Talks stall; Guild threatens strike (Philly Inquirer SuicideWatch)

After talks between Philadelphia's two largest papers and their biggest union bogged down over pension issues last night, the head of the union urged management to "sober up" or face a strike as early as today.

Representatives of the Newspaper Guild of Greater Philadelphia warned evening-shift workers at The Inquirer and Philadelphia Daily News to be prepared for a walkout today after yesterday's bargaining session ended. Guild president Henry J. Holcomb said in a memo that the papers' owners refused to compromise on their "desire to take full control of our [pension] fund" and stop contributions to the plan.

"The Guild has refused to make any proposal on the pension," countered the owners, Philadelphia Newspapers L.L.C.

"We're hoping that they sober up tonight," Holcomb said last night. "If they don't come to grips pretty soon," the Guild's national union, the Communications Workers of America, "will authorize a strike anytime after tonight."

The Guild threatened to strike after its contract expired last week, but said members would keep working as long as talks progressed. Publisher Brian Tierney said he would continue putting out the papers with non-striking workers in the event of a Guild walkout. The Guild said it would put out a news Web site if there is a strike.

Meanwhile, unions representing 1,000 production, maintenance and distribution workers at the papers will review terms of proposed three-year labor contracts in a series of meetings over the next week.

The tentative agreements, which include a signing bonus that members of the unions said would total $1,500, in two installments, and a $25-per-week wage increase in the third year, cover Teamster drivers, pressmen, mailers, and other union workers based primarily at the company's Upper Merion Township printing plant.

Tierney and other company officials declined to comment on the tentative agreements, pending ratification by the unions. Contact staff writer Joseph N. DiStefano at 215-854-5957 at jdistefano@phillynews.com.

UPDATE: Nine Philly Unions Agree -- But Guild Reaches Impasse

By Joe Strupp

Published: December 06, 2006 12:50 PM ET updated 6:00 PM ET, 11:00 PM

NEW YORK On a day when contract agreements were reached with nine unions at two Phildadelphia daily papers, the Newspaper Guild found itself at an impasse with management over a pension issue and the lack of a wage proposal.

After negotiations broke off after 6 p.m., the guild issue the following bulletin to members:

"Today, the Company refused to move on its plan to freeze the pension fund. It wouldn’t budge on its desire to take full control of our fund away from the joint board of trustees. The Company wants all that power as it, and it alone, seeks a multi-employer plan in which to place the frozen fund.

"The Guild negotiating team told the Company it would go into a multi-employer pension fund, but it would not relinquish its place in the decision making process. Under the Guild plan, the pension trustees – composed of an equal number of representatives from the Company and the union – would seek a suitable multi-employer pension fund to merge into. If the sides could not agree on a fund, they would go into arbitration.

"It is essential for both sides to be involved, to keep the process moving quickly and to protect OUR RETIREMENT SAVINGS. 'This is a damn sad situation,' said Guild President Henry J. Holcomb. 'The Company’s position threatens to undo all of the good work we have done and put us on strike.'

"The Company also refused to make a wage proposal, even though it settled with the other unions last night.
With that information, the Guild could possibly craft a solution to the Company’s problem.

"Because this is the most serious of our strike issues, members should please take home their personal items from work and await instructions on other actions."

Earlier today, E&P reported the following.

*
Today's bargaining session between the Newspaper Guild of Greater Philadelphia and the city's two major papers may be the most significant since the union's contract expired a week ago and the first threats of a strike arose.

But union leaders at the Philadelphia Inquirer and Philadelphia Daily News now appear to be focused on continuing negotiations that have so far resolved a major dispute over seniority rules, while keeping the potential strike on the back burner as a last resort.

"I actually don't like to talk about it while there is progress," guild spokesman Stu Bykofsky said of the strike possibility. "The other side knows it is there, but we go into this today optimistic because we are coming off of a success with seniority."

Bykofsky, a Daily News staffer, was referring to two lengthy bargaining sessions over the weekend that resulted in an agreement on seniority rules that currently give veteran employees more power to keep their jobs than newer workers. Neither side has revealed what the agreement includes, but it has allowed the talks to move on to a dispute over the paper's pension fund.

Philadelphia Newspaper Holdings, which owns both papers, has sought to cap the pension fund as part of an effort to curb costs at the financially-strapped dailies. Bykofsky said the paper's pension contributions currently equal about 6% of each employee's salary.

Both sides were set to meet at noon today after not negotiating for two days, with the pension issue the major subject. "Today is kind of a pivotal day," Bykofsky said. "Frankly, I hope they are there until two o'clock in the morning because that seems to be what it takes to get progress."

The negotiations have not even reached the issue of wages and salaries. Bykofsky declined to say what level of raises the union would be seeking, or if it would accept no raises or a salary cut. "I won't comment on that because I am not a negotiator." Publisher Brian Tierney has said he needs to cut as many as 150 jobs at the papers to close a budget gap.

The guild is one of 10 unions at the two papers negotiating for new contracts, but the only one that has voted to authorize a strike. Last week, when the guild set a midnight deadline on Nov. 30 for a possible walkout, the remaining unions, under the umbrella of the Philadelphia Council of Newspaper Unions, agreed to extend their contracts until at least Dec. 9.

