Here is the text of a news release from the National Federation of retail Newsagents website about the treatment of newsagents by News International in relation to proposed new contracts:
LONDON DISTRICT QUESTIONS NI’S DIRECT TO RETAIL TERMS AND CONDITIONS OF BUSINESS
An emergency meeting was called by NFRN London District President Omkar Patel yesterday in order to review the imposing Retail Terms and Conditions of Business posted out to London and Birmingham newsagents during last week.
Despite increasing requests from News International over recent months in wanting to work more closely with independent newsagents and the NFRN, it is clear that News International have formulated the new Terms without any consultation or prior presentation to the NFRN. The resulting four pages of Conditions – together with a stinging tariff of administration charges – clearly looks to impose a draconian trading relationship with its retailers.
Omkar Patel said: “It is crystal clear to us that News International is driving a dictatorial relationship with its newsagents on everything from holding deposits for the lifetime of trading with NI, mandatory weekly payment of account, incredible charges of +3% above Bank of England base rate for non receipt of payment on the day and all this even if the invoice sent to you is massively inaccurate due to missed returns and voucher credits. And if NI wants to change any of its terms with retailers they simply promise to give you just 7 days notice!”
Mr Patel said that the NFRN will urgently engage with News International on a fifteen point agenda that will aim to clarify, modify and provide a more balanced and positive direct trading relationship with the Publisher. “It is absolutely critical that News International listens to our point of view very carefully if it is to truly support the positive sales of its newspapers through our members,” Mr Patel emphatically stated.
While there is a considerable difference between the newspaper distribution models in the UK and Australia, it is appropriate that Australian newsagents are well informed on moves by News in the UK.
Hi Mark,
This is an interesting storm in a tea cup. News International has for decades been at the lead of industry change and the National Federation of Retail Newsagents have been at the protectionist end.
Clearly the two positions are not totally compatible. Which is sad because the real losers have been the small independent news shopkeepers.
I am not a London retailer and will not be part of the new distribution model, but the London NFRN District statement strikes me as a ‘shooting from the hip’ response to change.
The only way of resolving the differences is to talk and over the past 14 months I have found that this is the most fruitful approach.
From the significant problems of the launch of Broxbourne to the now smooth running I have had several conversations with NI people and I have regularly posted on my blog of their good service.
Its my view that the only way forward for London retailers is to get around the table with NI and sort it out. If they don’t do this the small newsagents will be the losers along with the NFRN.
Steve
Steve,
Thanks for clarification. News is heading into contract discussions here and it would appear that newsagents have not sorted out their approach and are therefore likely to complain in the future.
The best way to negotiate anything is to build your case, develop a fair win win strategy and pursue this professionally.
Mark