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Guardian strike: Staff agree 48-hour walkout over Observer sale to Tortoise

Press Gazette · Dominic Ponsford · last updated
A composite image showing, at top, the Companies House page for Tortoise Media Ltd and at bottom the lobby of Guardian News and Media, which publishes The Observer. The image illustrates an article looking at who Tortoise's shareholders are as it makes a bid for The Observer.

Guardian and Observer journalists have agreed to a 48-hour strike in protest at the planned sale of The Observer to Tortoise Media.

The strike will take place on Wednesday and Thursday 4 and 5 December – the earliest point at which it is legally allowed to happen. Press Gazette understands that a second 48-hour stoppage has been pencilled in for the following week.

Journalists have opted for 48 hours, rather than 24, to maximise disruption and the stoppage would be likely to severely disrupt print production.

The decision to stage the walkout came after a union meeting on Wednesday attended by several hundred staff. Press Gazette understands the vote was overwhelmingly in favour of a strike.

Press Gazette understands that around 500 journalists at The Guardian and Observer titles are members of the NUJ and around 400 took part in the official strike ballot which took place ahead of today’s meeting.

Some 93% of those voting agreed to strike action, suggesting overwhelming opposition amongst staff to the Tortoise Media bid for The Observer.

Staff remain concerned about job security for the 70 Observer journalists who would transfer across to Tortoise Media and questions remain over funding for the bid.

Tortoise Media majority shareholder and founder James Harding has promised £25m of investment in The Observer over five years to turn it into a self-funding, paywalled newsbrand. The plan is to attract 100,000 new digital subscribers.

However, Observer insiders have now been told that the planned investment in place is £20m.

Journalists question whether this will be enough to cover the gaps in Observer coverage of sport, business and foreign news that would be left by departing The Guardian, and they see loss-making Tortoise as a precarious owner.

Press Gazette understands that NUJ representatives met Guardian Media Group management in ACAS-brokered talks on Thursday and were told that due diligence for the Tortoise Media bid has now been completed.

One Observer insider said the mood is “very dark” and there is an expectation that the deal looks likely to go ahead. Guardian editor-in-chief Kath Viner, who also sits on the Scott Trust board, is understood to have power of veto over the deal and one insider said journalists are hopeful she will block it.

The GMG board is now believed to have put the offer to the Scott Trust board for a decision in principle. The Scott Trust is the limited, not-for-profit company which owns GMG and has the ultimate say over whether to sell The Observer.

Press Gazette understands the deal will need 75% approval from the 12-person Scott Trust board in order to go ahead.

NUJ representatives on The Guardian and Observer believe that under their house agreement with management, the proposed deal should be suspended whilst the matter is in dispute. They have also questioned why there is apparent haste to push the deal through before Christmas under what is seen as a Tortoise-imposed timetable.

GMG is currently in a period of exclusive negotiations with Tortoise Media to buy The Observer, but Press Gazette understands at least one rival consortium has expressed an interest in buying the world’s oldest Sunday newspaper, which is believed to sell around 100,000 copies per week.

GMG chief executive Anna Bateson has hinted at cutbacks and changes to The Observer if the Tortoise deal does not go ahead, warning staff in a letter last month that if the deal does not proceed there would be “a strategic audit of The Observer which would involve some difficult choices – and that would need to happen urgently”.

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