Fairfax has rejected a journalists' union proposal to 'in-source' 40 editorial production jobs rather than sending 66 staff offshore, despite the public and industry backlash that led to a 36-hour strike.
Talks between Fairfax and the Media, Entertainment and Arts Alliance (MEAA) began on 29 May, with the MEAA suggesting an in-house, multi-platform 'sub hub'. Hub staff would have worked across multiple mastheads and platforms, providing support to all forms of content.
The hub would have had approximately 40 staff in place of the current 66, but the talks have come to nought, with Fairfax to relocate page design, page layout and copy sub-editing roles at nine titles to Fairfax Editorial Services in New Zealand. Fairfax has stated "a small number of editorial production staff will be retained" at the affected titles.
The changes affect 66 staff at community mastheads Illawarra Mercury, Newcastle Herald, Lake Times, Kiama Independent, Newcastle Star, Myall Coast Nota, Port Stephens Examiner and Lakes Mail.
Fairfax journalists from The Age, The Australian Financial Review, The Sydney Morning Herald, The Sun-Herald, The Illawarra Mercury and The Newcastle Herald went on strike for 36 hours on 30 May to protest the job cuts.
The MEAA has slammed the decision as "illogical ... near-sighted and wrong."
MEAA acting federal secretary Paul Murphy said: “Fairfax management have shown they lack the vision needed to reposition the company in a multi-platform world, a vision their staff have demonstrated in spades over the past fortnight and in the alternative proposal they put forward.
“Our sub-hub proposal would enable skilled sub-editors to remain embedded within the community while delivering Fairfax the very cost savings it seeks by offshoring. That isn’t 'customer centricity'… it’s customer contempt. The company seems to think it can rip the heart out of these [community] papers without consequences.”
Fairfax Media chief executive officer Greg Hywood has dismissed these concerns, stating: “Since we announced the proposal there has been uninformed speculation that this move will somehow undermine the quality of the Newcastle Herald and Illawarra Mercury and impact on their commitment to local communities. This is totally incorrect.
“Fairfax operates across Australia and New Zealand and we will use our resources in the most efficient way possible and in the best interests of our readers and advertisers. All of our New Zealand publications are produced by Fairfax Editorial Services and all remain individually connected to their own local and regional markets.”
Fairfax Editorial Services, owned by Fairfax Media, has been in operation for two years employing 170 staff. It produces nine daily newspapers, two Sunday newspapers and almost 70 community papers.
“The new arrangements reflect the Fairfax group strategy to move non-core functions to centralised and more efficient operations,” Fairfax Regional Media chief executive and publisher Allan Browne said. “This will enable our newsrooms to focus more strongly on creating content and delivering it across platforms, whether it is in print, web, mobile or in other media.
“Given the pace and nature of change in the media, we must be prepared to do things differently. In Fairfax Editorial Services, we have a ready solution. I am confident readers will be unaffected by the changes. As we reposition our business we will be far better placed to continue to serve our communities in new and exciting ways.”
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