel met last week and passed a motion asking INM to agree to three weeks' pay for every year's service. The resolution also asked that the agreement be put in writing and also for a guarantee of no compulsory redundancies in the first year of Lebedev's ownership.
Redundancy terms at national newspapers vary.
When Lebedev agreed to buy the Standard last year, it was feared that he would pay only statutory redundancy terms of one week per year's service with pay capped at £12,000, but after an intervention by the Daily Mail & General Trust chairman, Lord Rothermere, this was boosted to a cap of £70,000.
At the Independent and Independent on Sunday, executives have approached staff members to emphasise the importance of reducing the redundancy terms, claiming that the titles' generous redundancy terms are a "deal-breaker". They have even gone as far as saying that the paper could close next month if the Lebedev deal falls through and have urged staff to accept the reduced terms.
"The screws are really being put on people," one staff member said.
Previous negotiating points with the Independent sale have included the size of the pension deficit and the 12-year print contract with Trinity Mirror.
Estimates for losses at the Independent titles before they moved to the Daily Mail and General Trust headquarters in Derry Street were in the £10-£12m range, although sharing functions with the Mail papers is thought to have reduced this.
The NUJ and INM declined to comment.
