ABC plan for job losses ‘by month end’, says managing director David Anderson

Annual budget gap of $41m means services will be affected and bring redundancies, ABC boss tells staff in email.

The Morrison government confirmed last year in April that the ABC’s $1bn annual funding would be frozen for three years. Picture: AFP

The ABC plans to cut up to 250 jobs across the organisation as part of its long-awaited new five-year blueprint before the end of the month.

Managing director David Anderson has told staff that the public broadcaster will “share the strategy before the end of the month”, nearly three months after delaying its release because of the coronavirus crisis.

The Australian understands that management has told staff that in response to the savings measures there will be up to 250 redundancies across the organisation.

The job cuts will affect news, analysis and investigations as well as entertainment and specialist and regional and local.

“The budget challenge presented to us by the indexation pause remains and we will also need to finalise savings initiatives to meet this challenge,” Mr Anderson said in an email sent to staff on Tuesday afternoon, seen by The Australian.

“The budget gap of $41m per annum means that despite our best efforts some of our services will be affected and, regrettably, there will be redundancies. We will provide more information about these changes when we share the five-year plan.”

Mr Anderson said staff in divisions where it’s likely that more than 10 redundancies will be required will be given “an opportunity to express an interest in redundancy”.

“This is a preliminary process only to help shape those divisions' change plans. Expressing an interest in a redundancy will not automatically mean that an employee will get one, that remains at the discretion of the ABC,” he said.

“This has been an arduous year already for all of us and I’m conscious of how many of you must be feeling right now, given the uncertainty across our industry and the broader economy. The work of all of you throughout the challenges we have faced together this year has been outstanding and your patience and professionalism are, as always, greatly appreciated.”

It is understood that even if the expressions of interest in redundancies are allocated there will be more non-voluntary redundancies.

Mr Anderson’s update to staff comes just two days after The Australian reported that ABC staff are already in consultation with management about the prospect of taking redundancies, with large-scale job cuts at the public broadcaster expected.

ABC staff, including journalists in news and current affairs, have begun talks with management about the prospect of redundancies as they anxiously await the final outcome of the new five-year blueprint.

The Australian has previously reported that up to 200 jobs could go as part of Mr Anderson's five-year plan, which was set to be released at the end of March, but delayed due to COVID-19 to July.

Mr Anderson has been leading an extensive review of ABC’s television, radio and online operations since late last year after its budget was frozen by the Morrison government for three years, with plans to focus beyond the inner cities to suburban and rural communities, and improve its representation of multicultural Australia.

He told The Australian in October that job losses were inevitable as they decided which areas, including ABC Life, could be downsized or cut.

Mr Anderson and chairwoman Ita Buttrose are under growing pressure to ensure the ABC sticks to its charter and represents all Australians, amid criticism of left-wing bias and failure to represent mainstream views.

The majority of ABC’s near 3280 workforce are based in NSW, according to its 2019 annual report. The ABC had 1696 staff in NSW, and 495 in Victoria and 333 in Queensland. The organisation also had 17 staff abroad.

Union meeting Thursday

Australia's biggest media union will hold a meeting with ABC staff on Thursday to discuss several issues, including potential redundancies and returning to work as coronavirus-restrictions are eased by the government.

The Media, Entertainment & Arts Alliance has sent a meeting notice to its members, who work for the public broadcaster in Victoria, to discuss "several issues, including return to work/health and safety issues, casual/contract conversion, and potential redundancies.

MEAA's notice of meeting, which is scheduled for Thursday at 1.30pm, was authorised by Adam Portelli, regional director in Victoria and Tasmania.

Given the major economic fallout from the coronavirus crisis, Communications Minister Paul Fletcher recently asked Mr Anderson for ABC staff to accept a 2 per cent wage freeze for six months as part of cost-savings measures.

It is understood that the ABC has to propose the wage freeze to staff, who then have to vote on the matter. ABC staff accepted the 2 per cent wage increased last December, after rejecting a 1.7 per cent offer in late August.

The Morrison government confirmed last year in April that the ABC’s $1bn annual funding would be frozen for three years.