Fairfax Suburban asks staff to consider 9-day fortnight

Fairfax's Suburban Newspapers division has asked staff to consider nine-day fortnights, following staff cuts and a $468m loss reported by the group in February.

Management of the Auckland-based division of Fairfax Media sent out the memo this morning, general manager David Penny told NZPA.

Fairfax Suburban publishes 18 titles in the Auckland region, including the Central Leader, East and Bays Courier, Manukau Courier and Rodney Times.

Engineering, Printing and Manufacturing Union spokesman Rob Egan said staff had received the offer and the union and those affected were beginning negotiations with the company.

Fairfax Magazines, publishing titles including TV Guide, Cuisine, NZ House and Garden and Skywatch, had also asked staff to cut down to nine-day fortnights.

The company, which also publishes The Dominion Post and The Press, in New Zealand and the Age and the Sydney Morning Herald in Australia, had its long-term corporate credit and debt ratings downgraded by Standard and Poor's from BBB- to BB+ last month.

In addition, the rating on Fairfax's stapled preference securities (which attract intermediate equity credit from Standard & Poor's) was lowered to B+ from BB. The outlook was stable.

In April, Fairfax announced about 70 pre-press and advertising production jobs from a pool of 218 would be shed as the company moves production into four regional hubs.

In results released on February 23, Fairfax reported a net loss of $468m for the six months ending December 28, compared to a profit of $247.65m in the previous corresponding period.

Chief executive and managing director Brian McCarthy said the company had battened down the hatches and was riding out the downturn in the economy that had hurt the advertising market.

- NZPA