TV Home Forum

ITV turn down chance to buy Scottish / Grampian

(February 2005)

This site closed in March 2021 and is now a read-only archive
SC
scottishtv Founding member
Things just get better over at SMG. Now they don't want to give their staff very much money, it would seem. Trouble could be looming...

The Sunday Herald posted:
Television strike threat over imposed pay deal
By Steven Vass

STAFF at STV and Grampian are on the brink of strike action after voting overwhelmingly to reject the 3% pay increase imposed by SMG management last month.

Union leaders have agreed to one final meeting with the employer’s side early next week to try to reach an agreement, failing which they will move to an industrial ballot.

Paul Holleran, Scottish organiser for the National Union of Journalists, which represents about 70 staff at the Glasgow-based company, said the two sides had been close to a deal before the imposed rise.

“We asked for another week to try to finalise figures, and they said, ‘No, we are putting it in the pay packets next week’,” said Holleran.

Despite warnings from the unions that they would lose a consultative ballot, SMG stuck to its position.

Paul McManus, Scottish organiser for entertainment industry technicians union BECTU, which has 130 members at SMG, said: “People found the management’s imposition of 3% hugely provocative. We don’t understand why they couldn’t at least have offered a 3.5% rise in line with inflation, particularly after the huge bonuses dished out to managers and directors.”

A spokeswoman for SMG said the pay rise was a core 3% but included an additional 1% for individuals affected by “salary anomalies”, demonstrating SMG’s flexibility in the discussions.

She added that it was, “a fair offer and in line with settlements in other areas of the industry”.

The row is badly timed for SMG, which is fighting a larger battle to prevent a Virgin Radio auction after entrepreneur Lord Alli and private equity group 3i began taking their rebuffed £100 million offer to shareholders last week.

Their meeting with ITV, the largest SMG shareholder with more than 16% of the company, is seen as key to any possible revolt against the management, although most observers believe the £100m bid is too low to succeed.

The meeting is due to take place early this week, and contrary to reports in last week’s press, ITV insists it is keeping an open mind until then. The possibility of a move on the whole of SMG either by Alli/3i or even ITV to break up the assets is still not being ruled out.

In 2003, the last full-year available, chief executive Andrew Flanagan’s total pay rose by 18% to £562,000.

27 February 2005
http://www.sundayherald.com/47959
LC
Lewis c
I remember back in 1998 STV journalists did go on strike over a row about pay.News bulletins still went on air. Scottish Action Producer Dennis Mooney read short bulletins during the day and i'm sure it was only a short bulletin instead of Scotland Today at night then a filler programme was used .I remember Dennis explaining to viewers about the strike and why the bulletin was shorter.
MA
mauritius
I think ITV plc are probably waiting to see if a higer bid comes in for Virgin Radio after all it would help pay down SMG's debts before if or when it decides to go for the rest of the group. Clear Channel are reportedly lining up a £30 million bid for the Primesight advertising business if a breakup of SMG happens in the near future.

I think once Virgin Radio goes (it's looking like it will probably happen this year) the rest of group will come into play and will be the end SMG as we probably know it.

However none of what I said may also happen. Very Happy

Newer posts