'Telegraph' pensions frozen as profits fall
In past years, the group has made what it terms "ex-gratia" payments to pensioners under a plan set up before Conrad Black, the Canadian media baron, bought a stake in the titles in 1986. The payments had been aimed at keeping pension cheques in line with inflation.
The original pension plan had been non-contributable for employees, and subsequent payments topped up by the company were seen as a moral rather than a legal requirement.
In a letter addressed to pensioners, and sent just two days before Christmas, Jeremy Deedes, the managing director, wrote: "The company has had a reasonable but not particularly good year. Indeed, its trading profit has fallen short of the 1996 budget because of the intensive competition."
The letter was seen by pensioners last night as a concession from the Telegraph that competition from the Times, Rupert Murdoch's flagship quality daily, had taken its toll. Mr Murdoch's News International has continued a selective price war in the quality market, particularly through a cut- rate price for Monday editions and a lower-than-average cover price for the rest of the week.
Mr Deedes also told pensioners that an ex-gratia payment for 1996 would have had "an adverse impact on the share price of the parent company on overseas stock exchanges, and was judged an unfair taxation of those shareholders who have already paid the heavy cost of privatising the Telegraph".
The letter was seen by insiders as a reference to the buyout of minority shareholders last year by Mr Black. Mr Deedes told pensioners that the company would look again at the matter of pension increases in 1997.
- 1 2015 General Election: Green party will not appear in TV debate alongside Ukip – says BBC
- 3 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
iJobs Money & Business
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...
£45,000 - £65,000: Saxton Leigh: Our client is a well-known APAC Corporate and...
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...