Financial Times Faces Possible Strike
11 November 2015 - 5:40PM
Dow Jones News
LONDON—Journalists at the Financial Times are set to decided
later this month whether to strike over union fears that the
paper's final salary pension scheme is under threat, just months
after Nikkei Inc. struck a multibillion-dollar deal to acquire the
British business-focused newspaper.
The National Union of Journalists, a trade union for journalists
in the U.K. and Ireland, said Wednesday that ballot papers were
sent last week with a decision due on Nov. 19.
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 ($6.08
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.
The offices weren't included as part of the agreement struck
between Pearson PLC and Nikkei earlier this year. The $1.32 billion
deal will see Nikkei adding the salmon-colored FT to its stable of
assets, which includes Nihon Keizai Shimbun, as well as other
publications and broadcasting operations.
A spokeswoman for the FT said the publication is "hopeful" it
can resolve the row, with ongoing consultation meetings involving
employee representatives and unions. She added that the row
wouldn't threaten the agreement between Pearson and Nikkei, nor
push back completion on the deal. The transaction is expected to
close during the fourth quarter of this year.
Nikkei wasn't immediately available to comment.
Pearson shares rose 0.7% in midafternoon trading.
"Staff are in open revolt," said Steve Bird, head of the FT's
NUJ chapel, in a statement published by the union. "Hundreds of
senior staff will see their pensions cut by up to a half in order
to pay rent on the FT building."
"Whatever financial constraints Nikkei have placed on the FT are
being passed on to the journalists," said Mr. Bird.
He said the company was trying to force through serious changes
to the pension scheme by the end of November.
"Discussions are very much ongoing," said the FT spokeswoman.
About a third of the FT Group's approximate 500 journalists are NUJ
members and about 10% of FT Group's employees are in the pension
scheme.
"We continue to work directly with employees. We are listening
to all comments and will consider each of them. We will take the
time needed to achieve the best possible outcome and to make sure
all our staff have the opportunity to raise any questions directly.
We have a common goal of finding the right balance between
individual benefits and the sustainable financial future of the FT
for all."
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<mailto:simon.zekaria@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 11, 2015 11:25 ET (16:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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