RTE - the end is nigh - high wages come home to roost

darkman2

RTE on the brink of going bankrupt

Broadcaster is losing €1m a week

Sunday May 31 2009

RTE is losing €1m a week and will not be able to pay staff by October unless a programme of salary cuts and redundancies is implemented in the coming weeks.
The crisis comes amid growing anger among staff at the level of pay and bonuses paid to the director-general and senior management over the past number of years.

The bankruptcy warning has come from management at the State broadcaster and the director-general Cathal Goan has cautioned that up to 300 jobs are now under threat.

The cash-strapped station is facing a "worst case scenario" of a budget loss of up to €100m -- far more than the current estimate of €68m.

The news comes as staff at the national broadcaster continue to ballot this week on whether or not to accept proposed pay cuts of up to 12.5 per cent. A well-placed source at RTE has described the station as "sitting on a knife-edge", as the proposal is about to be put to a staff vote.

"This is make or break for RTE. There will be no other offers put on the table. Staff have been told that management is drawing up a list of people who they are going to make redundant, if necessary, to save money. The entire organisation is sitting on a knife-edge now."

Speaking about the prospect that RTE could run out of money by October because of high costs and a collapse in advertising revenue, a spokesperson for the station said: "We need to claw back €68m. It poses a significant cash crisis for RTE. Otherwise the station will be in serious financial difficulty."

Asked about the warning that several hundred jobs are now under serious threat at the station, the spokesperson continued: "There has been an ongoing negotiation process over the last month and if that fails Mr Goan has made it clear to staff that we will have to look at alternatives. And there aren't that many alternatives available."

Meanwhile, tension within the organisation is said to have reached fever pitch. Last week a number of staff placed 'vote no' posters around the Donnybrook complex only to have them ripped down shortly afterwards.

There is also growing resentment among workers over the level of executive pay.

In 2007 Cathal Goan earned €441,000, more than US President Barack Obama. In the same year Mr Goan's basic salary was €283,000, his performance-related bonus was €108,000, his pension supplement was €23,000 and his other benefits amounted to €27,000. His salary was up from €360,000 on the previous year.

In the same year, managing directors in RTE earned between €150,000 and €200,000. They also received a bonus of €20,000, a 'performance-related uplift' of €5,200 and another €30,000 for simply being a member of the executive board.

The figures are the last official earnings to have been released by the state broadcaster. Management have said they have since taken pay cuts to their bonuses but the publication of the 2008 Annual Report, currently due out, has been delayed.

All members on the executive board also receive €12,000 a year for driving their cars to work. The 'car allowance' is given to managers who simply park in the station car park at Donnybrook.

RTE are looking for a five per cent reduction on the first €50,000 in earnings, seven and a half per cent on the next €50,000, 10 per cent on those earning between €100,000 and €150,000 and 12.5 per cent between €150,000 and €250,000.

- NIAMH HORAN Entertainment News Reporter EXCLUSIVE

Sunday Independent

This was coming for a long time. If the staff reject these pay cuts it is certain RTE will not exist this Autumn. This is near a time when Ryan Tubirdy rejected his paycut initially and the likes of Marian Finnucan (who is on holiday most of the time it seems) and Joe Duffy command wages way outside of what I deem acceptable for what they do in this small country. They question the wages of politicians!? It's them that need the arse kick more then anyone.

TBH I would gladly see the organisation go bankrupt.

CHD

Nah nah nah nah.....

cherryghost

cut the late late show. its not like people watch it :pac:

Dennis the Stone

If Gerry Ryan switched from Doughnuts to Chocolate Digestives the day could be saved.

bobmalooka

If only they tought of Play Tv before Tv3:p

amacachi

Good old unions, vote no, don't let the big bad company push you around with paycuts. Just lose your job instead.

Have to say I personally couldn't give a ****e if RTÉ did go under.

Sharpshooter

They're only on the brink now?
/I am so behind on the AHs news

Tyranax

I hope against hope that RTE see sense, and that pay cuts are enacted. For the station to be losing that much money, given the quality of it's output, is unreal, and unacceptable. I would caution against wishing it gone though. It's our State broadcaster after all, a rather important institution. For sure, lessons need to be learnt here. Productivity needs to improve. Doesn't mean that the place should be burnt to the ground though.

donegalman1

Wonder will we get a refund of our TV license if it does go.

Overheal

donegalman1 wrote: »

Wonder will we get a refund of our TV license if it does go.

More like They will raise the cost of the TV license to make up for their abject incompetence.

If RTÉ goes, does it mean that we will see these again.

https://www.youtube.com/watch?v=dO8EqT9Kg5c

https://www.youtube.com/watch?v=cMa4i9TbDm8

cooker3

0% chance RTE will be let go under.

cooker3

cooker3 wrote: »

0% chance RTE will be let go under.

