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The Newspaper Guild of Detroit, Local 34022
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UPDATED 05/04/2007


 


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NEW! Free Press Guild Bargaining Bulletin No. 3 (05/04/07)
NEW! Free Press Guild Bargaining Bulletin No. 2 (12/14/06)
NEW! Free Press Guild Bargaining Bulletin No. 1 (12/07/06)
Free Press Reporter / Photographer Grievance
Free Press Staffers Get 2% Guild Raise Jan. 16th
FAQ's About the Guild Pension Plan for Free Press Editorial Staff
Free Press Guild Contract 2003-2007 (Link will open in a new window)
Printable Free Press Guild Contract (.pdf format) (Right-click on the link and select "Save target as...")
A Message For Non-Members at the Free Press


May 4, 2007

FREE PRESS GUILD BARGAINING BULLETIN NO. 3

The Guild and the other members of the Metropolitan Council of Newspaper Unions return to the bargaining table May 10-11th with the expectation that we are headed into a crucial round of negotiations with the Company. While we have resolved a number of contractual issues, there are still some key items pertaining to the Free Press Guild contract, which remain open including merit pay, sick leave, mileage, shift differential and pension benefits.

Merit Pay

Gannett remains adamant about having only a merit pay system without any across-the-board pay increases. At the April 19th bargaining session, the Guild told the Company that our review of current Free Press pay scales reveals that men make an average of $10,000 more per year than women. Men also receive 28 of the 40 top salaries. Conversely, 35 of the 50 people at the bottom of the pay scale were women. Company officials said such disparities reflect the previous Knight Ridder management and that merit pay will correct any gender shortcomings. We continue to press for some type of across-the-board raise while converting to a merit only system.

Sick Leave

Gannett is insisting on replacing the current Free Press sick leave with the same sick leave currently in the Detroit News contract. Under the Company proposal, employees would receive only seven paid sick days per year for occasional illness. After that, they would be eligible for Short Term Disability (STD) paid leave based on years of service to a maximum of 25 weeks. Before the STD would start, an employee could go five days without pay unless they had unused accrued sick days or vacation days. However, a young woman with only several years service at the Free Press, who goes on maternity leave, would only be eligible for 60% of their weekly pay to a maximum of 25 weeks. Currently, the STD at the News only provides for 100% pay only after six years of service. We proposed more paid occasional sick days and other options for covering the five-day gap before STD benefits begin.

Mileage

Gannett is currently proposing a mileage reimbursement of 33.5 cents per mile. The existing mileage rate of 32 cents per mile has remained unchanged since 1991. The Company has called its mileage reimbursement "very fair." We disagree. We gave numerous examples of other newspapers paying more mileage to employees.

Pensions

Gannett has remained hostile to increasing pension benefits despite the fact that the Free Press-Guild defined benefit pension plan is over-funded by about 36%. Since the plan is flush with cash, the Guild has proposed a modest increase in the benefit formula that would increase pensions and reduce the over-funding amount. Because of over-funding, the Company has effectively avoided making any pension contributions for the past 10 years.

Shift Differential

Gannett is demanding an end to any shift differential pay for those working evening or night shifts. This despite the fact that some supervisors have used the current shift differential as a recruiting tool for some staffers.

Your Guild Bargaining committee is concerned that Gannett's bargaining demands, particularly the concessions on sick leave, shift differentials, merit pay and significantly higher health insurance co-payments will pose dramatic economic burdens on employees, particularly younger female staffers who tend to use sick leave and health coverage more often for medical events such as maternity leave. These cost shifts come at a time when the Free Press staff is becoming predominantly female.

Please share your concerns with your supervisors. Now is the time to tell the Company if you think these concessions are unwarranted or unfair. The Guild Free Press Committee also wants to hear from you before the next round of meetings. You can e-mail us at the following addresses: Jocelyn Faniel-Heard, JocelynF2@yahoo.com; John Gallagher, Jtgallag@comcast.net; Patty Montemurri, MONTEM8@aol.com; David Ashenfelter, Ashenf@ameritech.net; Diane Weiss, dt_weiss@hotmail.com; and Lou Mleczko, Lou@detroitguild22.com.

