Supplementary letter from the National
Union of Journalists
NUJ CONCERNS AROUND PROPOSED MERGER OF REUTERS
AND THOMSON
I am writing to you in your capacity as a clerk
to the House of Lords Committee on Communications to bring to
your attention NUJ concerns over the management of a proposed
merger between Reuters and Thomson. I have separately written
a similar letter to members of the committee to bring this matter
to their attention. Some of our concerns focus specifically on
actions by David Schlesinger, Editor-in-Chief at Reuters, who
will be before your committee on Wednesday morning.
This merger is of key importance in the media
sector, since it brings together two of the most significant suppliers
of financial news and information. If approved by the European
Commission and the US Department of Justice, the merger of the
two companies will result in the world's biggest company of its
type and leave just two major suppliers in this field.
Although approval of the merger is still pending,
it has become clear that the companies are pushing ahead with
their plans in the expectation of a positive response from both
competition regulators.
This work is being done in the absence of any
consultation with employee representatives, leading to concerns
amongst journalists working for both companies, The NUJ is formally
recognised by both Reuters and Thomson but to date neither company
has been forthcoming in consulting on how the two separate operations
will be integrated into one.
In communication with the union Reuters has
claimed that any consultation may prejudice the outcome of the
competition authorities' deliberations. However, communications
from David Schlesinger to employees have made it clear that plans
are going ahead without taking on board the concerns of the companies'
employees.
Such an approach would be worrying in any organisation,
but in the media sector it is of particular concern, since journalists
working on these titles will be crucial in maintaining the quality
and accuracy of the resulting company's services. Large parts
of the media sector use material supplied by Reuters and Thomson,
so the accuracy of reporting is a crucial issue.
Competition in this sector does not solely focus
on price. The quality, accuracy and integrity of the journalism
at the heart of these news and information services are also vitally
important. Safeguards must be put in place to protect these standards,
including a commitment to long-term investment in journalism.
However, Reuters management has been unwilling to meet us to discuss
their plans for the merger.
Some of our specific questions that have so
far gone unanswered include:
It has been suggested that this will
be a merger of equals, but given that a huge majority of management
post merger will be from Reuters, is that really the case?
How will the reduction in competition
affect the company's commitment to quality journalism after the
merger?
What impact will the $500 million
savings have on the size of the merged company's journalistic
workforce?
If there are job losses, have the
companies considered how this will affect the quality of its services,
both in terms of the pressures placed on remaining staff as well
the impact on staff morale?
Are there plans to expand areas of
news coverage after the deal is completed?
Why won't Reuters discuss its plans
with the relevant unions?
I am very grateful for you taking the time to
consider these issues and would be very happy to provide you with
further information if you have any questions on this matter.
14 January 2008
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