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John Fairfax Holdings Limited
ACN 008 663 161

Fairfax implements lockout in labour dispute

SYDNEY, September 1, 2000 – John Fairfax Holdings Limited [ASX:FXJ] announced today that it had, in response to ongoing disruptions of the publication of its newspapers and magazines from industrial action taken by the MEAA, imposed a lockout on some editorial employees, effective from 3:30 pm today.

There will be no interruption to the continued publication of the Company’s newspapers, including tomorrow’s editions.

The publications are The Sydney Morning Herald, The Australian Financial Review, The Age, The Sun-Herald, The Newcastle Herald, The Illawarra Mercury, BRW and other community newspapers.

Attached is the text of the letter, signed by the publishers of each masthead to their respective staffs, announcing the lockout.

The Company said it wanted the immediate resumption of negotiations with the MEAA provided that there would be no further industrial action during such negotiations.

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The text of the letter, signed by the publishers of each masthead to their respective staffs, announcing the lockout:

Dear Colleague

Fairfax is committed to concluding enterprise arrangements with the MEAA at the earliest opportunity. While much work has already been invested by both sides to achieve this result, we regret to report that matters presently appear to be at an impasse.

We aim to achieve an agreement which allows Fairfax to enhance conditions for editorial staff while maintaining sustainable cost structures into the future. Our present offer retains profit sharing in a sustainable form with a commitment to minimum bonus payments in each year. Concerns with respect to merit are also being addressed.

We have proposed that negotiations recommence Monday morning, September 4, 2000, at 10 am, provided we had an assurance that there will be no further industrial action, including rolling strikes, bans or limitations on work while negotiations continue.

This has been rejected by the MEAA.

As you know, work has been disrupted on a rolling basis since Wednesday evening. This has created an impossible, uncertain and unacceptable environment for the production of our newspapers and magazines.

The Company is therefore implementing its right to take protected industrial action, and is implementing a lock-out, effective at 3:30pm today. While this is not our preferred choice, the issues involved are of such importance that we are regrettably left with no other alternative given the ongoing disruptions to production of our publications.

It is also important for you to understand that, as a result of the industrial action undertaken by MEAA, it is unlawful, under s187AA of the Workplace Relations Act of 1996, for us to pay you during the whole period in which any of you may have been engaged in industrial action.

We want an immediate return to negotiations and to promptly reach mutual agreement. This is only possible, however, if there is a moratorium on any further industrial action while negotiations continue.

We sincerely hope all industrial action will cease and we can return to negotiations with your acceptance of the key condition outlined in this letter.

 

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