We will keep you informed.

In Unity,

Jocelyn Faniel-Heard, Unit Chairperson; John Gallagher, Patricia Montemurri, David Ashenfelter, Diane Weiss, Lou Mleczko, President, Local 34022

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December 14, 2006

FREE PRESS GUILD BARGAINING BULLETIN NO. 2

The Guild had its second bargaining session with the Company on Monday, December 11. Again, no member of Free Press editorial management attended. We pursued a detailed discussion and exploration of the issues on the table, including the Company's proposed contract concessions.

The Company withdrew its proposal that the Company can establish four-day work-weeks for any employee.

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, critics, specialty writers, key people who draw readers, and people with photo and artistic skills. We asked whether the Company was making this proposal because it was contemplating layoffs, and the Company said no.

The Guild's position is that the proposal is extremely vague and could effectively eliminate seniority. Seniority is an important contract principle, and seniority must be very carefully defined.

Union Information Requests

We continue to seek information regarding the Company's proposed concessions on eliminating across-the-board wage increases, eliminating shift differential, eliminating daily overtime, eliminating the clause saying that 6 hours of work on a holiday shall constitute a day's work, eliminating double-time pay for all work after 6 hours on a holiday. The Company said it does not have the information and is still working on compiling it.

The Guild wants to know the rationale for the proposed concession, the amount of savings the Company is seeking on each concession and the effect on employees' earnings.

Pension

Because the Guild/Free Press pension plan is healthy and well-funded, the Guild made a proposal to increase pension benefits for future retirees. The Guild and the Company agreed that we would have the actuary cost out the increased benefits the Guild is seeking, so that we have a better framework for the bargaining.

Reasons for Concession Demands from Company

The Guild pursued the issue of why the Company is seeking contract concessions and how much. In our bargaining session, the Guild laid out several principles regarding "concession bargaining".

  •   Financial context

    Most concession bargaining occurs with financially distressed employers. The Detroit Free Press, Inc. and Gannett have 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, Gannett's stock value 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 many 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 position.

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 the following:

Business Week reports that Ed Walczak of Vontobel Asset Management, has acquired a 2% stake in Gannett. He is a "Warren Buffett-style value investor". He expects Gannett's stock to go from $59 to the mid-70's in about 12 months from now - right in the middle of our contract. Walczak obviously sees a future in newspapers.

Reuters reported on December 6 that Gannett will meet Wall Street forecasts on share earnings for the fourth quarter. For 2007, Gannett "should see advertising revenues rise with a slight drop in circulation revenues."

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 FREE PRESS BARGAINING COMMITTEE

Jocelyn Faniel-Heard, Unit Chairperson; Patty Montemurri, John Gallagher, David Ashenfelter, Diane Weiss, Lou Mleczko, Local 34022 President & Duane Ice, Guild attorney

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December 7, 2006

FREE PRESS GUILD BARGAINING BULLETIN NO. 1

The Guild had its first bargaining session with the Company on Tuesday, Dec. 5th. We are bargaining a new collective bargaining agreement to replace the one expiring on January 14. The Guild Free Press committee includes Unit Chairperson Jocelyn Faniel-Heard, Patty Montemurri, John Gallagher, Diane Weiss, David Ashenfelter, Local 22 President Lou Mleczko and Attorney Duane Ice. The Company was represented by Gannett's John Jaske, Kristi Bowden, V.P. Human Resources for Detroit Newspapers and Kirsten Starkey, Employee Relations Detroit Newspapers.

At this first meeting, we exchanged initial contract proposals. The Company presented a staggering list of proposed concessions on wages, benefits and working conditions.

