Gannett honchos: 2009 ads down 30 %, worse to come
This just received — note to Detroit Newspaper Guild members from administrative officer Lou Mleczko after meeting with bosses:
Dear folks:
Union officers representing the Guild and all other unions that have
contracts with the DMP and the News, met for several hours this morning with
Company representatives, who requested the meeting.
I was there representing Guild News, Free Press and Maintenance Units as
was the Guild attorney Duane Ice. There were no editorial supervisors from
the News or Free Press in attendance. Company representatives included:
Robert Verycruysse,DMP attorney; Kristi Bowden, DMP V.P. Human Resources;
Joyce Jenereaux, Exec. V.P. DMP; Kirstin Starkey, Human Resources; Ed
Murphy, benefits administrator.
The News also had attorney Joseph A. Ritok, of Dykema law firm,
attending the mtg.
The Company said layoffs are forthcoming for all union-represented
jurisdictions including the three Guild units. The Company lost money in
2009 despite the fact that it made all of its goals and targets following
the switch to the digital home newspaper and street sales format implemented
last March.
Advertising revenues were down 30% and projections are for more red ink
in 2010.
The Company did say that some health care concessions, which would
increase employee deductibles and co-payments, would be sought in exchange
for some reductions in the number of layoffs. They made it clear, however,
that layoffs were going to happen irregardless of any health care
concessions. They also emphasized that there could be further layoffs before
the contracts expire in 2010, depending on overall newspaper revenues.
There were no details provided on how many layoffs would occur in each
of the respective union jurisdictions. The unions unanimously rejected the
offer to reopen the contracts. The unions said any discussions involving
health care concessions must include dropping the open shop provisions in
their contracts. We also indicated that more financial details would be
needed before the unions could respond to any Company proposal. The Company
said that was a “non-starter” and they ended the meeting.
Meanwhile, the Guild said it had no objection to the News offering a
voluntary resignation to staffers in the Guild jurisdiction. The Company
said it will offer the same severance pay to voluntary quits as in the Guild
contract: 2 weeks for every year of service to a maximum of 26 weeks. They
will posting a notice regarding this voluntary resignation offer soon.
Lou Mleczko
President, Local 34022
