BECTU press release on BBC Resources Ltd

BECTU issued a public warning of possible industrial action at the BBC over plans to create a new limited company to run a large proportion of the Corporation's Resource Directorate.

News release

BBC Resources Ltd: Staff threaten industrial action over the breakup of the BBC

The BBC unions are to undertake a massive consultation of BBC staff to establish their views on the decision to turn most of the Resources Directorate into a wholly-owned subsidiary. If there is overwhelming hostility to the proposal, but it is given the go-ahead by government, then the unions will ballot for BBC-wide industrial action.

The unions met the BBC this morning to receive information about yesterday's Board of Governors decision and will meet Resources chief executive Rod Lynch and the management team on Monday. They are demanding from the BBC cast-iron guarantees on job security, earning power and the retention of national collective bargaining. To date they have been given no such assurances.

The BBC plans to transfer two-thirds of Resources staff and two thirds of the business into Resources Ltd. The part transferring out will be all Resources in Scotland, Wales and Northern Ireland plus other major London-based areas including Outside Broadcast, post-production and TV studios. The one-third destined to remain within the BBC includes News Resources and Radio Resources.

BECTU broadcasting supervisory official Gerry Morrissey gave the union's initial reaction to the plan after this morning's meeting. "The proposal is ill-conceived and inconsistent. The BBC intends to increase external income by £10-million a year for the next five years. But it is ignoring the fact that Resources has a limited asset base and will still be saddled with the BBC's overheads. Major parts of Resources, such as post-production and Outside Broadcast, are losing money. If Resources continues to lose money, who will fill the gap? We suspect it will be filled by more redundancies and closures of departments.

"Today's announcement shows that John Birt's obsession with news is continuing unabated, while he is leaving the rest of BBC television to decline. Ten years ago there was no place in the BBC for caterers, cleaners and security guards as management declared them periferal. Now there's no place at the BBC for cameramen, sound recordists, engineers or any others who make television programmes unless they're making news programmes. It proves that the unions have been right in their statements over the last several years that John Birt is intent on creating a publisher/broadcaster. This is the beginning of the break-up of the BBC."

Gerry Morrissey added that the changes demanded to the original proposal - originally news and radio were to transfer as well - "shows that the powers that be were not persuaded by the original proposal and do not trust the limited company to provide news programmes of the quality demanded."

BECTU welcomed the statement of Chris Smith, Secretary of State for Culture, Media and Sport, that he wished to see representatives of the unions before reaching a conclusion on whether to approve the BBC's plan. The unions will conduct a massive consultation of members across the corporation to establish their views before formally making representations to him.

Gerry Morrissey added: "If our consultation reveals what we expect - that they overwhelmingly oppose the Resources proposal - but it is given the go-ahead then the unions will start a campaign for industrial action and we would see that campaign affecting everyone in the BBC. It would be campaign in defence of public service broadcasting. However, Chris Smith is a secretary of state committed to public service broadcasting and we believe he will take seriously the views of the union and its members."

Finally, questions are being asked about Rod Lynch's own employment under the proposal. The BBC has refused to confirm whether the architect of Resources Ltd will be transferring himself or stay safely behind. Gerry Morrissey commented: "What sort of a commitment to his own proposal would it be if it transpired that he was to save his own job by remaining with the BBC, but ready to jump across and buy his share options if by some miracle the company was a success?"

ENDS

Issued by BECTU Press Office. Further information and interviews: Gerry Morrissey on 0171 437 8506.

Issued 20 February 1998