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Tesco is looking to cut long-term staff's wages in a big way

The supermarket giant is seeking to place all staff of greater than 20 years service on new, vastly-reduced, contracts.

Tesco Stores Shops Rollingnews.ie Rollingnews.ie

TESCO IRELAND IS to ask all staff who have been with the company for more than 20 years to sign up to new contracts in a series of new personnel moves.

The company, which has been locked in a battle with Super Valu for top spot in the Irish supermarket wars for some time, is asking all staff who have been working there since before 1996 to sign up to contracts for greatly-reduced pay.

Specifically, the new contracts will see affected staff being paid up to €3 less per hour than they are earning at present according to some of those affected.

The retailer confirmed to TheJournal.ie this evening that it is in the process of redrafting the contracts of its workers with the longest service, saying that the “pre-1996 contract doesn’t meet the needs of today’s customers”.

The company argues that the current contracts that long-term employees are on were negotiated at a time when stores didn’t open on Sundays or late nights.

“We have today briefed colleagues that we are entering into discussions with trade unions with a view to moving colleagues from the pre-1996 contract to our modern contract which we agreed with trade unions in 2006 and covers the majority of our colleagues,” the company said in a statement.

We hope to commence discussions with trade unions immediately.

The measures being proposed will not affect those at management level who have worked for the company for a similar period of time, however.

Tesco says that the differences in the new rates of pay will be offset by compensation for those moving to new contracts.

We will work out the details of the compensation for loss of earnings in the coming weeks.
The modern contract offers market leading rates of pay and benefits.

Roughly 6% of Tesco’s Irish workforce comprises workers with greater than 20 years service.

Mandate

A spokesman for the Tesco workers’ union, Mandate, confirmed to TheJournal.ie that new contracts are to be offered to long-term staff.

“It’s all true – there’s a whole range of different issues that are being touched upon, but huge cuts in pay and no Christmas bonus for long-term staff are two of them,” he said.

dave lewis Tesco CEO Dave Lewis Youtube Youtube

Mandate have written to Tesco demanding that they engage with the union over these new contracts.

“It’s a remarkable way to be treating loyal staff,” said the Mandate spokesman.

Tesco is still the most successful and most profitable supermarket in the country – this is a new way of doing business for them.
Normally we have agreements with them. Our message now is clear – we don’t believe that this should go ahead without negotiation.
We want them to negotiate with us and to stop dealing in this heavy-handed manner.

Unpopular

It is not the first unpopular move the retail giant has made towards Irish employees – last May the company’s Christmas bonus, which typically stood at about €250, was cancelled for all employees with less than 20 years service.

Tesco confirmed to TheJournal.ie this evening that such bonuses are no longer paid to any staff.

That move was made, according to the company, due to “competitive market conditions”.

The “market conditions” being referenced were the company posting its biggest ever financial loss last April – an enormous €9.37 billion.

Mandate suggest that if the new contracts do come in in their suggested guise it may lead to a raft of early-retirements.

Read: These are the supermarkets that won and lost in the Christmas showdown

Read: Investors are worried that iPhone sales have finally reached their limit

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220 Comments
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    Mute Lurfic
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    Nov 23rd 2016, 11:10 PM

    I know a lot of people will scoff at this (who cares etc) but I for one thoroughly enjoyed rte’s kids shows when I was young. I know the tv landscape is different now, but I still think this is a shame.

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    Mute Hugh Mannatee
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    Nov 23rd 2016, 11:16 PM

    Fortycoats was savage telly. I heard that Slightly Bonkers is an Rte exec now, or married to one.

    236
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    Mute Bairéid Rísteard
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    Nov 23rd 2016, 11:53 PM

    Bosco was great show, cheesey as it was.

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    Mute Ben Frost
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    Nov 24th 2016, 12:42 AM

    That’s because you had 2 channels to pick from at the time. You didn’t have a choice but to watch them.

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    Mute Lurfic
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    Nov 24th 2016, 8:54 AM

    I know Ben, but we were happy watching them all the same.

    52
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    Mute Deborah Behan
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    Nov 24th 2016, 10:20 AM

    Preferred Bosco to Playschool on BBC!

