by Jim Romenesko Published Jan. 4, 2010 7:31 pm Updated Mar. 4, 2011 9:19 am

Memo to Newsday union members

From: Zachary R. Dowdy
Date: Mon, 4 Jan 2010 13:56:41 -0800 (PST)
To: [Newsday staff]
Subject: proposed editorial agreement

Dear Members:

Attached please find the tentative agreement for the editorial unit, a proposed contract that now awaits the membership’s ratification.

Union officials are all quite upset that provisions of the proposed contract include deep cuts in benefits and salaries. However, it would be a huge mistake to think or imply that we as the union leadership yielded to the company’s requests without asking top management in all of the bargaining units to document their need for our concessions. It would also be wildly inaccurate to think we did not offer a slew of alternatives to each adverse item in their proposal. We did, and we did so aggressively. They said they are in a crisis.

We examined their audited statements to the federal government and to their shareholders and the numbers match up. Their books show the company has lost at least $7 million in 2009. And weak advertising revenue projections, by independent analysts, project double-digit losses in advertising revenue in 2010 and 2011. These are not $7 million reductions in profit or revenue, but actual losses, meaning their expenses exceed their revenue intake by millions of dollars.

We are aware of Cablevision’s successes last year, and that fact was discussed over the bargaining table. But our negotiations were with Newsday, and we must deal with Newsday’s problems primarily.

That said, the union leadership is certain that we are bringing back for your examination the best contract we could reach under the circumstances. Do not interpret this statement to mean that we are satisfied with the terms. Again, we do not like them. They are horrible and unprecedented in what they demand from Local 406 members.

We all know that our industry is in terrible shape, as are the national and world economies. After heated arguments among ourselves about whether to walk away from the table in protest to the company’s terms, we felt it would be best to allow the membership to decide whether the terms proposed are conditions that members could live with given the current crisis.

The reason we are allowing it to be put up for a vote is not because we love it or have given up, but to allow you to exercise your right to see and weigh in on what’s been discussed so far.

It is the union’s duty to go as far as it can to reach an amicable agreement and then offer the proposal, warts and all, to the membership to decide. If that agreement is rejected, we will go back to the table with a mandate bearing the strength of the union’s numbers.

So the next step is up to you. You can vote up or vote down. In the event the majority of us vote it down, we will go back to the table and try to reach a new agreement.

As you may know, that approach does have some risks, as the company may argue that it is in a less favorable position to mitigate the concessions it is asking for because, as time passes, it is not reaping the financial savings of the concessions proposed in the first round of talks. They could have a stiffer posture the second time around, and companies often do. This information is provided not to discourage members from rejecting the contract proposal, but to allow us to see clearly what we will be up against if we decide to reject it.

There are too many things to consider to go into great detail in an email, but some of the terms of the new contract, which are attached in full here, would include a 10 percent salary reduction, a 40-hour work week and the loss of a vacation week in a three-year contract. The language is attached. We are also handing out hard copies tonight and throughout the week.

We can discuss our options in detail all week, and I and the other union leaders will try to answer all questions before the vote, which we are trying to set for Sunday, Jan. 10. Details be available Tuesday during the information sessions.

Editorial will have two informational sessions tomorrow, Tuesday, Jan. 5, in the Newsday auditorium, at 2 p.m. and 7 p.m., but feel free to ask questions between those hours, as we will be there to answer them.

Liisa May and I thank you for your patience, support and guidance, as well as your suggestions to offset some of the terms proposed by the company. We deeply appreciate the research and insights that some members provided when we needed their help. We are always open to suggestions and welcome your input.

Zack
Vice President
Editorial Unit
Local 406
GCC/IBT

MEMORANDUM OF AGREEMENT
EDITORIAL

Memorandum of Agreement by and between Newsday LLC (“Newsday”) and Local 406, GCC-IBT (the “Union”) wherein the parties agree as follows:

1. Except as modified and superseded by this Memorandum of Agreement, the Editorial unit collective bargaining agreement between Newsday and the Union effective January 1, 2006 ­ April 1, 2010 shall continue in full force and effect.

2. Wages ­ Effective February 22, 2010 and reflected in paychecks issued on March 6, 2010, the minimum weekly wage for all bargaining unit employees (every pay level in every job classification) shall be reduced by 10%.

