Proposed cost-cutting measures would decrease supply of YLE programmes

Mikael Junger

print this

The planned drastic contractions in the operation of the Finnish Broadcasting Company (YLE) would in practice lead to a decline in the supply of programmes transmitted by the company, as the aim is that the proposed decrease in production would not be replaced by buying cheap programmes from outside the company.
      This is what YLE CEO Mikael Jungner says. He has warned his personnel of potential cost-cutting measures which are to be resorted to if the funding of YLE cannot be secured.
     
According to Jungner, the best way to secure the future would be to implement the proposal made last spring by a working group chaired by MP Mika Lintilä (Centre).
      The working group proposed that in the future YLE should cover the funding of its operations by a media fee of EUR 175 that all Finnish households should pay, regardless of whether or not they have a television.
      The problem is that the proposed sum will no longer be sufficient. YLE’s wages and salaries have increased to such an extent that Jungner is now calling for a index adjustment to the fee.
      If the required funding does not materialize, YLE will be forced to reduce some 300 man-years and to cut down on programme purchases by some 30 %, according to preliminary calculations.
     
At present, YLE employs around 3,300 permanent employees, of whom 83 % are directly involved in making programmes.
      So far, there have been no considerations on the focus of the necessary reduction of 300 people, says Jungner.
      It is a matter to be discussed in co-determination negotiations, but at the moment, the company has not reached that point quite yet.
      ”We have just brought forward the threat, and now we will discuss the matter with employee organisations”, Jungner notes.
      Jungner managed the previous large reorganisation at YLE over the period from 2002 and 2007. The present requirement to reduce the number of employees is only half of the previous one.
     
YLE buys domestic programmes from outside the company for approximately EUR 20 million every year. The goal is to buy some 20 % of all content from outside sources.
      The television has already reached this goal, but in the radio and on the Net only a small percentage of the production is bought from subcontractors, Jungner reports.
      Jungner admits himself that the cutting of the subcontracting appropriation by 30 % would be a ”catastrophe” for Finnish production companies. Stiina Laakso, the executive manager of the Association of Independent Producers in Finland (SATU), agrees with Jungner.
      ”This kind of information makes one think whether or not there is any faith in the creative field left in Finland”, Laakso regrets.
      SATU represents 15 large or medium-sized producers of audiovisual content. Laakso estimates that the planned 30 % restriction at YLE would lead to the failure of four middle-sized businesses.
      Even though the plans are currently only threats, Laakso is really worried, saying that this kind of message when all channels are facing problems makes one contemplate whether or not people are really interested in this branch.


Previously in HS International Edition:
  Decision on funding for Finnish Broadcasting Company to be made next week (20.8.2009)
  Survey: Finns do not regard proposed YLE media fee as justified (19.8.2009)
  “Media fee” to replace TV licence (24.4.2009)

Helsingin Sanomat