The History of the Times
Page 3
Management’s attempt to break the NGA’s monopoly on keying in text in favour of journalists having the powers of direct input was one of the causes of the shutdown of The Times for just short of a year between November 1978 and November 1979. Led into battle by TNL’s chief executive, Marmaduke Hussey, management attempted to force the print unions to conclude new deals that would pave the way for the computer technology’s introduction. When no comprehensive deal emerged, management shut down the papers in the hope of bringing the unions back to the negotiating table. As a strategy it proved a miserable failure. It cost Thomson £1 million a week to keep its printing machines idle and to have a nonexistent revenue from sales or advertising. The fear that The Times’s best journalists would be poached by rival newspapers ensured that all the journalists were kept on on full pay to do nothing. This was a clear signal to the print unions that there was no intention to shut down The Times permanently. Furthermore, they could also see that, buckling under the costs, the management were increasingly desperate to resume publication. By sitting it out, the printers could drive a harder bargain.
Management did attempt one daring breakout. It was often alleged that it would be cheaper to print the newspaper abroad and airfreight it into Britain than print it under the restrictive practices of Fleet Street. What was certainly the case was that 36 per cent of advertising revenue in The Times came from overseas. So it was decided to print a Europe-only edition that would at least show that the paper was alive and could feasibly be produced elsewhere. A newspaper plant in Frankfurt agreed to undertake the task. This proved most illuminating. In Fleet Street, NGA compositors doing ‘piece work’ managed to type around 3500 characters an hour. They defended their high salaries by pointing to this level of expertise. But the German compositors in Frankfurt – women (all but barred by the Fleet Street compositors) working in a language that was not their own – managed 12,500 characters an hour (in their own language they could set 18,500).32 Such statistics told their own story.
But if a point was proved by the exercise, it was the value of brute force. The British print unions persuaded their German brothers to picket the plant. With ugly scenes outside, the German police discussed tactics with Rees-Mogg who was at the Frankfurt site for the launch. They offered to use water cannon on the crowd in order to clear a path for the lorries to transport the first edition out of the plant but they could not guarantee subsequent nights if the situation deteriorated further. Meanwhile, inside the plant, various sabotage attempts were being detected, including petrol-soaked blankets that had been placed near the compressor – potentially capable of causing a massive explosion, which, as Hussey put it ‘might have blown the whole plant and everyone in it sky high’.33 Reluctantly, Rees-Mogg gave the order to abandon production. Once again, management’s attempts to circumvent their unions had been humiliatingly defeated.
In November 1979, the TNL management formally climbed down and called off the shutdown. They had failed to secure direct input for journalists or to get the print workers to agree legally binding guarantees of continuous production. The only upside to this humiliation was that management was prevented from installing what would actually have been the wrong typesetting system (a disastrous discovery Hussey made late in the dispute when he visited the offices of The Economist and realized his mistake).34 The shutdown meant that The Times, which had long claimed to be Britain’s journal of record, had reported nothing for almost a year. Among the events it was unable to comment upon was Margaret Thatcher’s coming to power. The total cost to Thomson exceeded £40 million. The unions’ concession was that – already obsolete – computer typesetting would be introduced in stages but that NGA operatives would ‘double-key stroke’ all text.
That The Times returned at all after a stoppage of such duration was impressive. That it returned with circulation figures similar to those it had enjoyed before the shutdown was an extraordinary testament to the quality of the product and the extent to which its readers had mourned its absence. Indeed, such was the economics to which Fleet Street was reduced that the eleven-month shutdown left little enduring advantage to The Times’s competitors. The Times’s absence had increased their market opportunity. The Daily Telegraph, in particular, made gains. But gains involved pushing up production levels and this was only achieved at a cost that met the increase in sales revenue. When The Times returned, its rivals had to scale production down again but, thanks to union muscle, they were unable to cut back the escalating cost that had been forced upon them in the meantime.35
It might have been imagined that the journalists’ frustration at the print workers would have bonded them more closely with management in ensuring that The Times saw off its tormentors, but the failed shutdown strategy made many of them equally critical of TNL executives.36 Indeed, the success of the print workers in defending their corner emboldened some of the more militant Times journalists to see what would happen if they too pushed at a door that was not only ajar but loudly banging back and forth in the wind.
During the 1970s, salaries for Times journalists had lagged behind the spiralling inflationary settlements of the period. But during the shutdown, Thomson had kept faith with its Gray’s Inn Road journalists by continuing to pay their full salaries during the eleven months they were not actually doing anything. Furthermore, they were given a 45 per cent pay increase in 1979 to make up for previous shortfalls.37 Despite this, in August 1980 the journalists went on strike when TNL offered a further 18 per cent pay increase instead of the expected 21 per cent.