3. Work Week:
a. Effective January 1, 2010 (or as soon after as practicable), the work week for all employees shall be increased to 40 hours, exclusive of a lunch period. Employees may work a 4 day work week (10 hours each day, exclusive of lunch) upon the consent of both Newsday and the employee.
b. Pay for the 40-hour work week shall be based on the existing weekly rate, reduced by the application of paragraph 2 above. Pay for part-time employees shall be based on an hourly rate arrived at by dividing the applicable reduced weekly rate by 40. The part-time Sport Assistant rate shall be based on the corresponding Starting, 6 Month, First Year and Second Year (as the case may be) weekly rates for the “Lister.”
c. Pay for part-time TRE employees shall be based on a daily rate of 1/5 of the applicable reduced weekly rate. (Conform compensatory time language for TRE employees.)

4. 80-20 Rule – The percentage of employees required to be in the unit shall be reduced from 80% of Editorial employees (excepting 17 employees determined by Newsday) to 77% of Editorial employees (excepting 17 employees determined by Newsday).

5. Layoffs – Modify paragraphs 2 and 4 of the Layoff provision (Section 15) to state:
Employees in the affected job classification will be laid off in inverse order of length of service within said job classification, except that in Newsday¹s reasonable judgment junior employees of greater skill, qualifications, proficiency, experience or ability may be passed over, or employee(s) engaged in a special project may be passed over temporarily for the duration of the project, in the application of this provision.

In the event that there is a reopening in the job classification in which there has been a layoff, the laid-off employee shall be offered such position in order of seniority, except that in Newsday’s reasonable judgment junior employees of greater skill, qualifications, proficiency, experience or ability may be recalled first or employee(s) engaged for a special project may be recalled first for the duration of the project, in the application of this provision.

6. Newsday Auto Plan ­ Revise Attachment B to provide that employees will be reimbursed at 40¢ per mile (not at the IRS rate) for use of their personal automobile for business purposes.

7. 2-Year Interns ­ The permissible number of 2-year interns shall be increased from 12 to 18.

8. Overtime ­ All work performed on a bargaining unit employee’s 6th day of work in one week shall be paid at the overtime rate of one and one-half times pay. Days paid, but unworked shall be deemed a day of work.

9. Paid Leave Donation ­ Upon a request by the Union, the Employer shall, on a case by case basis, discuss methods of providing an employee with additional paid time off (up to a maximum of ten (10) days per year) through donations of paid time off by other unit employees, provided the employee has exhausted all of his/her other paid leave. Such additional leave shall only be approved for use in connection with a family member or qualified domestic partner’s serious medical emergency, and shall not be used for the employee’s own medical needs.

10. Automation ­ Revise Section 33, ¶2 as follows: “For the purpose of job development, Newsday recognizes the need to train all employees required to use new equipment and software that has been or is scheduled to be placed into regular daily production, and will provide this training at its expense during work hours. Training opportunities will be posted, except for training for the use of experimental equipment.”

11. Vacation ­ Effective January 1, 2010, eliminate one (1) week of vacation for all bargaining unit members. (The employee shall have the option of taking the week (or 5 individual days) off without pay, subject to the requirements of Section 17, Vacations, ¶2.) Bargaining unit members entitled to one week of vacation, shall be reduced to 3 days.

12. Severance ­ In the application of Section 15, paragraph 1, any full-time employee laid off within the first year of this Agreement shall receive a voluntary separation package that contains two (2) weeks’ pay for every completed year of service with Newsday, up to a maximum of fifty-two (52) weeks’ pay, and shall include a medical component.

13. Retirement Contribution – At the end of each quarter of each year, commencing with the first quarter of 2012, Newsday shall make a 3% DCRP (or 401k) contribution on behalf of each eligible full-time employee employed on the last date of the quarter based on that employee’s gross earnings in that quarter. Eligibility shall commence in the calendar year following the year in which the full-time employee worked a minimum of 1000 hours.

14. Medical Contribution Rate ­ Newsday shall not increase the contribution rate paid by employees for their selected medical, dental, and vision plans in 2010 (for plan year 2011), 2011 (for plan year 2012), or 2012 (for plan year 2013).

15. Term ­ The agreement shall commence January 1, 2010 and expire on April 1, 2013.

16. The terms of this Memorandum shall be subject to ratification and, upon ratification, shall promptly be incorporated into a full and complete collective bargaining agreement and executed by the parties.