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NEW! Detroit News Guild
Bargaining Bulletin No. 2 (12/14/06)
NEW! Detroit News Guild
Bargaining Bulletin No. 1 (12/07/06)
FAQ's About the Guild Pension Plan for News Editorial Staff
Message to News Editorial Staff Members
Detroit
News Guild Contract 2003-2007 (Link will open in a new window)
Printable
Detroit News Guild Contract (.pdf format) (Right-click on the link and select "Save target as...")
A Message For Detroit News Non-Members
December 14, 2006
DETROIT NEWS GUILD BARGAINING BULLETIN
NO. 2
The Guild had its second bargaining session with the Company on Monday,
December 11. No MediaNews Group or Detroit News editorial executives
were present, just like the first meeting. We pursued a detailed discussion
and exploration of our proposals and the Company's proposed contract
concessions. (See the December 7 Bulletin)
Layoffs by Seniority
The Company proposes to exempt many positions, full and part-time,
from the contract clause requiring layoffs by seniority. We asked
who and which positions would be exempt. The Company said it could
include full or part-time investigative reporters, project reporters,
specialty writers, critics, anyone who writes one column per week,
web producers, page designers and others.
The Guild's position is that the proposal is extremely vague and
would effectively eliminate seniority. Seniority is an important contract
principle, and seniority must be very carefully defined. Otherwise,
the Company can retain the most recently hired employee in any classification
and layoff people with many years of service. The Guild requested
a detailed description and list of people or positions exempt from
layoff.
Union Information Requests
We continued to seek information regarding the Company's proposed
concessions on eliminating daily overtime, retaining part-time employees
while laying off full-timers, eliminating severance pay for terminated
employees, etc. The Company said it was still compiling the information
we need.
The Guild wants to know the rationale for the proposed concessions,
the amount of savings the Company is seeking on each concession and
the effect on employees' earnings.
Reasons for Concession Demands from Company
The Guild pursued the question of why the Company is seeking contract
concessions and how much. We spent a lot of time on this fundamental
issue. The Guild laid out several principles regarding "concession
bargaining".
- Financial context
Most concession bargaining occurs with financially distressed
employers. The Company has provided no information indicating financial
distress. The Company simply states that newspaper companies have
been sold or broken up, the economy is bad, some advertisers have
pulled out, advertising is down, and a Time magazine article indicated
that newspapers have no future. At the same time, the Company is
not pleading poverty; it is not saying it cannot afford to maintain
the current pay and benefits. The Guild's position is that in the
absence of detailed financial information - the specific impact
of the economic factors on this employer - it is extremely difficult
if not impossible to agree that concessions are warranted.
- Lack of priorities
In concession bargaining, employers usually make it
clear what their real and legitimate needs are, with a clear indication
of priority. The Company has not done that. It has demanded concessions
across the board, on health care, wages, overtime and other items.
The Company wants it all. In the absence of financial information
on the impact of each concession, and some understanding of the
priority, it is not clear why the Guild and the employees should
be required to give up pay and benefits.
- Shared sacrifice
When asked for concessions, unions want to know whether
the pay and benefits of non-represented employees are being reduced
also. They want to know that concessions in a 3-year collective
bargaining agreement are not just used to improve the pay, bonuses,
benefits and working conditions of supervisors and managers. This
is the Guild's view.
Guild Position
We informed the Company that these issues regarding the overall
context of concession bargaining must be addressed. Otherwise, the
Guild has no option but to assume that the Company can afford a good
contract. This is especially true in light of fact that MediaNews
Group obviously thought Detroit was a good investment when it purchased
The Detroit News. MediaNews' partner in Detroit, Gannett, also thinks
Detroit is a sound investment. Business Week reports that Ed
Walczak, of Vontobel Asset Management, has acquired a 2% stake in
Gannett, which now owns 95% of the Detroit operation. He is a "Warren
Buffett-style value investor". Walczak obviously sees a future
in newspapers, including Detroit.
For all these reasons and more, the Guild is resisting the Company's
demands for concessions laid out in the December 7 Bulletin.
