‘Observer’ to close

Press, 18 July 1980, Page 6

‘Observer’ to close

NZPA , London

;The management' of the London “Gbserye-r.” -Sunday newspaper slidvirhad begun procedures for dismissing all its staff after, the" breakdown of talks , with the National Graphical Association printing union. The paper says it will close in 90 days. The paper, one of Britain’s oldest; was bought and rescued from difficulties some time ago by the. American Atlantic Richfield oil firm, and its,circulation has risen during the last 18 months, particularly while publication of the “Sunday Times” was suspended for 11 months by the Thomson group. The “Observer” management has been unable to agree with the printers over increasing paging, manning, modernisation, and pay.

The paper. employs some 500 people including 80 journalists and 28 National Graphical Association members. In'addition- about 10'10 people" work part-time .for the paper. The statement by management'said that the board of the “Oliserve-r” “regrets the National Graphic Association’s rejection of the company’s/ terms for the expansion of: the newspaper (from 48 pages to 64 pages). “This decision by the N.G.A. 'was reached in full knowledge that the company had- reached the . absolute limits of what it could afford during these negotiations, and that if agreement could not be reached, the company would be forced to issue notice.of closure.” f . It added: “Over many months the company has sought to reach agreement which would enable . Jhe

paper to be. expanded to 64 pages on Saturday night. Substantial sums have been invested in plant... . However the N.G.A., on behalf of its members in the machine room, has rejected an offer pf additional staff, additional holidays, and a high rate of pay.” All the other unions have reached agreement with the paper.

The “Observer” which began in 1791, was bought in 1976 by the American oil tycoon, Robert ’ Anderson, whose group, Atlantic. Richfield, promised financial aid. The paper was. founded in the days when the entire Sunday press was dismissed as scurrilous and disreputable/ but gained respectability and went , on to become a “quality” Sunday that has a string of awards and readership approachling three million.