    20
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    Mute Mrs M
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    Nov 24th 2016, 9:31 PM

    Most young people watch YouTube, Netflix, online content , or they are glued to their smart phone not to mention the hundreds of digital channels to choose from, younger people are more sophisticated a sock puppet in a box & a magic door doesn’t cut it anymore !

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    Mute George White
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    Nov 25th 2016, 8:36 AM

    @Hugh Mannatee:The first one was Mrs. Burgess in the Snapper.

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    Mute Tony Mcgrath
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    Nov 23rd 2016, 11:14 PM

    Cut the huge salaries tubs.darcy o callaghan finucane Duffy etc.and keep the children’s programme’s.

    444
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    Mute fiachra29
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    Nov 23rd 2016, 11:20 PM

    Remember when Pat Kenny went to UTV and all the media were saying how big a coup it was, how he would draw in the audiences, how did that turn out?

    These deluded eejits think their big salaries are justified because they’re irreplaceable and a big draw, most of RTÉs big names are wooden and charmless and wouldn’t be missed.

    371
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    Mute RiainOg
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    Nov 23rd 2016, 11:46 PM

    Demographics play a big, big part in it, RTE is the mainstay for alot of the mid to older generations, radio and television combined. Its not the presenter or producer, its the generations growing up on what station the parents and grandparents watched or listened to. RTE are continually focused on keeping the return customer, but are slowly realizing that the younger generation are well ahead of traditional products that they offer. It will in time catch up and will have all programs independently produced. Then we will have value for money, – the licence fee going to costs of production as opposed to the cost of salary of presenters.

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    Mute Nick Allen
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    Nov 24th 2016, 12:04 AM

    @Tony Mcgrath:

    Great idea, that will bring in the advertisement revenues alright

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    Mute tally ho
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    Nov 24th 2016, 8:29 AM

    Except for Zig and Zag

    1
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    Mute Paul Mc
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    Nov 23rd 2016, 11:10 PM

    It would make you wonder where all the license money goes. Oh I forgot it goes towards RTEs staffs paltry salaries and pensions.

    192
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    Mute Rochelle
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    Nov 23rd 2016, 11:53 PM

    Seemingly 12 million of it goes on the RTE concert orchestra. More than double what they spend on their entire internet presence.

    99
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    Mute Nick Allen
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    Nov 24th 2016, 12:05 AM

    @Paul Mc:

    Very small pensions. All the high earners are self employed

    24
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    Mute Screaming Toddy
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    Nov 24th 2016, 12:15 AM

    @Nick Allen: Don’t let facts get in the way of a blind rant.

    18
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    Mute The Guru
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    Nov 24th 2016, 12:50 AM

    Doesn’t RTE have a massive pension deficit?

    23
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    Mute Nick Allen
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    Nov 24th 2016, 2:33 AM

    Screaming

    I don’t but obviously you do. What a stupid post.

    3
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    Mute Martin Bonner
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    Nov 24th 2016, 6:33 AM

    We are a country that is obsessed with what other people earn.

    Be it public sector workers, RTE, you name it.

    I couldn’t be arsed what others earn, only what I can earn for my family.

    32
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    Mute Ted Logan
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    Nov 24th 2016, 6:48 AM

    Well when we are paying their salaries via taxes and tv licences I think we have every right to be interested in what they are paid and asking are we getting value for our money.

    Because at the end of the day that does impact what you earn for your family.

    60
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    Mute Screaming Toddy
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    Nov 24th 2016, 9:11 AM

    That’s me told Nick Allen. Stupid is as stupid does

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    Mute Jason Ebbs
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    Nov 24th 2016, 9:12 AM

    @ Ted Logan. Explain how RTE staff (me) are getting paid our wages through your taxes ??? I get paid by RTE, RTE isn’t public sector, I don’t get paid by the government. Also a little FYI, the licence fee money doesn’t go towards paying anyone’s wages in RTE, it can’t !!!

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    Mute Breda Jennings
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    Nov 23rd 2016, 11:16 PM

    Sickens me to pay the tv licence for the utter shite that’s on RTE 1, the only good programmes it puts on are repeats of Only Fools and Horses, and Fawlty Towers. As for Network 2 , that died a death a long time ago!

