Telegraph and Express in row over pension scheme
By Leah McBride Mensching, Wednesday 14 November 2007 at 22:43 :: Labor & Employment :: #854 :: rss
Express Newspapers and the Telegraph Media Group are battling publicly over the fate of the pension scheme at their joint printing venture West Ferry, MediaGuardian reported Wednesday.
The controversy comes after Telegraph's decision to leave the venture, singing a new deal with News International to begin in 2009.
The Telegraph's directors need to “recognise their moral obligations” to pension members, said Robert Sanderson, financial director at Express Newspapers, according to MediaGuardian.
The Express has offered £33 million, but claims the Telegraph did not make an adequate contribution, the company stated. Sanderson said he has written to the UK's pensions regulator, asking for action to be taken so both parties can meet the £66 million pension deficit.
“Sadly, the Telegraph is refusing to match the Express and has so far made an offer which has been rejected by the Express and the trustees as wholly insufficient and has meant that the board of West Ferry has been unable to agree a common position to finalise with the trustees,” Express said in a statement published in Wednesday's Daily Express.
The Telegraph said it is surprised by the Express's statement, and that the pensions regulator was already involved in the dispute.
“In fact, both shareholders are currently awaiting notification from the Pensions Regulator for the next stage of the process in determining both the funding of the scheme and the timing for payments to meet the deficit,” the Telegraph said in a statement, according to MediaGuardian.
The Telegraph announced last month it would stop printing in West Ferry within two years, and will then print the Daily and Sunday Telegraph at News International's new printing facility at Broxbourne, Hertfordshire.
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