We will be scheduling additional bargaining sessions, probably after
the holidays. We will keep you posted.
HAVE A GOOD HOLIDAY SEASON.
GUILD DETROIT NEWS BARGAINING COMMITTEE
Christine MacDonald, Unit Chairperson; Maureen Feighan, Santiago
Esparza, Susan Whitall, Robin Buckson, Lou Mleczko, President
Local 34022, Duane Ice, Guild attorney.
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December 7, 2006
DETROIT NEWS GUILD BARGAINING BULLETIN
NO. 1
The Guild held its first bargaining session with the Detroit News
on Tuesday, December 5. We are bargaining a new collective bargaining
agreement to replace the one expiring on January 14. The Guild News
committee includes Unit Chairperson Christine MacDonald, Maureen Feighan,
Santiago Esparza, Susan Whitall, Robin Buckson, Local 22 President
Lou Mleczko and Attorney Duane Ice. Company negotiators are Gannett's
John Jaske, Kristi Bowden, V.P. Human Resources for Detroit Newspapers
and Kirsten Starkey, Employee Relations Detroit Newspapers. There
were no editorial executives from the News.
The Guild presented its initial contract proposals and reviewed initial
proposals from the Company. The Company is proposing that employees
take concessions in their current wages and benefits.
Company Concession Proposals
Among the changes the Company wants in the Guild contract include:
- Eliminate daily overtime
- Allow full time employees to be laid off while keeping
part-time employees
- Establish separate seniority lists and layoff rights for
columnists, "specialty writers," page designers and web
producers
- Eliminate severance pay for any terminated employee
- Company to issue paychecks every two weeks instead of weekly
- Eliminate union security
The Company repeated the economic claims that it made in every bargaining
session with every union. It claimed that its financial condition
and the decline in the Michigan economy warranted concessions. The
Guild requested information concerning each concession sought by the
Company - how much did the item cost last year, how much would the
Company save, how much is the Company requesting that employees give
back, and what would the concessions contribute to the Company's financial
picture. The Company said it had not calculated the cost of its proposals
and had no specific data to support the concessions. The Company admitted
that it was profitable and was not pleading poverty. If it did, it
would have to open its books.
These concessions are in addition to the significant concessions
the Company is demanding regarding health benefits for active
and retired employees. As the Council of Unions reported last week,
the Company is demanding: higher monthly employee payments for health
insurance premiums; annual deductibles for medical services - $250
single, $500 family; higher drug co-pays; higher co-pays for office
visits, emergency room, urgent care and hospital admission. They also
want to eliminate HAP for retirees and reduce the monthly Company
contribution from $267 to $182.
For most News employees, the monthly health bill would surge to 20%
of the premium cost with co-payments increasing by 2.5% annually.
The bottom line is employees earn less pay but would pay more for
worse benefits.
Guild Proposals
The Guild made a small number of modest proposals including:
- Continue existing health benefits and cap current employee
co-payments
- Across-the-board wage increases to help meet the cost of
living
- Merit pay over and above annual increases
- 5% shift differential for any employee starting work after
4 p.m. or before 7 a.m
- Mileage allowance based on IRS rate, adjusted annually.
- Part-time employees eligible for insurance benefits after
22.5 hours per week
- Add three paid personal days to existing seven paid sick
days
- Update job classifications and pay grades
- Add sexual orientation to Non-Discrimination clause.
Guild Position
The Guild is going to oppose the concessions the Company is seeking
in a new contract. We have serious concerns about the Company proposal
to circumvent the seniority/layoff language for columnists, specialty
writers, web producers and page designers. We question, for example,
why a reporter covering the auto industry should have a separate seniority
from other reporters. The Company proposal is vague and not defined.
We pointed out that the Company is asking employees to do more,
while demanding that they work for less take-home pay and worse benefits.
At the same time, the Company wants to eliminate contract language
which is key to job security. That is not a formula for a satisfied,
productive work force.
In the meantime, we need you to be involved. Stay informed of what
is happening in this round of bargaining and make sure your colleagues
are aware of the issues.