    115
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    Mute Nick Allen
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    Nov 24th 2016, 12:08 AM

    @Breda Jennings:

    Over 10% of the population watch the late late every week. Considering the competition for viewership on a Friday night from other stations that is a really impressive number

    21
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    Mute Nick Allen
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    Nov 24th 2016, 2:35 AM

    Love the red thumbs. Makes you wonder about people

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    Mute Breda Jennings
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    Nov 24th 2016, 7:22 AM

    True 10%, but again licence fee going to help pay the fee of ridiculous guests such as Katie Hopkins who should not be given any air time at all.

    19
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    Mute sheridan
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    Nov 24th 2016, 10:52 AM

    Glad to say I dont pay a penny towards Tubs salary anymore, a tv licence is not a thing I have had for years!

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    Mute canuckandgo
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    Nov 24th 2016, 2:01 PM

    People are di€ks Nick, people are di€ks.

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    Mute canuckandgo
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    Nov 24th 2016, 2:02 PM

    Why should we not hear what Katie Hopkins has to say Breda?

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    Mute Sean Buckley
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    Nov 24th 2016, 12:11 AM

    Darcy could do with being sent down the river too.

    87
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    Mute George McCarthy
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    Nov 23rd 2016, 11:22 PM

    Happy days watching pajo’s jukebox on sat morning
    …and of course zig and zag, Bosco etc

    84
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    Mute Marie Gunbay
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    Nov 23rd 2016, 11:25 PM

    Oh no couldn’t stand Bosco the whinging voice drove me nuts

    57
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    Mute Suzie Sunshine
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    Nov 23rd 2016, 11:31 PM

    loved Bosco !

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    Mute Marie Gunbay
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    Nov 24th 2016, 7:40 AM

    @Suzie Sunshine: Did you really Suzie I guess if we all liked the same things it would be boring….wanderly wagon was another one ugh but my brothers loved it

    5
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    Mute James Keogh
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    Nov 24th 2016, 12:34 AM

    RTE have an apparent select number of regulars who they wheel in and out of radio and TV programmes. These particular presenters don’t come cheaply and present in the same ol’ same ol’ fashion all the time, they are Tiresome boring and one trick ponies who are past their stale date. Perhaps RTE should consider importing adult programmes before altering the children’s schedule.

    80
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    Mute Larry Doyle
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    Nov 24th 2016, 12:27 AM

    Hopefully this move will mean the end of the godawful Late Late Toy Show with all those creepy dancing children with Vaseline on their teeth.

    64
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    Mute Poole Hyde
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    Nov 24th 2016, 12:30 AM

    Never got that. As a kid I hated the singing and dancing. Kids really hate watching “talented” kids strut their stuff.

    74
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    Mute Rochelle
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    Nov 23rd 2016, 11:47 PM

    They made plenty of stuff I really enjoyed as a child so its sad to see this door closed on RTE. Besides from the Den and its characters I actually liked the Disney Club, Echo Island, Stream and Creature Feature.

    Childrens programming and Sports coverage were the two things I’ve felt RTE always did very well and it’s poor indictment of the organisation that these would be the first things to be scrapped in difficult times. You wonder what sort of sense it makes for their long term ambitions to double down their resources on the over 50 audience and let everyone else feck off to the internet.

    60
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    Mute sparky
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    Nov 23rd 2016, 11:23 PM

    I don’t pay the license fee. I never watch it, they have all the advertising Tv3 and Utv Ireland, have but hey it’s a level playing field.

    56
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    Mute Nick Allen
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    Nov 24th 2016, 12:10 AM

    @sparky:

    Its not a level playing field. Educate yourself a little about what RTE must do before posting BS

    24
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    Mute Screaming Toddy
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    Nov 24th 2016, 12:16 AM

    @sparky: You don’t pay so who cares what you think.

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    Mute sparky
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    Nov 24th 2016, 12:28 AM

    @ Nick Allen. what’s your point..I must educate myself on the advertising RTE receive. or my ” tongue in cheek comment”

    27
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    Mute Poole Hyde
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    Nov 24th 2016, 12:28 AM

    Sparky, you might not pay for the license but you still pay in other ways. For example it costs 20 million a year in general taxation to administer the collection of the license fee and about the same to cover the inspectors. Not to mention what it costs the state to prosecute non payment. Like it or lump it you’re paying even if you’re not paying.

