E tū negotiation specialist, Michael Wood, says it’s vital TVNZ follow the correct processes through such significant changes. Video / NZ Herald
New figures shared exclusively with the Herald have revealed just how much New Zealand’s TV state broadcaster expects to spend in redundancy costs following its controversial restructure.
Information provided to the Herald under the Official Information Act (OIA) shows TVNZ forecasts the redundancy bill for its restructure to reach $2.6 million.
The cost of producing the two most prominent shows that were cut, Sunday and Fair Go, was also provided under the OIA request.
Those programmes cost $2.7m and $1.5m respectively to produce in the past financial year.
TVNZ told the Herald the broadcaster, like many businesses across Aotearoa, had been affected by recessionary economic conditions and needed to bring operational costs in line with its revenue.
“We have a clear mandate to be a commercially viable business,” TVNZ said in a statement.
“TVNZ has faced into unprecedented headwinds in the past 18 months - an ongoing advertising downturn, which in particular has affected spend in the traditional TV market, and an unlevel playing field with big tech.
“We are responding to this by accelerating our transformation and realigning our operating model with a digital-first focus.”
Speaking to the Herald beforetoday’s mediation, E tū negotiation specialist Michael Wood said the costs show TVNZ was getting good value for money given the quality of the stories produced.
“There’s a cost to producing these sorts of programmes, but they also produce revenue. Sunday, for example, in TVNZ’s 2023 annual report is presented as the fifth top-rating show in New Zealand and TVNZ has said that it has a positive yield. In other words, it actually brings in more revenue than the cost that’s been presented there as well.”
The TVNZ spokesperson said the profitability of Sunday had declined year on year, and it was not projected to be profitable next year.
“Sunday is also a brand that is geared towards traditional TV and we need to evolve how we bring current affairs to audiences.
“TVNZ remains committed to delivering trusted news and current affairs for New Zealand audiences, and what that looks like will change as we shift to a digital-first model.
“We continue to invest $40m annually into news and current affairs and will continue to provide a strong line up of programming, alongside new digital products.”
Wood said the figures revealed today break the myth that everyone at TVNZ is on a “super-high” salary.
He told the Herald the move was “exceptionally short-sighted” and a “dereliction of its duty” for a public broadcaster to walk away from news and public affairs.
“Of course those redundancy costs aren’t even the full costs, because the company has botched this process, they’re facing significant legal costs with their big five legal firm who is having to represent them in this issue and they’re potentially facing further costs.”
Michael Wood from E tū outside the TVNZ building. Photo / Jason Oxenham
Wood believed cutting profitable shows and having to pay a forecast $2.7m in redundancies did not make sense and showed “panicky” decision-making.
“Over 400,000 people per week still tune in to watch Fair Go, to watch Sunday, those are big audiences, and if the company worked with staff to develop ways of getting these great stories onto digital platforms in a better way there is a positive future there.”
He said today was the only scheduled day of mediation but depending on how things go there could be further discussions next week.
Katie Harris is an Auckland-based journalist who covers social issues including sexual assault, workplace misconduct, crime and justice. She joined the Herald in 2020.
