News Corp is grappling with financial and operational challenges as it faces allegations of underpaying its staff, according to a recent investigation by the media union. The company’s latest financial filings reveal a net loss for the second consecutive year, while the Media, Entertainment & Arts Alliance (MEAA) is scrutinizing potential pay irregularities.
The financial strain is evident as News Corp’s Australian headquarters on Holt Street reports a net loss after tax of $27.4 million for the fiscal year. This comes amid declining advertising and subscription revenues, compounded by the absence of cash inflow from Meta. Digital subscriptions for the company’s news mastheads have shown minimal growth, finishing the financial year with 993,000 subscribers, an increase of just 25,000.
Allegations of Underpayment
The MEAA’s investigation into News Corp’s pay practices could add to the company’s woes. The union is currently examining a tranche of timesheets and wage reports for Melbourne-based staff, provided under the Fair Work Act. The suspicion is that News Corp has underpaid a significant number of employees over the past decade, particularly concerning overtime remuneration.
According to the MEAA, News Corp is required to pay double for any additional days worked beyond five shifts in a seven-day week. If the union’s suspicions are confirmed, the financial implications for News Corp could be substantial, potentially amounting to millions.
“If News Corp insists on sacking the bulk of their workforce and then working the remaining staff to the bone, they need to pay up,” said Cassie Derrick, MEAA media director.
While News Corp’s workforce is not as heavily unionized as other major media companies like the ABC or Nine Publishing, it remains one of Australia’s largest employers of journalists, giving the MEAA significant representation within the company.
Corporate Shifts and Challenges
Meanwhile, Lachlan Murdoch, News Corp’s executive chairman, is navigating a corporate restructuring following the unexpected departure of Siobhan McKenna, his longtime aide. McKenna’s exit marks the end of a 20-year professional relationship, leaving questions about the future direction of News Corp’s operations.
McKenna, who recently stepped down from roles at Foxtel, Sky News, and Nova, is now focusing on her position as chair of Australia Post. Her departure from News Corp coincides with speculation about potential changes in the company’s strategic focus and leadership dynamics.
Industry observers are questioning whether Murdoch will seize this opportunity to sell Nova, a profitable but challenging legacy media company. The search for McKenna’s replacement and the potential reorganization of reporting lines within News Corp are key issues facing the company.
The Roar and Media Maneuvers
In another development, Dylan Howard, a prominent Australian journalist known for his controversial career in the United States, has been linked to the sports website The Roar. Although Howard denies any intention to invest, his potential involvement has sparked interest within the media industry.
Howard, who has a reputation for high-profile scoops and controversies, is reportedly back in Australia and exploring new media ventures. His possible connection to The Roar, despite denials, highlights the ongoing intrigue surrounding the site’s future.
Amid these shifts, former 7News Spotlight reporter and Sky News journalist Taylor Auerbach is launching a new podcast, “The Hearing,” focusing on legal and media news in Australia. Auerbach’s move comes after a legal dispute with Seven, underscoring the dynamic and often contentious nature of the media landscape.
Looking Ahead
The challenges facing News Corp, from financial losses and underpayment allegations to leadership changes and strategic uncertainties, underscore the complex environment in which the company operates. As the media industry continues to evolve, News Corp’s ability to navigate these issues will be critical to its future success.
With the MEAA’s investigation ongoing and potential corporate shifts on the horizon, the coming months will be pivotal for News Corp as it seeks to address these challenges and stabilize its operations.
