BBC strike is sign of things to come

BBC News staff began the strike at midnight last night, setting up picket lines and forcing some of its flagship programmes off air.

The Today programme on Radio 4 was replaced by repeats and some of the corporation’s top news presenters, including Fiona Bruce and Huw Edwards, are also expected to take part in the strike. The BBC is updating its news schedule through the day.

“This is a foretaste of what is to come…there will be substantial job losses, the order of which the BBC has never seen.” David Elstein, former Channel 5 Chief Executive

The 48-hour strike is being staged by members of the National Union of Journalists (NUJ) in a dispute over pension change being introduced at the broadcaster, which has a £1.5bn pension deficit and is also facing budget cuts and a licence fee freeze.

No famous faces on the BBC picket line
There was a wet, bedraggled mob out in force as we pulled up alongside the BBC's Television Centre today, writes Channel 4 News Business Correspondent Siobhan Kennedy. Not so much a rally as gaggle, but nonetheless, they made themselves heard. Bearing banners declaring "Pensions robbery" they cheered as cars drove past hooting their support.
There were no famous faces, save for Paul Mason, Newsnight's Economics Editor and an NUJ representative, but no Fiona Bruce, no Huw Edwards. Perhaps it was raining just a little bit too hard.
The BBC had launched an attack on their pensions, staff declared. "If our pensions are under attack, you can bet your bottom dollar yours will be too", said another. "We have to fight on!". Cue cheers.
At issue is that fact that the BBC, like just about every other organisation in the country, has realised it can no longer afford to pay the pensions it promised its staff. So now it needs to negotiate them - downwards. The plan is to terminate the final salary pension scheme (which does pretty much what it says on the tin) and replace them with a "career average" scheme - that will, of course, mean staff ending up getting less. In some cases, a lot less.
One senior journalist for the 6 O'Clock news said his pension would be decreased to the tune of about £40,000. Staff say they know the pension scheme has to change and that they're prepared to work longer hours and to pay more into their scheme from their own back pocket. But for that, they say they expect their pension to at least stay the same as it is now.
What they won't do, they say, is work longer and pay in more to get less. It says the BBC's current offer fails that test and therefore isn't fair. The BBC has a different view. Fresh from being whacked by George Osborne in the spending review, it now has to find 16 per cent savings - or cuts, whichever way you look at it -and an unsustainable pension pot, with a £2 billion hole in it, has to be addressed.

More militancy to come

Former Chief Executive of Channel 5 David Elstein – who began his broadcasting career at the BBC – told Channel 4 News the strikes over pensions were only the beginning of industrial action at the BBC, as it struggled with the licence fee settlement and potential job cuts.

“This is a foretaste of what is to come with the licence fee settlement,” he said.

“There will be substantial job losses, the order of which the BBC has never ever seen, which will be much more fiercely resisted than pension changes. For those who woke up this morning at 6am to no John Humphries, it showed that these things are possible.

“We are used to Tube strikes – there’s no Bob Crow in the NUJ, but I would expect as the licence fee settlement bites over the next 24 months there will be a lot more militancy.”

Pension changes

The journalists taking part in the strike are concerned about the BBC’s planned changes to its pension scheme.

The BBC plans to reduce its £1.5bn pension deficit by capping pensionable pay increases at 1 per cent from next April. The amount BBC staff pay into the scheme would be reduced, from 7 per cent to 6 per cent, and in return they get a “career-average” benefit pension, based on the average salary over their whole career. It would be valued up by 4 per cent every year, an increased on the previous offer of 2.5 per cent.

When drawing the pension, the former staff would see payments increase in line with inflation – by up to 4 per cent, also up from 2.5 per cent.

Mr Elstein said the changes were “draconian”, but difficult to avoid.

“The truth of the matter is the BBC management got to the issue very late in the day, after it had turned into a serious crisis. What they have imposed is pretty draconian and what has really upset staff is that a lot of the managers who are imposing these changes have been the beneficiaries of an extra generous pension scheme which is non recoupable.

“There is a lot of anger.”

BBC response

A BBC spokeswoman said: “We are disappointed the NUJ have gone ahead with today’s industrial action. This is despite the other four unions accepting our revised offer, and feedback from staff that indicates the same. It is the public who lose out and we apologise for any disruption to services.”

BBC Director General Mark Thompson said: “It has never been more important to ensure the BBC is spending every penny of licence fee payers money wisely and delivering the quality programmes and services audiences want. We believe the current pension proposals are realistic and affordable, and will provide fair pension provision for BBC staff for the future.

“This has been a difficult period for staff. However, the people who lose out most in any strike action are the very people we are here to serve – our audiences.”