Key facts
- BBC Director General Matt Brittin acknowledged a real prospect of strikes.
- The broadcaster plans to cut up to 2,000 jobs.
- Staff rejected an average 2.1% salary increase.
- Brittin stated that a 1% pay increase for all staff is equivalent to approximately 180 job losses.
- The BBC has lost £1.3 billion in revenue over the past 10 years.
- Brittin admitted to not fully understanding the extent of the BBC's financial issues when he started.
BBC Director General Matt Brittin has conceded that industrial action is a real prospect at the broadcaster as it navigates a dispute over pay and plans to cut up to 2,000 jobs.
During a staff call on Tuesday, Brittin acknowledged the possibility of strikes, stating it would be difficult but necessary to face the reality of a disruptive time for the industry. He explained that increasing the pay offer further would directly hamper the BBC's ability to reduce job cuts, likening a 1% pay increase to approximately 180 job losses and describing the financial situation as having a "bare cupboard."
Brittin, who took over the top job in May, is overseeing cost-cutting measures aimed at saving £500 million by 2028. He admitted that he had not fully grasped the extent of the BBC's financial problems earlier, noting that the corporation had run out of reserve funds and that income from its commercial division had already been spent.
He indicated that while senior executives would receive no pay rise, the lowest-paid staff would see an increase above 2.5%. The potential for strike action comes as Brittin champions the BBC's national importance during ongoing talks with the government regarding its future funding.
Staff also confronted Brittin and Chief Content Officer Kate Phillips regarding a decision to renege on guaranteed job offers for apprentices. Phillips stated that efforts were being made to find placements for those affected.
Traditional broadcasters are facing financial pressure, with Channel 4 planning to cut 340 jobs, or 28% of its workforce.