The History of the Times: The Murdoch Years. Graham Stewart

combined clerical payroll of its daily and Sunday rivals, the Guardian and the Observer, was 250. It was clear that TNL was grossly overmanned; indeed, it was the principal reason why a company capable of generating nearly £100 million a year in revenue was still so monumentally in the red. Murdoch was blunt with the staff: ‘You will say you have heard of Times crises before. I say to you here that if the crisis facing us today is not resolved within days rather than weeks our newspaper will have to be closed.’¹⁵⁰ Despite intense hostility to this ‘straight forward mugging’ from Barry Fitzpatrick, the father of the Sunday Times clerical chapel, and rumours that those doing management’s bidding by applying for voluntary redundancy would be blacked by their union brothers,¹⁵¹ negotiations to find the job cuts got underway with the more moderate union officials. It was another torturous exercise and, in the midst of it, Gray’s Inn Road was rocked by a second crisis.

      A meeting of the TNL board had been convened on 16 December 1981. In Murdoch’s absence, Long had taken the chair and, with Evans and Frank Giles present, won universal – if qualified – approval to remove The Times and Sunday Times titles trademarks from TNL to News International. The stated reason was that September’s NGA dispute had demonstrated that without this change The Times could not be published if the Sunday Times was liquidated. Transfering the titles to News International would give greater flexibility in future industrial disputes.¹⁵² Consent was agreed subject to ‘a reasonable price’ being paid for them. At a rushed TNL directors meeting held two days before Christmas at the Sun’s headquarters in Bouverie Street (with only Long, John Collier, the company’s secretary Peter Ekberg and Farrar’s lawyer, Geoffrey Richards, present) News International’s offer of £1 million for The Times and £2 million for the Sunday Times was accepted.¹⁵³

      The first Evans and Giles heard of the 23 December meeting and its decision to transfer the titles of the papers they edited was on 16 February 1982 when they were sent a copy of the minutes. They were horrified.¹⁵⁴ Why had they not been informed of the meeting? Why was it held at the Sun’s headquarters? The impression was clear: Murdoch’s henchmen had attempted to ‘pull a fast one’. But what was their motive? If TNL was liquidated while still in possession of its principal assets – the titles – it could be bought by another buyer. Evans approached Jim Sherwood of Sea Containers and encouraged him to buy The Times from Murdoch.¹⁵⁵ Murdoch promptly rebuffed Sherwood’s offer when it was sent to him on 9 February. Transferring the titles to News International would, wrote one chapel father (Peter Wilby), allow Murdoch to liquidate TNL and restart the papers at a later date with a more favourable set of union (or nonunion) staffing agreements.¹⁵⁶ This, and the rejection of the Sherwood offer, suggested that if Murdoch did not get the mass redundancy package accepted he really did intend to abolish TNL and relaunch the titles on his own terms, in his own time. It also placed a gun to the head of the unions in the negotiations over cutting six hundred jobs.

      Transferring the titles to News International ran counter to Sir Denis Hamilton’s strategy of ring-fencing Times Newspapers in the Articles of Association so that, as he put it, ‘in no way could it be mixed up with the operational or financial side of News International’.¹⁵⁷ But Evans and Giles could no longer appeal to Hamilton who, seeing the way events were moving, had resigned as chairman of the company’s board of directors. The new chairman was none other than Keith Rupert Murdoch. All of a sudden, it seemed Murdoch was doing to Times Newspapers what he had done to the News of the World chairman, Sir William Carr – arriving in the guise of a financial white knight, only to seize the keys to the castle. Yet, was it not inevitable that the person paying the bills also wanted outright control of the company? The only prop keeping TNL on its feet was the money being pumped into it by News International. As Richard Searby, chairman of the parent News Corporation, bluntly put it, ownership of the titles was the security it needed if it was to continue backrolling this liability.¹⁵⁸ The City reacted to the news by wiping £4 million from News International’s stock market value.

      There were two problems with this strategy. First, if Murdoch attempted to close TNL and relaunch The Times in a manner that displeased the print unions they could strike at Bouverie Street, bringing down the Sun and the News of the World, the two sure cash cows that contributed most to keeping his media empire afloat. Secondly, the titles transfer appeared to be illegal under point 2 (iii) of the terms set out by John Biffen unless the board of independent directors’ gave their approval, a detail overlooked in the hastily convened and inquorate TNL meeting of 23 December. Biffen had stipulated that a fine or two years imprisonment would apply to Murdoch if he broke the conditions upon which his purchase of TNL had been granted. This included changing the Articles of Association without consent. The Times NUJ chapel pressed for the transferral to be disallowed, threatening if necessary to seek a High Court injunction.¹⁵⁹ Rees-Mogg added his voice to the controversy, writing to Biffen and denouncing the attempted titles shift on the BBC’s The World This Weekend. The independent directors also waded in, Lord Dacre describing it as a ‘gross incivility … the Proprietor met the national directors on January 12 and said nothing about it’ while Lord Greene at least struck a supportive note for the newspaper’s reporting of the fracas by claiming ‘All I know about it is what is in The Times.’¹⁶⁰ Evans had certainly ensured that his paper could not be faulted when it came to washing its owner’s dirty linen on both front and back pages. Even if Murdoch’s exact motives were unclear, the manner in which Long had acted created a suspicion of shadiness. The Shadow Trade Minister, John Smith, complained that Murdoch was attempting ‘a breathtaking subterfuge, which raises very serious questions about his future intentions for both newspapers’.¹⁶¹ The Conservative former Cabinet minister Geoffrey Rippon asked Mrs Thatcher to consider establishing an enquiry.

      Murdoch, Searby and Long had miscalculated. Talks with Department of Trade officials indicated the transfer was probably illegal. Searby got to work on preparing a dignified retreat. The decision to transfer was reversed pending a meeting of the Times board of independent directors who duly made clear their opposition to the plan, killing it there and then.¹⁶² Meanwhile, the deadline for achieving the six hundred redundancies had been reached. But when the requests for voluntary redundancy were counted they numbered scarcely more than one hundred and fifty. Murdoch flew back to London.

      For ten hours, the unions and management tried to reach agreement, but the gulf remained too wide. Murdoch announced that 210 clerical workers would be sacked on a last in first out basis if the number of voluntary redundancies did not rise commensurately. The unions replied by issuing a joint statement, making clear they did ‘not accept the mandatory notices’ that were due to be sent out the following morning. The mood at a meeting of NATSOPA clerical workers on 24 February was firmly defiant. In the Spectator, the cartoonist Michael Heath drew an egg timer with the words The Times on it – the sand had almost run out.¹⁶³

      At such a moment it would have been helpful if the editor and the proprietor could have managed the pretence of a united front. Evans tried to woo Murdoch by telling him what he wanted to hear but the latter cold-shouldered him.¹⁶⁴ Back on 10 February, the Guardian had reported rumours that Evans’s future had been discussed at a meeting of Times Newspapers’ board of directors. Had this been true (it was not) it would have narrowed the ‘mole’ down to those seated around the boardroom table. Murdoch was quick to deny the story, issuing a statement