The costs linked to the collective layoff announced in the fall are contributing to widening losses at TVA Group as revenues continue to fall and fears surrounding a labor dispute persist.
A charge of $20 million resulting from the streamlining of operating activities is included in the year-end results released late Wednesday.
The Montreal broadcaster announced on November 2 that it was laying off 547 employees, the equivalent of approximately a third of the workforce.
The big boss Pierre Karl Péladeau then said that the deficit situation in which the company finds itself is no longer viable, that it testifies to the seriousness of the situation and that the business model of traditional television is disrupted for always.
Revenues for the months of October, November and December fell by 12% to 152 million. A tax recovery of six million mitigates the losses for the year-end quarter, but the latter nevertheless amount to 16 million whereas they were less than $300,000 a year earlier.
For the entire 2023 financial year, TVA Group’s net loss more than quintupled to 48 million. It was 9 million in 2022.
“The results of the television broadcasting sector continue to be greatly affected by the crisis facing the media industry,” comments the big boss, Pierre Karl Péladeau.
“The deployment over the coming months of the measures announced on November 2, including the tightening of TVA Group’s mission as a broadcaster only, the reorganization of its information department and the optimization of its real estate portfolio, all leading to the elimination of 547 positions, is essential to allow the company to regain a better financial position to ensure its survival,” he continues.
Pierre Karl Péladeau reiterates that government and regulatory authorities must put in place concrete actions, now, in order to grant relief, flexibility and tax credits better adapted to the realities relating to film and television production.
Negotiations Blitz
Intensive negotiation meetings have been taking place since the beginning of the week and will continue next week between the employer and the TVA employees’ union with the aim of renewing the collective agreement.
The objective is to tie up all the threads in order to reach an agreement in principle surrounding jobs, subcontracting, and working conditions by 1er March. If negotiations fail, a labor dispute could arise as early as next month.
The employer is also preparing for a labor dispute in order to deal with the possibility that it would be impossible to conclude discussions on an agreement.
“Like any responsible employer, although we wish to reach a negotiated agreement, we must plan for all eventualities should a labor dispute arise (such as a strike or lockout). This implies in particular the establishment of a contingency plan, in order to ensure the continuity of business and VAT operations if necessary,” indicates The Press TVA spokesperson, Véronique Mercier.
She specifies that the employer’s desire remains to reach a negotiated agreement but prefers not to comment further “out of respect for the negotiations.”
The TVA employees union did not wish to grant an interview to The Presssaying he prefers to concentrate his energies on the current negotiation.
According to our information, however, the employer is showing openness to potential “landing strips”, which gives hope of avoiding a labor conflict.
The talks take place in the presence of a mediator who until very recently wore the hat of conciliator. At the end of his mandate as conciliator, he became a mediator under the law, which changes nothing in fact. It’s the same person doing the same job. His presence aims to bring the two parties closer together.