    28
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    Mute sparky
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    Nov 24th 2016, 12:30 AM

    @Screaming Toddy. I don’t care who thinks what I think but do I care what you think because you “pay”..probably not..

    5
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    Mute sparky
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    Nov 24th 2016, 12:32 AM

    @Poole Hyde. Well that means I’m only paying once…correct me if I’m wrong..are you paying twice.

    16
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    Mute Nick Allen
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    Nov 24th 2016, 2:38 AM

    Sparky

    To educate yourself about the facts before posting rubbish. RTÉ is not playing on a level playing field as they must make a certain amount of programmes in the Irish language and specifically cover rural issues that would not have a positive commercial business case

    7
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    Mute Nick Allen
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    Nov 24th 2016, 2:39 AM

    Sparky

    You are starting to sound a tad confused :)

    3
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    Mute Poole Hyde
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    Nov 24th 2016, 3:08 AM

    @Sparky. God no… I honestly have no need for RTE what so ever. Their news sucks, their feeble attempts at drama are laughable and don’t even get me started on their sports coverage. Technically though I don’t have a television by legal standards. The law is very clear in that you need a set capable of receiving television signals for general broadcast. I’ve a 40″ inch computer monitor I picked up for 300 euro and stream content not “available for general broadcast”.Granted it’s sitting in the corner of the room like a conventional TV but they can kiss the back of my bollix if they think I’m paying a license for it. Nearly everything is either available through catch up/streaming services, Netflix/Prime or even on YouTube.I kept the receipt as well and it clearly states it’s a computer monitor.My 4g reception is even good enough not to need conventional broadband so happy days.

    19
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    Mute William Condon
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    Nov 24th 2016, 1:34 AM

    We will never see the likes of Kevin from Galway again.

    42
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    Mute eastsmer #IRExit
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    Nov 23rd 2016, 11:09 PM

    FFFGLAB mouthpiece, should be sold off

    39
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    Mute Greg Kelly
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    Nov 23rd 2016, 11:20 PM

    There’s a clever leftie there. Sell off the public broadcaster. Let me guess, to a private company that will be a mouthpiece for who?

    72
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    Mute Dave cullen
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    Nov 23rd 2016, 11:23 PM

    If it stops another Ray darcy getting through the net then so be it.Jaysus he’s worse than worse.

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    Mute sparky
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    Nov 23rd 2016, 11:28 PM

    @Greg Kelly. .sell it ta f#ck..won’t make a difference in my life.

    35
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    Mute John003
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    Nov 23rd 2016, 11:31 PM

    Why don’t they sell off RTE Radio2 and try to get dept of Gaelteach to take over TG4
    Then they would have enough money for children’s programmes

    29
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    Mute John003
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    Nov 23rd 2016, 11:33 PM

    Every current affairs programme has a SF politician they must live in Montrose

    29
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    Mute Sean Carmody
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    Nov 24th 2016, 12:40 AM

    @Dave cullen: The sad thing is, look who came after Ray-they had less of an impact, either down to not being good enough, or no charisma. Francie, Damien whatever his name was. They disappeared.
    But the first two presenters of the Den-Ian and Ray, they hung around. They had presence. Ian is still a favourite presenter of mine, tbh-both he has talent and presence on the radio.

    Ray used to have genuine talent-like, back in the days of The Den, Blackboard Jungle, Jo Maxi, his early footsteps in radio, etc. He was a genuine talent, his listenership would constantly prove a pain in the neck to RTE because he was a rival presenter they allowed to go to another station.
    But boy did he become an opinionated jerk.
    And a twittering fool at times- the PAmela Anderson/ Dean Strang interview, for example- that was painful, both times. I tuned in, on my tv for the Strang interview…shouldn’t have bothered, tbh. But the ‘JAck Nicholson interview’…that was horrific. And he didn’t take blame, he passed the buck, but the buck rested on his shoulders.

    God, he had so much potential…what happened?

    36
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    Mute eastsmer #IRExit
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    Nov 24th 2016, 4:14 AM

    @Greg Kelly: ‘Clever leftie’ ? No idea what that means, I am actually right handed…

    Yes, sell off the Montrose Bubble, the inflated salaries will disappear, the propaganda will be phased out

    8
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    Mute Ciarán Masterson
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    Nov 23rd 2016, 11:35 PM

    Children’s programmes will still be broadcast by RTÉ, they just won’t be produced by RTÉ. I doubt that children will notice the difference.