Of the 329 members of the paper’s editorial staff, about 280 were members of the National Union of Journalists (NUJ). The union meeting at which the decision to strike was made took place when many were away and – although it represented a majority of those who turned up to the meeting – only eighty-three actually voted for industrial action. They were responding to the call of The Times NUJ’s father of the chapel, Jake Ecclestone, who argued that it was a matter of principle: an independent arbitrator had suggested 21 per cent and in offering only 18 per cent TNL had refused to be bound by independent arbitration. That the NUJ chapel had also refused to be bound by it was glossed over.38
While the independent arbitrator had concentrated upon what he thought was the rate for the job, TNL had to deal with a law of the market: what they could reasonably afford. The difference between the two pay offers amounted to £350 a journalist but, if the knock-on effect of subsequent negotiations with the print workers was factored in, then TNL maintained the difference was £1.2 million. There was certainly collusion between print and journalist union officials in calling the strike. Although many journalists crossed the picket line, the NUJ had taken the precaution of getting the NGA to agree to go on strike too if management attempted to get the paper out.
Management had long come to accept that dealing with those who printed the paper was a war of attrition against a tenacious and well-organized opponent. But the attitude now displayed by some who actually wrote the paper was too much to endure in silence. The strike ended after a week but it destroyed the will of the existing management to persevere. When The Times returned on 30 August, its famous letters page was dominated by readers of long standing who had loyally waited for their paper’s return during the eleven-month shutdown but who now felt utterly betrayed. ‘It is impossible to believe in the sense, judgment or integrity of your journalists any longer’ was one typically bitter accusation. Subscriptions were cancelled, sometimes in sadness but frequently in anger at the fact that ‘you and your staff can have no feeling for your advertisers and readers. Other newspapers do not get into these situations. Your ineptitude beggars belief.’39 But the most important lecture came not from disgusted of Tunbridge Wells but in the day’s leader column, written by Rees-Mogg himself. ‘How to Kill a Newspaper’ ran the length of the page. It washed the paper’s dirty linen in public and some staff disliked the idea that their editor was writing a leader chastising the actions of many of his own collea
gues. Jake Ecclestone, ‘gifted but difficult’, was even named in the sermon that laid out before readers exactly the scale of journalists’ pay increases over the previous two years and contrasted it with the extent of the newspaper’s losses. Rees-Mogg pulled no punches, claiming that there could be no such thing as dual loyalty, for a journalist ‘is either a Times man first or an NUJ man first … if the strikers do not give their priority in loyalty to The Times … why should they expect that the readers, or indeed the proprietor, of The Times should continue to be loyal to the paper?’40
This was very much to the point, for the Thomson board had been meeting to debate that very question. Although it was denied at the time, it was the NUJ strike that tipped the balance in convincing Thomson executives to dispose of The Times and, with it, the other TNL titles.41 Sir Gordon Brunton had called senior colleagues to his beautiful country house near Godalming, Surrey, and it was there that the decision was taken. This was then ratified by the Thomson British Holdings board and, over the telephone, confirmed with Lord Thomson of Fleet. Preferring to live most of his time in Canada, Ken Thomson had taken over the family empire on the death of Roy, his father, in 1976. He felt little of his Anglophile father’s obvious pride in owning The Times. In the end, the ultimate proprietor did not take much persuading although, naturally, in the press release he stated, ‘it grieves me greatly’.42 It was Harold Evans, editor of the Sunday Times, who put it succinctly: ‘One can’t blame Lord Thomson … the poor sucker has been pouring millions into the company and has been signing agreements which have been torn up in his face.’43 Roy Thomson’s dream of securing The Times’s future forever had ended after only fourteen years and at a cost of £70 million. The Spectator’s media pundit, the historian Paul Johnson, summed up the situation:
The Times … is a femme fatale: it sent Northcliffe off his rocker, proved too expensive even for the Astors and wrecked Thomson’s reputation for business acumen. It could well drag down Murdoch and his entire empire, financially much less solid than Thomson’s, if he is fool enough to saddle himself with it.44
And yet, on New Year’s Eve, the last day in which bids for the paper would be accepted, Times Newspapers received an offer from Rupert Murdoch. It was for a mere £1 million, but it was a declaration of intent.
