State funding of more than €60 million for RTÉ’s voluntary redundancy plan will depend on the broadcaster reaching annual targets to reduce its headcount, it has been told by Government.
The Government has approved €15 million this year to finance the voluntary redundancy programme, which was opened to staff on Wednesday.
But RTÉ will require approval from Government for the payout of €47 million in promised funding from the taxpayer in the coming years to reduce its headcount by the agreed target of 400, The Irish Times has learned.
Minister for Media Patrick O’Donovan and Minister for Public Expenditure Jack Chambers are understood to have made clear to RTÉ management that they would not receive funding for the scheme next year if targets for this year were not met.
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Sources expect that about 100 departures will be required this year.
In a note to staff announcing the opening of the scheme, RTÉ director general Kevin Bakhurst warned staff that this year’s terms might not be replicated in future years.
“While the Department of Public Expenditure NDP Delivery and Reform has given RTÉ approval to operate a VEP [voluntary exit programme] this year, any future VEP, if approved, could be less financially beneficial than the one we are opening today,” Mr Bakhurst said.
Staff must have more than two years’ service to qualify for the scheme. Those with two to five years’ service will be entitled to four weeks’ pay per year of service, those with five to 10 years will qualify for five weeks per year while those with more than 10 years’ service will receive six weeks’ pay per year.
They will not qualify for any further redundancy payments and payouts will be capped at €300,000. Senior management will not be eligible to join the scheme.
[ Approval of RTÉ redundancy offer still leaves station facing bigger challengesOpens in new window ]
The scheme will remain open for four weeks, with applications open until May 23rd, and consists of voluntary severance – available to employees aged under 55 – and voluntary early retirement, which will be available to employees aged 55 and over.
“Applications will be approved only where a robust business case is made, and it is confirmed that the role can be suppressed or that equivalent savings can be made by suppressing an alternative post and/or redeploying an employee into that role,” Mr Bakhurst said.
According to a document outlining the details of the scheme later circulated to staff, applicants who have been approved for the scheme “will be facilitated to leave RTÉ as soon as is practicably possible during 2025”.
The broadcaster will have the discretion to accept or reject any application for the scheme, though there will be “one-step internal appeal to the leadership team”.
Government sources also said the Coalition had stipulated there would be a steering group put in place to oversee all stages of the redundancy programme, including external, independent oversight. All decisions will go through a formal review and approval process including board-level oversight.
Mr Bakhurst is expected to host a briefing for all staff on the scheme today.
The scheme is considered a key part of RTÉ’s plan to cut costs and put itself on an even financial keel, as the broadcaster seeks to recover from the crisis over payments to former host Ryan Tubridy and other spending controversies.
Last year, the Government approved a three-year €725 million funding plan for the station that requires substantial savings – including reducing employee numbers at the broadcaster – in the coming years.
Senior government sources stressed that the approval given by the Department of Public Expenditure and the Department of Media was for this year only, and that future funding for more redundancies would be entirely dependent on achieving targets for headcount reduction this year.
RTÉ, for its part, has been waiting for months for the Government’s approval to proceed with the scheme, a situation described by Mr Bakhurst last year as “incredibly frustrating” and which he said had added several million euro to the broadcaster’s costs.
- This article was amended on April 24th.
