OTTAWA, March 25 /CNW Telbec/ - CBC/Radio-Canada's Senior Executive Team
outlined its 2009-2010 business plan for employees today. The strategic
blueprint for managing the Corporation through the current financial crisis
was approved by the Board of Directors on March 17.
As anticipated, the plan includes major cuts to services, programs and
people, measures necessary to bridge a financial shortfall that the
Corporation estimates will reach $171 million in 2009-2010. Most notably, the
plan calls for a reduction of up to 800 positions (full time equivalents).2009-2010 business plan highlights:
- Anticipated shortfall of $171 million
- Reduction of up to 800 positions
- Commitment to regional footprint despite scaling back of local
programming
- Preservation of non-commercial radio, Canadian content in prime time
- 10-20 per cent cut in executive compensation
The downsizing process will commence right away, with layoffs beginning in
the summer months and finishing by the end of September 2009. Between now and
then, management will continue working closely with the unions to find
creative ways of reducing the number of job cuts required to meet budgetary
targets. The first step in that process is the immediate implementation of a
targeted Voluntary Retirement Incentive Program, which has been submitted to
Government for approval.
"People are the foundation of our success," said Hubert T. Lacroix,
President and CEO. "We've done and will continue to do everything we can to
minimize the impact of the situation on our staff. But in a company where 60
per cent of the overall budget goes to salaries, it's simply impossible to
bridge a gap of this magnitude without having a major impact on people."
"These were difficult and painful decisions to make - all the more so
given that, in so many ways, this is a golden time for public broadcasting in
Canada," continued Lacroix. "Our audience numbers are at historic highs. We're
producing some of the most compelling content we've ever made. We're leading
the way amongst broadcasters online. We've entered a new era of cooperation
with our unions. We run one of the most efficient public broadcasting
organizations in the world. But all that is being threatened now by factors
that are out of our control."
The Corporation developed its plan based on a scenario that was submitted
to Government in February 2009 which assumes a $158 million shortfall and $13
million in strategic investments for the coming year. That scenario is based
on the Government authorizing the Corporation to raise $125 million through
sale of some of its assets. The shortfall can be attributed to a convergence
of factors: declining ad revenues, increasing costs related to programming, a
base salary funding shortfall, and aging infrastructure. The situation is at
risk of being magnified by the continued deterioration of any one of those
factors or by hurdles encountered during the asset sale process.
Above and beyond staff reduction, several measures are being put in place
to bridge the gap. Those include:
- scaling back of regional radio and television programming;
- decrease in current affairs, drama, music, and special event
programming;
- reductions in news;
- repeat presentations throughout the schedule to make up for reduced
content production;
- reduction of marketing budgets;
- streamlining of production methods;
- 10-20 per cent cut in executive compensation;
- cutting of discretionary spending (travel, hospitality, etc.);
- slowing of recruitment.
Lacroix explained that while the scope of services is being compromised
today, the plan was developed to allow the Corporation to keep the core
elements of its strategic plan and preserve its ability to serve Canadians:
"The choices we've made are anchored in a clear vision of what we want and
need to become as a 21st century public broadcaster. My job is to keep the
CBC/Radio-Canada whole, and to try not to renege on or back away from any
whole elements of our mandate. While it's impossible to let go of as many
people as we are without sacrificing services, it's critical that we stay
focussed on becoming a content company, on being a leader in reaching
Canadians on new platforms and on being deeply rooted in the regions."
With that in mind, the plan protects the Corporation's focus in several
key areas:
- the non-commercial nature of radio will be preserved;
- television will continue to consist of 80 per cent or more Canadian
content during prime time;
- every effort has been made to protect our regional footprint;
- all major market morning and drive-home radio shows will remain on the
air;
- we will maintain our strategic investment in new media and new
platforms;
- funding for employee training programs will remain in place.
Further details on the impact of cuts to services and programming will be
available Thursday.About CBC/Radio-Canada
CBC/Radio-Canada is Canada's national public broadcaster and one of its
largest cultural institutions. With 29 services offered on radio, television,
the Internet, satellite radio, digital audio, as well as through its record
and music distribution service and wireless WAP and SMS messaging services,
CBC/Radio-Canada is available how, where and when Canadians want it.
Through this array of activities, CBC/Radio-Canada brings diverse
regional and cultural perspectives into the daily lives of Canadians in
English, French and eight Aboriginal languages, in seven languages on its
international Radio service, Radio Canada International, and on its Web-based
Radio service RCI viva, a service for recent and aspiring immigrants to
Canada.
For further information: Angus McKinnon, CBC/Radio-Canada, (613)
288-6235, Cell: (613) 296-1057, angus.mckinnon@cbc.ca
