'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 Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
- 2 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 3 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Edgar Froese dead: Tangerine Dream founder dies aged 70
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Syrian refugee child beaten by Istanbul Burger King manager for eating customer’s leftover food
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...