Company Concession Demands

The Company is demanding more than two dozen changes to the Guild contract including:

  •   Eliminate daily overtime
  •   Eliminate most shift differential pay
  •   Allow part-time employees to replace full-time employees
  •   Reduce or eliminate existing job classifications and pay levels
  •   Require employees to perform multiple tasks without limitations or pay adjustments
  •   Eliminate work jurisdiction and allow Company to give employees' work to others, inside or outside the Company
  •   Eliminate across-the-board wage increases. Replace with merit pay only
  •   Company can issue paychecks every two weeks instead of weekly
  •   Eliminate 7.5-hour work day and allow Company to establish work days of any length
  •   Establish separate seniority lists and layoff rights for "senior writers" and columnists
  •   Reduce the maximum for severance pay from 40 weeks to 26 weeks
  •   Eliminate union security

The Company claimed that its financial condition and the decline in the Michigan economy warranted the concessions. The Guild requested information concerning how much each concession would save the Company. The Company said it had not done any cost analysis of its proposals and had no specific data to support the concessions being sought. The Company admitted that it was profitable and was not pleading poverty in bargaining a new contract. However, they made it clear they want to make employees work harder and longer for less pay and benefits.

These demands for concessions are in addition to the Company's proposed changes to health insurance benefits that were presented last week. These included much higher monthly premium co-pays, new annual deductibles, higher drug co-pays, spouse and smoker surcharges, higher co-pay for office visits, emergency room, urgent care and hospital admissions. For most Free Press employees, the Company is demanding that you pay 20% of the monthly insurance premiums, increasing 2.5% each year. (Check the Council of Unions' November 29 Bulletin for more details).

Guild Position

The Guild position is that the Company has not made the case for concessionary bargaining. In the absence of real data, we must assume that Gannett's operations in Detroit are profitable, and that it can afford a decent contract and to maintain good benefits. This must be true, since Gannett increased its holdings in Michigan (Free Press/Detroit Newspapers and Suburban Communications). Regarding the Company's demands on multi-tasking in work assignments, we said our fundamental concern is the open-ended approach the Company is demanding. The Company proposal would allow it to assign any work to anyone irregardless of job classification, training and background.

Guild Proposals

The Guild made a modest number of initial contract proposals including:

  •   Across-the-board annual wage increases as in the past, to help meet the cost of living
  •   Merit pay over and above the annual increases
  •   Increase the mileage reimbursement rate
  •   Increase the pension benefit formula
  •   Maintain existing health insurance benefits and cap the current employee co-payments
  •   Add paid holidays - Martin Luther King Day, Christmas Eve and New Year's Eve

The Guild is going to resist the concessions demanded by the Company. They would be harmful to all Free Press employees. We need you to understand what is at stake and stay informed of what is going on.

The next Free Press bargaining session is December 11. We will keep you posted. Thank you for your support.

GUILD FREE PRESS BARGAINING COMMITTEE

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June 5, 2006

FREE PRESS REPORTER/PHOTOGRAPHER GRIEVANCE

The Guild has filed a grievance charging that the Free Press has violated the union contract by unilaterally assigning photo work to reporters and reporter work to photographers.

Article III and Article XIII of the Guild contract specifies the separate job classifications of reporters and photographers and the pay those staffers are entitled to receive. If the Company creates a new job or classification, or if they modify an existing job significantly, the contract requires the Company to meet with the Guild to determine the appropriate rate of pay and the method in which new equipment and processes are issued to employees.

Meanwhile, it is important that employees covered by the Guild contract understand some of the key issues that are intertwined with these work assignments.

For reporters, the Company is issuing cameras to take photographs for the newspaper and for the Free Press web site. This is a substantive change in work responsibilities, and it could impact future rates of pay, performance evaluations and minimum job requirements.

Among the questions the Guild is asking include: What changes are being made in reporters' duties? What new equipment will reporters be required to use and what training will they receive in using this new equipment? What new work tasks? What software?

Regarding minimum performance requirements, what will be the standards and expectations for reporters taking photographs as part of their assignments? Will reporters be disciplined or threatened with discharge for not taking photographs acceptable to the Company?

Similar issues will be affecting photographers. Will photographers be graded on their interviewing abilities? Will photographers receive training regarding use of audio equipment? What training will photographers get concerning issues of libel, attribution of sources and how audio recordings will be prepared for the newspaper and the web site? Will photographer performance reviews rate staffers on interviewing abilities, story ideas, use of direct quotes and attribution and other related journalism requirements?