III
In all, there were around fifty bids, although given the criteria Sir Gordon Brunton and Sir Denis Hamilton had drawn up, less than a handful were seriously considered. The Aga Khan and a plethora of Middle Eastern bidders were ruled out by the decision to ensure that a potential owner had to be either British or from the Commonwealth. At a stretch this would be widened to include suitable (North) Americans. Rejected on personal grounds were Robert Maxwell, Sir James Goldsmith and Tiny Rowland.45
In so far as any one man could determine who would buy The Times, that man was Sir Gordon Brunton. Lord Thomson fully trusted his chief executive with the task of disposing of his most famous possession. Born in the East End and influenced as a student by Harold Laski, his tutor at the LSE, as well as by his experiences of wartime command in the Royal Artillery and Indian Army in Assam and Burma, Brunton combined formidable business acumen, left-leaning political inclinations and a committed interest in the Turf. He had joined the Thomson Organisation in 1961 and within seven years had risen to become its managing director and chief executive. Given that TNL had ultimately proved to be the one major failing company in Thomson’s British operations, it would have been understandable if Brunton had regarded its disposal as a matter of getting the best price in the fastest time with the minimum of fuss. But this was not at all how he saw his task. Rather, he threw his full weight behind finding a buyer who would ensure the survival of the famous newspaper, even if this meant declining a higher but separate bid for the Sunday Times on its own. By the 31 December deadline, Rees-Mogg’s consortium had proffered a token £1 for The Times. Believing that the paper’s viability was tied to staying within the TNL family, Brunton was fundamentally at odds with the Times consortium’s assumption that the daily could have an independent future. Consequently, he was equally dismissive of the attempts of Harold Evans to form a separate consortium to buy the Sunday Times. Like Rees-Mogg with The Times, Evans had been trying to encourage a range of investors to take a share in the future ownership of the paper he edited. At one stage he had been hopeful that the Guardian would be the paper’s saviour, although the Guardian’s board soon balked at the cost. But even if Evans had succeeded in attracting sufficient support, Brunton was having none of it, making his position clear in a telephone conversation in which Evans recalled the chief executive saying, ‘Consortia cannot deal with unions. And I am not selling single titles. I will not see The Times shut down.’46
In the 1960s, The Times’s then owners, the Astor family, concerned by the paper’s inability to make a profit, had also concluded that it could not stand on its own. They sought out the possibility of it merging with the Guardian. The Guardian enjoyed a higher circulation, but there were serious questions over whether the differences in political outlook (and the readership thereby attracted) could be harmonized successfully into one merged paper. When in 1966 the scheme fell through, The Times considered merging with the Financial Times. This would have created a newspaper of perhaps unsurpassable international authority with a readership profile tailored to suit a quality – and thus very lucrative – advertising market. The Times would have formed the main paper with the distinctive pink-papered FT inserted inside as its business section. Owned by Pearson, the FT was profitable and had established itself as the principal daily record of business and finance. But despite his protestations that owning The Times was about preserving the national interest rather than making a profit, Gavin Astor had considered Pearson’s price for buying The Times inadequate to the point of insulting. Meanwhile, Roy Thomson, owner of the Sunday Times, offered over £3 million for The Times. Considering the Astor family had bought it for £1.5 million in 1922, this gave some indication of how poor an investment it had proved. But the Thomson bid was far better than that from the Financial Times.47 Thus was given up one of the great opportunities to ensure The Times’s market sector pre-eminence so that it could successfully fund its own expansion. Instead, its future would depend upon subsidy from the wealth of its group owner.
In becoming the one hundred and eighty-third newspaper in the Thomson Organisation, The Times found itself in the same group as the Sunday Times. Despite the coincidence of the same word in the title, there was no shared ancestry between the two papers – both had always had different owners. Roy Thomson had bought the Sunday Times from its then owner, Lord Kemsley, in 1959. Only when Thomson purchased The Times in 1966 did the two papers find themselves, while still editorially independent from one another, sharing a common proprietor. Although his own experience was in guiding the Sunday Times to its extraordinary commercial success, Sir Denis Hamilton prided himself on his role in supporting Brunton’s fusion of these two very different newspapers into one company, Times Newspapers Limited. In fact, it was always cohabitation rather than a marriage and the decision to live together at Gray’s Inn Road, while not obviously affecting The Times’s editorial morality, was widely viewed as corrupting it in other respects. Courteous and highminded, this was not how Sir Denis saw it and he desperately wanted to avoid seeing what he regarded as one of his life’s achievements end in an acrimonious break-up. Thus he shared Sir Gordon Brunton’s view that whoever bought the potentially profitable Sunday Times would have to be equally committed to shoring up the losses of The Times. On no account should their creation, TNL, be broken up. This dovetailed perfectly with Murdoch’s plans since he did not think he could buy either paper separately. In the case of the Sunday Times, he thought the Monopolies Commission would block his purchase. In view of the daunting scale of its losses, he recalled, ‘I would not have had the guts to buy The Times on its own.’48 But if both were sold to him as a joint package, so these barriers were removed: the daily paper�
�s losses could be cancelled out by the Sunday’s revenue potential while the Government might permit him to own the Sunday paper if it meant that in doing so he could save the existence of the daily.
Having skimmed down the list, Brunton and Hamilton were left with what they considered were just two serious offers. One was from Rupert Murdoch, the other from Vere Harmsworth, third Viscount Rothermere. Besides its regional papers, Lord Rothermere’s Associated Newspapers owned the Daily Mail and part-owned the London Evening Standard. His great-uncle, Lord Northcliffe, as well as founding the Daily Mail, had owned The Times between 1908 and 1922, saving it from bankruptcy. But future profit rather than family pietàs appeared to be Rothermere’s motivation now. He offered Thomson £25 million for the Sunday Times but would knock £5 million off if the price of closing the deal meant that he had to buy The Times as well.49 This was ominous. Rothermere later stated:
I didn’t want The Times. I wanted the Sunday Times. What we wanted to do was somehow shunt off The Times where it would survive as a parish newspaper of the elite. So it would remain that way at a minimum loss situation because none of us could see how it could ever be made commercially viable.50