The National Union of Journalists has welcomed the publication of interim results from Reach plc indicating a “significant” cash balance.
The NUJ, which is currently in dispute with publisher Reach over its members wages, said in a statement:
“The union recognises the success of the company lies with the dedicated journalists and staff yet notes chief executive Jim Mullen’s statement that a significant cash generation has led to a ‘growing dividend’ paid to shareholders. This is against a backdrop of stalled negotiations with the company and a live industrial action ballot of staff, due to its failure to offer a fair pay increase.”
Chris Morley, NUJ Reach national coordinator, said: “While there are undoubtedly headwinds that the media industry is facing in relation to advertising and newsprint costs our members will be reassured by Jim Mullen’s assertion that the company has a strong balance sheet and generates significant amounts of cash.
“But they will be disappointed that this cash is being directed solely at the shareholders with £14m being given away as a half-year dividend – 4.7% up. There is no mention of the hugely tough environment for employees suffering from the cost of living crisis – except that some titles have appointed specialist reporters to report on it.
“Jim Mullen admits it its ‘challenging’ to recruit talent but fails to recognise that chronic poor pay in Reach is making it uncompetitive for new staff – and keeping existing quality journalists. There is an unshakeable argument that Reach must make a better pay offer if it is to avoid a damaging campaign of industrial action.”
Prolific North has contacted Reach for a response.