Originally, supervising editors told staff that use of cameras and digital audio recorders was optional for reporters and photographers. Now, we are being told that this type of work isn't optional. Related issues include: staffers being assigned to appear on television or on the radio; overtime pay for interviews conducted from home; protection of confidential sources or material exclusively obtained only for the Free Press.

The Guild isn't opposed to using new technologies and processes. Our motto is: "The union for the information age." However, there are profound and substantial issues confronting all of us in using the newspaper, the Internet and broadcast media as part of our journalistic responsibilities. The Guild wants to make sure that all of the employees we represent are treated fairly and compensated justly for their changing roles as journalists, whether it is photo, print or on-line.

We will keep you informed as we engage management on these important issues.

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January 16, 2006

FREE PRESS STAFFERS GET 2% GUILD RAISE JAN. 16TH

On Jan. 16th, all Free Press staffers working in the Guild's jurisdiction will receive a 2% pay raise. This across-the-board wage increase for all editorial employees currently on the payroll is the third and final wage hike as required by the Guild contract with the Free Press.

The Guild contract expires Jan. 14th, 2007. Our success in achieving benefit improvements for you is greatly dependent on the number of Guild members we have in the editorial department. If you haven't joined yet and you want to have a voice in your future, now is the time to join the Guild. Unit Chairperson Jocelyn Faniel-Heard or one of our stewards can provide you informational materials about Guild membership.

A solid majority of your editorial colleagues are dues-paying members. Don't be a free-rider. Join the Guild today!

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August 19, 2005

FAQ'S ABOUT THE GUILD PENSION PLAN FOR FREE PRESS EDITORIAL STAFF

"The Free Press/Guild Pension Plan is in the best financial shape of all the plans Mercer handles here in Michigan" - Michael G. Baker, William M. Mercer Co.

Best shape indeed! Free Press staffers covered by the Guild contract have an excellent defined benefit pension plan. Here are some Frequently Asked Questions about your Guild pension plan.

What is a defined benefit pension plan?
Unlike 401-K's, the Guild/Free Press defined benefit pension plan provides specific retirement benefits determined by a formula based on an employee's years of service, the participant's age and the salary earned by the employee. At the Free Press, you are covered by the Detroit Free Press/Newspaper Guild of Detroit Pension Plan (The Plan), which has been in effect since 1966. Currently, there are 213 retirees receiving benefits, 560 former employees have deferred benefits and 264 active participants.

What does the Detroit Free Press pay into the plan? When are you eligible to receive benefits? What is the normal retirement age?
Currently, the plan's assets exceed liabilities to the extent that The Plan isn't eligible for IRS tax exempt status. As a result, the Free Press isn't required to make a weekly contribution of $28.65 per employee. The current market value of assets is about $68 million while liabilities are more than $50 million, resulting in about a $13 million financial cushion. Mercer, The Plan administrator, believes company contributions aren't projected for the next five years. Employees become vested in The Plan after five years of full-time employment. Normal retirement age is 62 but earlier benefits can be drawn at reduced amounts.

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 Plan regardless of 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 Plan is a jointly-managed defined benefit pension plan with both the Guild and management having an equal voice on the Board of Trustees. Union trustees are: Jocelyn Faniel-Heard, Unit Chairperson and Treasurer; John Gallagher, Free Press business reporter; and Lou Mleczko, President of Guild Local 22. Management trustees are: Randi Austin, Senior Vice-President Labor Relations and Human Resources for the Detroit Newspaper Partnership; two other seats are currently vacant.
As of March 31, 2005, 47.9% of fund assets were invested in equities; 41.8% in bonds; 9.5% real estate; and 0.7% cash. Total assets annual investment return for the past 12 years has averaged 10.4%. The Plan's investment managers are supervised by the Marco Consulting Group of Chicago. Equity managers Forstmann-Leff, large cap growth; LSV Asset Mgt, large cap value; Dimensional Fund Advisors, small cap growth; Delaware Investments, international equity managers; JP Morgan Fleming Asset Mgt, fixed income; American Realty Advisors, Building Investment Trust, real estate equity.

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A Message For Non-Members at the Free Press

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 Free Press. 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 Knight-Ridder, Gannett and others 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 Free Press? 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 Free Press 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.

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 check-off 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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