Independent twitchy over possible retrenchments

An article carried in Tuesday's edition of INMSA title Business Report quoted Howard saying that management was looking at "cost efficiencies" but almost ruled out any retrenchments by saying that there were no plans that would require engagement with the unions.

Howard was quoted saying: "I'm just trying to get my bottom line increasing at a certain rate; as a management team we are looking at cost efficiencies across the operational areas, this does not mean we have to cut people ... If we get to a point where we have to look at retrenchment then we will engage with the appropriate people."

Tuwani Gumani, secretary general of the Media Workers Association of SA, however, rejected that statement and said that Howard and INMSA management should tell staff exactly what the plans were.

Association declares dispute

The association declared a dispute this week with INMSA regarding the retrenchment of roundsmen - the people who distribute the newspapers - in the Johannesburg area.

"There is no secret that R100m has to be found from somewhere and the soft targets when cutting costs are people. We need Howard to follow the Labour Relations Act and engage with the staff in the workplace," he said.

According to the Business Report article the R100m in savings that were to come from INMSA were attributed to foreign media reports that were quoting Vincent Crowley, the CEO of the Irish parent.

Trading conditions expected to be worse than expected

Independent News & Media has to issue an interim management statement later this week and was expected to reveal that trading conditions were worse than expected.

The group also has to repay €400m (about R4.2 billion) of its €426.8m debt by 2014.

A separate editorial in Business Report on Tuesday lamented: "It may be that there is no future for the print media.
"However, it should be noted that that INMSA never made a loss and indeed has generated billions of rand of profits for its foreign shareholders.

"It's just that we are getting a little twitchy about rumours that the foreign shareholder wants to gouge out 30% of its editorial costs.

"Local management has emphatically denied that there is a 30% gauging exercise in the pipeline, which is comforting for now."

INMSA management have not responded to queries.