STV boss hints at a U-turn on savage job cuts
THE boss of STV has indicated he could reverse some of the controversial cuts announced last week.
Chief executive Simon Pitts unveiled plans for the broadcaster to axe nearly 60 jobs and shut the loss-making STV2 channel less than a year after launching.
However, in his first media interview since revealing the plans – which sparked an angry backlash and the threat of strike action from staff – he hinted some of the proposals might not go ahead.
The loss of STV News Tonight is now the subject of a letter to the broadcast watchdog Ofcom from Culture Minister Fiona Hyslop, in which she raises concerns about damage to media plurality.
STV presenters including John MacKay, Kelly-Ann Woodward and Raman Bhardwaj were among those who attended a meeting of the National Union of Journalists at the station’s Pacific Quay HQ in Glasgow last Wednesday, the day news of the cuts was announced.
Mr Pitts told staff of the plans just months after he joined STV and was handed a ‘golden hello’ package worth £850,000. Speaking to The Sunday Times, he indicated some of the job cuts could be reconsidered. He said: ‘I’d be surprised if the plan is exactly the same in six weeks’ time when we’ve had our formal discussions with our teams.
‘We will think hard about what they are saying, and if that involves making changes to improve the overall plan then we’ll consider that. I’m not saying it is set in stone to the final T.’
Staff at STV are set to vote on strike action over the restructuring plans later this week.
The three-year plan also includes investing £15million to expand STV’s production business and its digital services, particularly the online STV Player service.
Asked about his ‘golden hello’ package, which comprised a cash payment of £187,000 with deferred shares valued at £666,000 to be drip-fed to him until 2021, he said: ‘I’m not saying I’m not well paid, but that’s a matter for the board.
‘We’ve had to make some difficult decisions at STV but we’re doing it to keep pace with our competitors. We’re proud of STV news but we need to invest in new technology and new skills, as well as operate more cost-effectively.’
Staff at STV have suggested the broadcaster may be snapped up by ITV and fear Crystal Amber, an investor with 18 per cent of the company’s shares, has built up its stake to push for a sale.
Richard Bernstein, chief executive of Crystal Amber, told The Sunday Times that Mr Pitts ‘is impressive and has a good growth plan for this business’. He added: ‘We plan to increase our stake.’
Referring to speculation about an ITV takeover, he said: ‘People have been talking about ITV bidding for STV for 20 years and one day it’ll probably happen. But Pitts has come in to deliver badly needed growth.’
Miss Hyslop said in her letter to Ofcom: ‘I wish to note regret at the loss, in STV News Tonight, of a distinctive aspect of news provision in Scotland, one which diminishes the range of voices and perspectives available to audiences.
‘The Scottish Government supports Ofcom’s view that plurality matters.’
Referring to the news that STV2 is to close, and the local TV licences on which it is based are to transfer to That’s Media Group Ltd, she said: ‘I would welcome confirmation as to whether the prior consent of Ofcom was obtained in advance of the announcement of the planned transfer of the STV2 licences.’
Miss Hyslop added: ‘Secondly, I assume that the commercial terms agreed with That’s Media Group Ltd oblige them to fulfil the commitments in all five local digital television programme service licences in full.’