The next News bargaining session is December 11. We will keep you
posted. Thank you for your support.
GUILD DETROIT NEWS BARGAINING COMMITTEE
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August 19, 2005
FAQ'S ABOUT THE GUILD PENSION PLAN FOR NEWS EDITORIAL
STAFF
"You are very fortunate…you have a pension" -
Charles Kamen, MediaNews V.P. Human Resources
Fortunate indeed! News staffers covered by the Guild contract have
a defined benefit pension plan. Here are some Frequently Asked Questions
about our Guild pension plan.
What is a defined benefit pension plan?
Unlike 401-K's, the Guild defined benefit pension plan provides
specific retirement benefits determined by a formula based on an
employee's years of service, the company's contribution rate and
the participant's age. At the News, you are covered by The Newspaper
Guild International Pension Fund (TNGIPF). Currently, 36 newspapers
under Guild contract participate in the plan covering more than
5,300 employees. There are more than 800 pensioners and beneficiaries
who are now receiving monthly benefits.
What does the Detroit News pay into the plan? When are you
eligible to receive benefits? What is the normal retirement age?
For full-time employees, the Guild contract requires the News to
pay $45.30 per week into the TNGIPF. Eligible part-time employees
receive a pro-rated amount. This money is a combination of funds
from the News and from wage diversions approved by Guild members
at the News. After five years of employment, employees are vested
in the plan and become eligible for retirement benefits. Normal
retirement age is 65 but earlier benefits can be drawn at reduced
amounts. If you move to another newspaper participating in the TNGIPF,
you can transfer your vesting credits to that employer. News employees
have participated in this plan since 1976.
Do you have to be a Guild member to participate in the plan?
No. Editorial employees working in the Guild's jurisdiction are
covered by the TNGIPF regardless of union membership status. However,
only Guild members can vote on pension improvements such as wage
diversions or contract negotiated changes. The more members we have,
the better opportunity we have to maintain and improve the benefits.
Without the Guild, the company would be free to eliminate this important
benefit. So, don't be a "free rider." Help support the
Guild in representing you.
Who handles plan investments? How are they doing?
The TNGIPF is a jointly-managed multi-employer defined benefit pension
plan with both the Guild and management having an equal voice on
the Board of Trustees. Union trustees are: Linda Foley, TNG-CWA
President; Bernie Lunzer, TNG-CWA Secretary-Treasurer; Jim Schaufenbil,
TNG-CWA Sector Representative. Employer trustees are: Timothy J.
Kelleher (retired v.p.labor relations Detroit Newspapers); Missy
Miller, Human Resources Director Denver Newspaper Agency; Sharon
Ciechon, Human Resources Director for the Manchester Union Leader.
As of March 31, 2005, 55% of the fund assets were in equities; 36.37%
bonds, 9% real estate and less than 1% cash. Assets exceed $81 million.
Fund's annual investment return for past 10 years has averaged 8.54%.
MFS Institutional Investors and NWQ Investment Advisors manage both
equity and fixed income accounts; TransAmerica manages large capitalization
growth equity; Dreyfuss manages the Fund's small capitalization
stock account. The AFL-CIO Housing Investment Trust and MEPT handle
the two real estate portfolios. Unlike 401-K plans, the TNGIPF benefits
are insured by a U.S. government agency called the Pension Benefit
Guaranty Corp.
Who do I contact about how much I am entitled to at retirement?
For further information about your benefit, contact Guild Administrator
Scott Bush at this toll-free number: 1-888-893-3650. Copies of the
TNGIPF plan features are available at the Detroit Guild office.
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Dear News Editorial Staff Member:
On Aug. 3, 2005, one of the most dramatic events in the modern
history of Detroit newspapers took place with the announcement of
new owners for the Detroit News and the Detroit Free Press. Overnight,
the editorial staffs of these two newspapers were working for new
corporate entities. Gannett, which bought the Free Press from the
departing Knight Ridder, promptly removed the publisher and managing
editor and replaced them with new officers. MediaNews, which bought
the Detroit News, also changed publishers.
