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Channel Ten's voluntary administration: Staff 'genuinely worried'

Employees at the embattled broadcaster fear for their future.

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When the newspapers disappeared from Ten's newsrooms, staff were baffled. Then someone carted away the printers, leaving one for shared use. The final straw was the apparent cancellation of fuel cards, used by camera operators. 

"People were in tears," says one employee of the troubled network, which was placed into voluntary administration on Wednesday. 

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Joking that the power had gone off at Network Ten, Pete Helliar comments on the financial woes of the company, while fix-up advice comes from Twitter.

"This isn't a normal redundancy round. Our company is in administration. We're genuinely worried about our futures."

Another worker said: "If they offer a package, I'll be the first to take one. I suspect there'll be a rush for the exits."

Fairfax Media understands a glitch caused some fuel cards to stop working and the company is fixing this. Staff in some states say papers are being delivered as normal. Others report their newsroom printers remain undisturbed. 

Still, it's a measure of concern that Ten insiders not only insist upon anonymity – they don't want their city to be mentioned, lest their bosses identify them.

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To be fair, some say they're coping with the turmoil. One points out that Ten ultimately emerged from its 1990 administration with renewed vigour. Another says: "It really is business as usual. Nothing's changed, day-to-day, in the way I do my job."

Most of the distress appears to come from Ten's newsrooms, across the major capital cities. Many fear it's only a matter of time before management takes an axe to its flagship 5pm news bulletins

Feeding this belief are reports that Ten's "transformation and growth" project, Blue Horizon, is aiming to add $50 million to earnings in the 2017/18 financial year. And possibly $80 million by the following year.

"My question to management is this: how can we [achieve this] without cutting staff?" one source asks. 

Multiple employees believe Ten is considering replacing its state-based Eyewitness News with a national bulletin, to be produced by Sky News.

On Wednesday, Ten chief executive Paul Anderson told staff that no redundancies are planned.

It feels like millionaires and billionaires are controlling our lives, and we're just the chess pieces.

Ten Network employee

After his company-wide video address, he took questions. But some outside Sydney claim they had no capacity to reach him.

"We're a TV station, for crying out loud," says a source. "Surely we have the equipment and know-how to arrange a phone hook-up?"

Anderson is said to have rejected rumours a Sky News representative had visited Ten's offices last week.

"No one expects management to spell out their plans in detail," one worker insists. "But if redundancies are an option – even if they're not locked in yet – at least be honest about that."

"Am I sailing this ship until they decide it's over?" another says. "I guarantee you, if they suddenly turn around and say, 'We're going with Sky News,' a lot of us won't even come to work the next day. 

"It feels like millionaires and billionaires are controlling our lives, and we're just the chess pieces.

"I literally type 'Network Ten' into Google, then hit 'News', to find out what's going on."

Complicating matters is the relationship between Ten and News Corp. Sky News is entirely owned by News Corp. Its channels are available on subscription TV provider Foxtel, which is half-owned by News Corp. 

Lachlan Murdoch has a 7.5 per cent stake in Ten, and used to be acting CEO and chair of the company. Now, he's co-chair of News Corp and US studio 21st Century Fox.

On Sunday, the Financial Review reported that Murdoch and Bruce Gordon, another of Ten's billionaire backers, would not guarantee a new $250 million loan for the broadcaster. (James Packer is believed to be keen to sell his stake.)

Ten currently spends an estimated $120 million a year on content from CBS – and 21st Century Fox. Naturally, it wants to reduce the cost of these studio deals.

Fairfax Media's Elizabeth Knight says Murdoch "appears to be negotiating with himself – or has a foot in many camps."

And it's possible that Murdoch and Gordon could convert their debt into equity, thus taking ownership of Ten

"I'd be shocked if the Murdoch empire doesn't benefit, somehow, from what happens next," says a source. 

"How tempted must they be to cut Ten's [internally resourced] news, and replace it with Sky?"

Some believe Ten could retain its Eyewitness News branding, while replacing state-based bulletins with a national Sky service. A high-profile newsreader, such as Sandra Sully, would be the likely presenter

Other options include Ten making a cheaper national bulletin in-house – or even keeping its local weeknight bulletins, while trimming staff and resources. (Already, Ten airs national bulletins on weekends. These draw substantially smaller audiences than its weeknight news.)

Whether Ten does a deal with Sky, or produces its own national program, local news "windows" are a possibility. 

A "north-south news model", reflecting the different needs of NSW and Victoria, is also being considered according to the Financial Review. Sky News executive editor Rob Raschke is rumoured to have made a pitch to Ten last week.

"I hate to say it, but we're already half-way towards a national bulletin," says one newsroom insider. "Look at how many staff we've lost in the past few years. They already try to share as many stories [across state bulletins] as they can."

On Thursday, Studio 10 co-host Sarah Harris made an impassioned please to "Bill Shorten, Pauline Hanson, and the Greens party" to pass media reforms.

Ten declined to comment. But in April, Anderson told Fairfax Media that having a news bulletin in every market is important.

"Over the years, Ten has toyed with various models," he said. "I think the last time we changed our news, everyone said it wouldn't work. [But] we are doing it a whole lot cheaper than we did before, and effectively have ... the same ratings and the same revenue.

"In this day and age, everything needs to be looked at in terms of doing it differently."

Anderson denied reporters routinely do unpaid overtime, and said he can "rule out" Ten eliminating news altogether. 

"All I would say is that whether it's Sky, or anyone else, we wouldn't comment on that – other than to say news is an extremely valuable part of our schedule. We get that."

While administrators plan their next moves, staff worry about the future – and reminisce about the glory days of Eyewitness News

"Our news used to be No. 1," recalls one veteran. 

"It was the pride of the network. Even in recent years, [we] felt we had a more collegiate atmosphere than Seven or Nine. People loved working [here]. Realising where we're at now ... we're just deflated.

"Business as usual? Not for us."

Twitter: @Michael_Lallo

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