By Marietta Cauchi Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- Journalists at the Financial Times have voted to escalate their action over pay following a breakdown in talks with management, the National Union of Journalists said Wednesday. The vote came as journalists staged a two-hour walkout Tuesday for a meeting on the pay hike proposed by the FT, which is owned by Pearson PLC (PSO). The pay rise proposed comprises a raise of 2%-2.5% for all editorial staff with an extra 1% bonus based on merit. The NUJ claims that the package is unfair because it doesn't apply across the board, as suggested by Marjorie Scardino, Pearson's chief executive, with 1% only payable on merit and therefore discretionary. "Ms. Scardino described the pay offer as '3.5%,'" the NUJ said. "But the deal will give most staff 2% with a third of the money set aside for this year's increase to be used as merit pay or for staff retention at the managing editor's discretion," it added. At Tuesday's meeting, the 250 FT journalists who are NUJ members voted to walk out again next Thursday for a three-hour mandatory meeting unless management would submit to binding arbitration by Advisory, Conciliation and Arbitration Service, or ACAS, a government body that aims to settle employment disputes. The NUJ said that it was particularly unfair when the FT's figures were the best they had ever been. "With FT's latest figures showing a 27% profit increase at the group and the highest circulation in the paper's history, there is no justification for this unfair pay award," said Barry Fitzpatrick, NUJ deputy general secretary. Reporting full-year earnings last month, Pearson said it expects to increase sales and profits in 2012 despite a tough market, as investment in its digital businesses helped drive full-year adjusted earnings above guidance, although net profit fell to GBP957 million from GBP1.30 billion a year earlier. Sales for the Financial Times Group for 2011 rose 7% to GBP427 million, while adjusted operating profit was up to GBP76 million from GBP60 million, the best performance of any Pearson division, the FT said at the time. A representative for the FT wasn't immediately available to comment. - By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com