True, but they may send in some "Seagull Managers" to sort things out.

mikemac

darkman2 wrote: »

This is near a time when Ryan Tubirdy rejected his paycut initially

To be fair, isn't he seperated and he couldn't take a paycut and reduce the maintenance he paid.
A solution was found but I'm not suprised he rejected the paycut.

The Pontiac

darkman2 wrote: »

RTE - the end is nigh - high wages come home to roost.

More like lack of imagination is coming home to roost. Tubridy and Kenny.. enough said.

fredzer

In 2007 Cathal Goan earned €441,000, more than US President Barack Obama. In the same year Mr Goan's basic salary was €283,000, his performance-related bonus was €108,000.

How the f**k is this guy getting a performance bonus if RTE is loosing a million a week... greedy c**t's.

Fratton Fred

Decent shows=decent viewing figures=decent advertising revenue.

Maybe if they got rid of some of the crap presenters who think they are superstars they might be able to run at a profit.

RGDATA!

Fratton Fred wrote: »

Decent shows=decent viewing figures=decent advertising revenue.

Maybe if they got rid of some of the crap presenters who think they are superstars they might be able to run at a profit.

i doubt it has nearly as much to do with viewing figures as the huge drop off in advertising which is affecting all media who depend on it. anyway, decent shows cost €€€

Highsider

I'd say the whole thing is an excuse to get more money for the TV licence. Would'nt be surprised to see it go up by 50 quid or so.

Rented Mule

So what if RTE goes under

....we'll still have RTE2.

Elessar

Personally I would love to see RTE go under. Absolute garbage home made programmes (seriously, celebrity banisteoir?! There aren't enough culchies on the planet to justify that sh*te), overpaid personality-less presenters and a culture where everyone knows everyone, because they're all family or friend related in some way, and only look after their own.

Let it crumble tbh.

My name is URL

How can you say you'd be glad for them to go under..? One of Ireland's best and oldest commercial assets, typical fcuking bellyaching by those with nothing better to do

Sure they have poor content, **** presenters etc

But improving and adapting to the modern market would be better than going under imo

dr.bollocko

Overheal wrote: »

More like They will raise the cost of the TV license to make up for their abject incompetence.

They might do, but then they will be stuck with a load of people refusing to pay for it.

fredzer wrote: »

In 2007 Cathal Goan earned €441,000, more than US President Barack Obama. In the same year Mr Goan's basic salary was €283,000, his performance-related bonus was €108,000.

How the f**k is this guy getting a performance bonus if RTE is loosing a million a week... greedy c**t's.

I don't even know who that guy is and he makes near on half a mill a year.

Highsider wrote: »

I'd say the whole thing is an excuse to get more money for the TV licence. Would'nt be surprised to see it go up by 50 quid or so.

It can't go up anymore. The people won't wear it again. It's already a hefty sum for poor service. It's already too much and undeserved.

My name is URL wrote: »

How can you say you'd be glad for them to go under..? One of Ireland's best and oldest commercial assets, typical fcuking bellyaching by those with nothing better to do

Sure they have poor content, **** presenters etc

But improving and adapting to the modern market would be better than going under imo

Yes. Improving and adapting to the modern market might be beneficial. However since they have shown no sign of doing that then it's time to cull. Let them sink or swim on their own merits. The last thing the tax payer needs is to fund more shoite from the national broadcaster.

chrism2007

who is this Cathal fella and why am i paying a TV license for the clown?

if RTE goes down does the TV license go aswell?

the_dark_side

and Pat Kenny says he has retired because of personal reasons (would like to spend more time with his wife ) LOL... Me thinks our Pat could spot the impending tsunmai and wanted to slip out the back door with his retirement lump sum incase he would be told in months to come... 'sorry Pat, no golden handshake, we're bankrupt'

anyone agree??

salonfire

What purpose does a state broadcaster actually serve?...We read how we can't allow the state broadcaster fail,etc

Question is why not??

Saruman

chrism2007 wrote: »

who is this Cathal fella and why am i paying a TV license for the clown?

if RTE goes down does the TV license go aswell?

A quick google finds: http://www.rte.ie/about/goanc.html

Looks like he is in charge so its his mess!

Dyr

O lawdy me first reynards goes into liquidation and now RTE is under threat, its like twilight of the ****ehawks.

I really hope RTE goes under, we have no need for a state owned broadcaster

CatFromHue

something will have to be done.
there is still a fair few people in the country who just get the basic 4 channels, rte 1, rte 2, tv3 and tg4.

Berty

The consumer will always be made to pay for their mistakes.

They need to attract a bigger audience which will mean advertisers will buy more ad space which will give them bigger revenues.

They did this in the 90's but instead of modernising the station they gave themselves higher salaries.

The days for turning a blind eye to greed are long gone. We now demand value and if you cannot provide value then good riddance.

Venom

Poor RTE boo hoo. Maybe if they had of run the station properly instead of like an overpaid old boys club they wouldnt be in this mess. But they didnt so **** em