    32
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    Mute sparky
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    Nov 23rd 2016, 11:41 PM

    @ Ciaràn Masterson…no they probably won’t but who cares about our culture…

    20
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    Mute Ciarán Masterson
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    Nov 24th 2016, 12:04 AM

    @sparky:

    When Irish culture is mentioned, people usually think of novels and stage plays, e.g. The Playboy of the Western World, not children’s programmes.

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    Mute Screaming Toddy
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    Nov 24th 2016, 12:18 AM

    @sparky: Irish independent programme makers still exist and can make children’s TV so what are you on about.

    9
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    Mute sparky
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    Nov 24th 2016, 12:44 AM

    @ Ciaràn Masterson. How do you define culture…Glenroe played a big part in my cultural upbringing. .as it did in many of the Irish households. .

    12
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    Mute Ciarán Masterson
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    Nov 24th 2016, 12:49 AM

    @sparky:

    Of course, culture includes drama – on film, television and the stage – but my point still stands.

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    Mute sparky
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    Nov 24th 2016, 1:01 AM

    @ Ciaràn Masterson. .of course it does..but you have to remember but ‘maybe” you’re too young to remember when RTE is all us country folk had.

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    Mute Captain kirk
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    Nov 24th 2016, 5:10 AM

    Now all we need is for them to stop making TV programs for older people too

    23
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    Mute Magnus Diccus
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    Nov 24th 2016, 12:22 AM

    ‘member Jo Maxi?

    13
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    Mute David peate
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    Nov 24th 2016, 8:35 AM

    any chance they’d stop making any shows?? maybe fcuk off so we don’t have to pay for the tripe the force upon us ????

    11
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    Mute Anthony Horan
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    Nov 24th 2016, 6:29 AM

    This is disgraceful TV licences pay for content for all of the citizens of the country

    Bring back the den!!!

    10
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    Mute John Power
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    Nov 24th 2016, 8:19 AM

    tv license should be a bit cheaper now so

    10
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    Mute Unitedpeople
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    Nov 24th 2016, 5:51 AM

    So there goes another piece of a state asset, over to the private sector a bit more…

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    Mute sheridan
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    Nov 24th 2016, 10:47 AM

    More money to pay muppets like Tubridy instead!

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    Mute tally ho
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    Nov 24th 2016, 8:35 AM

    Another cost saver, out-source all foreign correspondent jobs. We have Rte reporters scattered far and wide. How many boiled eggs are consumed in Tokyo on a Wednesday morning? Over to our correspondent, camera and sound crew to find out??

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    Mute Donal Carey
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    Nov 24th 2016, 11:26 AM

    They could do us all a favour and stop making Tv shows altogether their is so much rubbish on the Irish channels . When RTÉ do have a good show it winds up on BBC the following year . The biggest waste of money every year is a Tv licence .

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    Mute Daz
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    Nov 25th 2016, 11:56 AM

    “independent production companies”… you mean like Miriam O’Callaghan’s? RTE and cronyism, jaysus I’m in shock

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    Mute Ron
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    Nov 24th 2016, 10:20 AM

    Snotser signing on now. Peaked when he roared ‘f*ck you, deputy Stagg!’. Or was that somebody else I’m thinking of?

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    Mute Frederick Burden
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    Nov 24th 2016, 9:34 AM

    Back when Mary Robinson used to be relevant.

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    Mute OCallaghan TP
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    Nov 24th 2016, 9:37 AM

    Good they were all crap

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    Mute Jimmy Berg
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    Nov 24th 2016, 9:41 AM

    Who needs it when minecraft youtube is all they watch.. :)

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    Mute Paddy Dunne
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    Nov 25th 2016, 7:42 AM

    What are we paying a to licence for

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    Mute O-'Seán #IRExit
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    Nov 24th 2016, 1:30 PM

    The point being the good kids shows are in the past,they were magic. Now rate should just go as if it wasnt for the sport itd just be fine.Gaels propaganda channel

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    Mute Val Martin
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    Nov 24th 2016, 6:20 PM

    No young person would want to listen their their dribble. I want radio lyric FM to be piped into prison cessl for 3 hours a day to prevent re- offending. Its all boring

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