The guild, which represents about 900 employees, is the largest bargaining unit of the two papers. Its last contract ended in August, but had been extended twice until Nov. 30.

Bykofksy said the union has been firm about not wanting another extension, but is willing to put off a strike if talks continue to progress. Still, he warned that problems in today's negotiations could spark new strike possibilities.

"It could definitely break things," Bykofsky said of today's session. "With the pension you are screwing around with people's future security."

UPDATE FROM AP at 6:00 PM ET:

Nine unions at The Philadelphia Inquirer and Philadelphia Daily News have reached tentative agreements on their contracts, leaving only the 900-member Newspaper Guild to work out a deal.

Joe Inemer, vice president of the Philadelphia Council of Newspaper Unions, said each of the unions will ask members to vote to ratify their contracts over the next week and a half.

The council, which represents 1,100 employees in nine unions at Philadelphia's two largest newspapers, agreed to terms on economic issues with owner Philadelphia Media Holdings on Tuesday night. They had reached an accord on non-economic matters in prior weeks.

As of late Wednesday, The Newspaper Guild of Greater Philadelphia remains in negotiations with management, principally over management's proposal to end previous funding for the pension.

Jay Devine, spokesman for Philadelphia Media Holdings, said management will wait until it gets a better sense of savings it could negotiate from the Guild before deciding on a final number of layoffs.

Department heads had been told that as many as 150 jobs could be cut from the Inquirer newsroom, about a third of the staff.

Joe Strupp (jstrupp@editorandpublisher.com) is a senior editor at E&P.

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update...

Philly Newsrooms Brace for Strike After Talks Break Off

By Joe Strupp

Published: December 07, 2006 11:25 AM ET

NEW YORK Guild members at Philadelphia's two daily newspapers are bracing for a strike that some say could come as soon as tonight after contract talks broke off with management on Wednesday over a dispute involving the union's pension fund.

Rank and file employees who came to work today at the Inquirer and Daily News found a union bulletin in their e-mail boxes reminding them to take personal belongings with them when they leave the office, one of the key preparations for a walkout. It also offered details of the stalemate, which several staffers say paints a bleak picture.

"I think the strike is all but a done deal," said Damon Williams, a Daily News reporter who has been at the paper since 1998. "It will happen at any moment now. Both sides are so entrenched, it is a sad, sad development."

Fellow Daily News scribe Dana Difilippo agreed. "Nervous would be a good description," she said when asked to describe the mood among reporters. "There is more of a thought that it could happen than throughout this whole thing. We did not think there would be a strike, but we came in today to an e-mail that said 'clean out your desks.'"

A six-year Daily News veteran and the mother of two young children, Defilippo said talk of a strike dominated newsroom discussions today, along with the ongoing threat of layoffs. "People are trying to figure out if they should start looking for a job," she said.

Similar viewpoints were found at the Inquirer, where columnist Monica Yant Kinney said a strike "has never felt more real than this morning." She said the negotiation accomplishments of the last week, including resolution of a conflict over seniority rules, have disappeared. "If there was any relief from last week, it is gone," she said. "It's bleak."

Leaders of the Newspaper Guild of Greater Philadelphia, which represents about 900 employees at both papers, negotiated for six hours with management on Wednesday. The key issue at stake was the union's $137 million pension fund. The newspaper has sought to cap its contributions to the fund and reorganize control so that Philadelphia Media Holdings, which owns both dailies, has more control over the funds.

The negotiating session was the third since last Saturday. On Nov. 30, the union's last contract extension expired, sparking plans for a possible strike. Guild leaders said just yesterday that a strike was less likely than it had been last week. But today, guild spokesman Stu Bykofsky said circumstances had changed drastically.

"I think the situation is worse than it was a week ago," Bykofsky said this morning. "There was still talking then, but right now the company has dug in its heels and they refuse to give. Currently they are stuck on stupid and glued to greed."

Calls to management representatives were not immediately returned Thursday morning. Bykofsky said management sent a statement to employees after yesterday's talks that said, in part, that the company "has now twice modified its initial pension proposal, the guild has refused to make any proposal on the pension." Bykofsky said the union has opposed the company proposals because "each of their modifications leaves the company in charge" of the pension.

Company officials, who appear to have reached agreement with the paper's nine other unions on new contracts, has said it would publish in the event of a strike, but not hire replacement workers.

Union leaders had not revealed any further plans for picketing or even calling a strike today. Bykofsky said there was talk of some kind of protest outside the paper today, but nothing official yet. He said no further bargaining sessions have been set, but a guild meeting is likely today.

Bykofsky had said the holiday season was the most advantageous for a strike, given the company's reliance on holiday advertising. "If we are going to be forced to strike, the goal is to inflict economic harm on the employer," Bykofsky said. "Right now, looking at the company's position, I would say a strike today is possible, a strike tomorrow is more possible."

Joe Strupp (jstrupp@editorandpublisher.com) is a senior editor at E&P.

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