The length of the Joint Operating Agreement (JOA) was shortened;
the profit split was rewritten; publication times and dates were
revised. Properties were traded. The only constant in this traumatic
change of events for employees was the Guild contract. All of the
terms and conditions that spell out employee wages, benefits and
work rules remained the same. The new owners at both papers assumed
the Guild contracts. The result was that, for the time being, business
as usual for employees working in the Guild's jurisdiction.
But these contracts aren't automatic, and the benefits they afford
you could disappear without your support. The more members the Guild
has, the better our chances to maintain the benefits you now have
and to improve on them. That is why I am asking you to join the
union.
Without a union contract, the company is free to change your work
hours, overtime and sick leave provisions. It can drop your defined
benefit pension plan. The comprehensive health insurance coverage
could disappear. The company wouldn't need to show just cause for
disciplining or discharging you. Like your management supervisors,
you would be on your own without any contractual protection.
Gannett and Knight Ridder showed on Aug. 3rd that their only loyalty
was to their stockholders. There was no corporate loyalty for Detroit
News and Free Press employees. The only entity that was standing
there for you was and is the Guild. However, we are only as strong
as the number of dues paying members we have. If you want to continue
having the protections of a contract and to have a voice in your
future, please sign a Guild card today. I have enclosed a membership
card, dues check-off card and a stamped, self-addressed envelope
for your convenience. If you have any questions, please contact
the Guild at: 313-963-4254; e-mail lou@detroitguild22.com.
Fraternally,
Louis J. Mleczko
President, Local 34022
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A Message For Detroit News Non-Members
The Newspaper Guild of Detroit invites you to join your union,
Local 34022, and share in the benefits and responsibilities of membership.
The dedication and efforts of members of Local 34022 are the reason
you enjoy certain benefits and rights at the News. Job security,
paid health insurance, severance pay – all of these things and more
came as the result of a collective bargaining agreement the local
negotiated with the newspaper’s owners.
In today’s business climate, only the continued strong existence
of The Guild allows you and your coworkers to have these benefits.
Companies such as Gannett, Knight-Ridder and others that answer
to Wall Street rather than to newspaper readers and advertisers
would gladly take money from you to pay their shareholders.
Without a union, what would working conditions be like at the News?
Perhaps you have worked at non-union newspapers elsewhere, so you
know how people can be fired without just cause, how salaries and
benefits can be changed at the owner’s whim, how personality conflicts
with a supervisor can make your work life miserable.
On the other hand, because of its contractual relationship with
its employees, the News must offer you guaranteed wages and increases,
health insurance paid for by the company, severance pay and a grievance
procedure that allows employees to fight unjust disciplinary action
or right other wrongs in the workplace, among other things. In addition,
the company pays into The Newspaper Guild’s International Pension
Plan in order to provide its employees retirement benefits, which
the employees supplement with additional funding.
We are a democratic organization where rank-and-file members, including
many of your coworkers, call the shots. The contract applies to
all employees in the bargaining unit – but only members may participate
in negotiations and only members are eligible to vote for or against
a contract. Membership gives you a voice in your workplace.
The Guild’s ability to bargain and service the contract depends
entirely on the dues paid by Guild members. A strong, united active
membership is the key to maintaining and improving wages and benefits
in future contracts.
To remain strong, The Guild needs your support. Join the union
today. Just fill out the membership application card and the dues
checkoff card (this allows the paper to automatically deduct your
dues from your paycheck and saves you the trouble of having to mail
or hand-deliver your dues each month) and give them to your steward
or unit officer. They are listed on the Guild bulletin boards found
in your department.
If you have any questions, please call Lou Mleczko, Local 34022
president, at (313) 963-4254, or e-mail him at lou@detroitguild22.com.
Or contact any of the unit officers or your steward. Also, take
a moment to check out our web site, www.detroitguild22.com,
to learn more about us.
We look forward to you becoming an active member, interested in
having a say in your work life.
In solidarity,
Newspaper Guild of Detroit
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