Restructuring 'puts Golden Pages on the path to profit'
Published 01/09/2016 | 02:30
The publisher of the Golden Pages has told the Labour Court that it has had to undergo a restructuring due to ongoing losses.
Arising from a recommendation from the Labour Court, FCR Media is to provide enhanced redundancy terms to 7pc of the firm's workforce being made redundant here.
This follows the Labour Court recommending that FCR Media give the nine employees losing their jobs an additional ex gratia payment of €800 per year of service instead of the additional ex gratia payment of €600 per year of service originally offered by the firm.
A spokesman for FCR Media said yesterday that the firm will abide by the Labour Court recommendation.
At the Labour Court, FCR Media told the court that the company had to affect a restructuring due to ongoing losses and that the company has posted losses for four of the last six years.
The firm also told the court that it has liabilities preventing them from obtaining additional finance.
The terms of the redundancy were in dispute, with Siptu representing the workers. The case went before the Labour Court after agreement could not be reached locally.
Siptu told the Labour Court that previous redundancy programmes offered enhanced redundancy payments and that the company will make savings each year as a result of these job cuts.
The FCR Media spokesman said that 11 workers were originally were affected but two have since been redeployed within the company.
After the redundancies take place, FCR Media will employ 119 here.
Asked why the restructuring is necessary, the spokesman said: "Due to the change in our business model, restructuring is just one of the actions that the company has made to right size the business for the future."
He added: "We believe that by executing on our business model we are on the right path to profitability.
He said: "In 2015, the company made a paper profit primarily due to pension fund reorganisation.
He added: "The company forecasts a paper profit in 2016 primarily due to further pension fund reorganisation.
He said: "However, the company's underlying business is heading toward break-even, as it continues to benefit from its adjusted cost base and new business model."