FT Journalists Delay Strike
November 20 2015 - 9:20AM
Dow Jones News
LONDON—Journalists at the Financial Times delayed a potential
strike over the paper's final salary pension scheme and called on
Nikkei Inc. to resolve the row, just days ahead of the Japanese
media group's multibillion-dollar takeover of the British
newspaper.
The National Union of Journalists, a labor union for journalists
in the U.K. and Ireland, said journalists won't strike on the day
of completion of the takeover—earmarked by FT management as
November 30—following concessions made to resolve the dispute.
Still, the NUJ said future strike action remains a
possibility.
In a statement last month, the NUJ said Nikkei and FT management
had failed "to honor promises over maintaining equivalent terms of
employment", citing proposals to take at least £ 4 million ($6.10
million) a year from pension funds to pay for rent and other
costs.
The NUJ says Nikkei wants to use the money to pay for the
running costs of the newspaper's offices at One Southwark Bridge in
central London. The offices weren't included as part of the
agreement struck between educational products specialist Pearson
PLC and Nikkei earlier this year. The $1.32 billion deal will see
Nikkei adding the iconic, salmon-colored FT to its stable of
assets, which includes Nihon Keizai Shimbun, as well as other
publications and broadcasting operations.
Late Thursday, following a meeting of around 100 union
representatives and journalists, Steve Bird, head of the FT's NUJ
chapel, said he welcomed a proposal to restore £ 4 million to the
pension budget for one year, but said a strike remains an option
unless a longer-term solution is found.
"Pensions are long-term benefits and we would look to management
to come forward with a substantive offer that gives staff the
equivalence they were promised at the start of the process," said
Mr. Bird.
"In light of the climate of serious mistrust of FT executives
over broken promises, we will keep the option of industrial action
on the table. We call on Nikkei to join us round the negotiating
table as a way of breaking the logjam."
Earlier on Thursday, the NUJ said nearly 92% of staff who
participated in the ballot voted in favor of a strike. Turnout was
66%.
A spokeswoman for the FT said: "We are disappointed that the NUJ
hasn't agreed to withdraw the threat of industrial action when
there are ongoing consultations and sincere efforts to work toward
a negotiated agreement under way, including a significantly
improved pensions offer to staff."
"While we do not take lightly any discontent amongst our
employees, we must find the right balance between individual
benefits and the sustainable financial future of the FT, for the
benefit of all."
A spokesman for Nikkei said: "Nikkei has not proposed the
pension reforms to the FT union and hasn't participated in
negotiations with them. The issue is being discussed between FT
management and union members, and Nikkei doesn't comment on
it."
Around 260 FT journalists are members of the NUJ. There are 484
journalists contracted on U.K. terms, says the FT's NUJ chapel.
Pearson shares rose 1.5% in midafternoon trading.
News Corp, which owns Dow Jones & Co., publisher of The Wall
Street Journal, competes with Pearson's book publishing,
business-news and education divisions. News Corp also competes with
Nikkei.
Write to Simon Zekaria at simon.zekaria@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 20, 2015 09:05 ET (14:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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