I have heard from a number of newsagents that News Limited moved ground last week on the new contracts on an effort to get newsagents to change their minds and sign.
I am told the change in approach became necessary given the considerable number of newsagents who had not signed the new contracts. I’m also told that most of those applying to take over delivery runs were not appropriate to News Ltd needs.
The contract variations I have head about include:
- Three month opt out clause. Newsagents to have the right to opt out for any reason within three months of signing.
- Elimination of unprofitable territory areas. Some newsagents have finally been successful in eliminating unprofitable parts of their territories.
- Additional weekly payment from News. Some newsagents have negotiated a fee as high as $100 a week on top of other fees in return for signing the new contracts. It appears that the fee size relates to the profitability of the run.
These and other benefits negotiated individually by newsagents demonstrate that News is prepared to move in order to keep good newsagents in place. It also shows what newsagents can achieve when they work together.
The meeting organised by South Australia newsagents prior to Christmas has been crucial in achieving a more equitable outcome for newsagents.
Mark,
Points 1 and 2 are not new and I believe they have been offered formally uopfront in these new contracts. Point 3 has always been “on” for non viable territories, especially where there are no alternatives.
Once again point 3 is a one to one consideration.
Graeme, I disagree based on what newsagents have told me.
Mark,
My comments refer to the “new” contracts after the first two years. After reading your comments I now see the condition referring to the 3 months notice may have been brought forward. A good miove showing more immediate flexibility.
I will howver stick by 2. as this has been going on for individual cases for yonks. I have been involved in many of them as has No. 3.
Graeme,
Each of the three benefits negotiated by the newsagents I have spoken with was not on the table or available to them until their negotiations last week.
I posted this information here to ensure that newsagents yet to make a decision about their contracts are informed of what could be on the table.
Mark
As I understand it a ” decision” about the contract was to be made by the 8th January by Newsagents with no extensions after this date.
Why post ( on 11th Jan ) speculative, and that is what it is….. information that may or may not be true. – after the close off date. ?
I cannot see how it helps a Newsagent to make a decision about signing when the close off date has passed.
Otherwise your comments are just that – speculative without material foundation.
Pro,
No speculation here. What I have written is factual. I have been told of these changes by several newsagents.
Further, I understand that some newsagents who had not signed by the due date were afforded more time to consider the new proposals from News.
Given that none of this had been shared publicly and given the considerable stress being experienced by newsagents on this issue, I felt it appropriate to share here what I knoew to be true.
To Proactive.
Thanks to what Mark wrote I was able to negotiate changes which I had not bee able to negotiate previously. While I have not got the terms I wanted, they are much better than I had previously got from News.