The Newspaper Guild of Greater Philadelphia

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September 1, 2010

Dear Guild member,

As you should have read by now, the closing date for the sale of the Daily News, Inquirer and Philly.com to Philadelphia Media Network, Inc. has been postponed to Sept. 14 in order to give the new company additional time to come to terms with several unions that have yet to ratify their agreements. Our contract will not take effect until the sale is completed and we will be certain to update the membership with any pertinent developments.

Let us take this opportunity to try and clear up a rumor that Brian Tierney started when he told employees at the Schuylkill Printing Plant that if a union fails to sign a contract with the new owners, he returns. While this has spread like wildfire, it is not true.

Guild members have asked us if Mr. Tierney was behind local philanthropist Ray Perelman being paraded through 400 N. Broad Street on the day of our ratification vote last week. The answer is not clear although Inquirer Editor Bill Marimow told his staff in a news meeting that Perelman, who had partnered with Tierney and other insiders as the so-called Stalking Horse bidder during the auction, was looking at financial data in case the lenders didn’t close and he had to step up to bid.

Bankruptcy Court Judge Stephen Raslavich, who according to a KYW Radio report warned against “gamesmanship” so late in the process, called a private conference in his chambers the following day after which Philadelphia Media Holdings CEO Joe Bondi gave a statement to the radio station that there was no Perelman bid.

But wait, you might say, I thought Tierney pledged to make this a smooth transition. Isn't he supposed to go away, stay quiet and collect his $300,000 "consulting" fee? Yes, that is what he agreed to. We can't say for certain that Tierney is working to delay and derail the closing process. However, as his departure settlement stipulates that he is to be paid through closing, and six months beyond, certainly there would be a financial motivation for him to do so. That fact coupled with his misleading workers into believing he magically returns if anything goes wrong with the sale, seem to suggest there could be gamesmanship at play.

Several other senior management officials, whom the new owners have pledged to pay for two months beyond closing, and who are involved in the contract and bankruptcy process, also potentially have a reason to sabotage negotiations and delay closing.

But enough about those who are standing in our way. Our members stepped up and voted overwhelmingly in support of a concessionary contract because we are committed to helping the new company and these newspapers succeed. We sincerely hope that after 18 months, this bankruptcy is coming to an end and we can all move forward into the future. Stay tuned for any updates.

While we have your attention, the Guild is looking for volunteers to march in Monday's Labor Day Parade along Columbus Boulevard. If you are interested in participating in the parade, which includes lunch and a t-shirt, please reply to this e-mail with your t-shirt size.

In solidarity,

Dan Gross, President,
Bill Ross, Executive Director, The Newspaper Guild of Greater Philadelphia/Communications Workers of America Local 38010

August 24, 2010

Contract Ratified 287-38

Dear Guild member,

The Guild contract with PN Purchaser Co., L.L.C. was ratified tonight by a vote of 287 in support of the agreement and 38 in opposition.

The results were certified by Election Chairperson Rita Dooling.

We thank the membership for a strong turnout and for voting overwhelmingly in support of a contract that includes concessions.

The agreement will not take effect until PN Purchaser Co., L.L.C closes on the sale of the newspapers which is expected to occur Aug. 31.

We will keep you updated with any new information as it develops.

If you have any questions, please direct them to Guild Executive Director Bill Ross at 267-240-8540 or BRoss@local-10.com.

In solidarity,

Dan Gross, President
Bill Ross, Executive Director, and the Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010

August 23, 2010

Dear Guild member,

A ratification vote/membership meeting will be from 6 to 8 p.m. Tuesday, August 24 at the Guild Hall (1329 Buttonwood Street).

The Guild Bargaining Committee recommends voting in favor of the agreement.

Guild leadership was not happy to deliver a tentative agreement that includes wage cuts and furloughs totaling a 6 percent reduction in pay, but we were glad to ensure no layoffs for at least one year, to establish a 401(k) match program, to keep vacation and sick time schedules intact, and eliminate core beats in the newsrooms which strengthens seniority.

The wage reduction and furloughs proposed at Philadelphia Newspapers are below what many of our Guild brothers and sisters have faced at newspapers across the country.

While painful, these concessions will give the new owner, PN Purchaser Co., L.L.C, the cost-savings and flexibility it needs to move the company forward and transition us into a 24-hour media company of the future. We will demand that the new management team be a true partner in the years ahead - working with us and not against us.

All new language to the collective bargaining agreement has been posted on the Guild's web site www.local-10.com for your review. It will also be available in printed form at Tuesday's ratification meeting. Except as modified in the tentative agreements, all terms and conditions of our current contract will carry into the next contract.

Please be sure to read the contract language at www.local-10.com prior to attending Tuesday's meeting. Guild leadership will answer any member questions from the floor at the meeting so that members are completely informed prior to casting their ballots.

We encourage all members to attend Tuesday. If you cannot attend you may vote by e-mail. Members who attend the meeting will sign in upon entering and then vote by secret ballot, but those who vote by e-mail will be required to identify themselves by full name and explain their reason for not attending the meeting.

You may vote by e-mail in a note to Election Chair Rita Dooling at RDooling@local-10.com. Those who vote by e-mail should write either "I vote to ratify the contract," or "I vote to reject the contract," somewhere in their e-mail so that there is no chance of confusion of their vote.

If you have any questions in advance please contact Guild Executive Director Bill Ross by e-mail at BRoss@local-10.com or by calling 267-240-8540.

In solidarity,

Dan Gross, President
The Newspaper Guild of Greater Philadelphia/Communications Workers of America Local 38010

July 26, 2010

Dear Guild member,

Some members have asked for clarification on changes to Severance Pay under the tentative agreement reached between the Guild and PN Purchaser Co., L.L.C.

The severance benefits you accrued under the current and previous contracts remain. It is considered a pension benefit because the fund that was formerly used to pay severance was rolled into our pension plan in 2002. As of April 1, lump sum severance payments are not permissible because the United Independent Union-Newspaper Guild of Greater Philadelphia Pension Plan has been certified red for the 2010 plan year. Any severance payments are paid in a monthly annuity.

Under the tentative agreement the new employer would pay additional severance benefits to what you have previously earned only in the event of an involuntary layoff or termination without cause at a rate of one week's pay per year of service with all employees being deemed new hires as of the effective date of the new contract.

The entire tentative agreement is posted on the Guild website, www.local-10.com. Except as modified in the tentative agreement, all terms and conditions of the current contract will carry over into the next contract. A ratification vote for the new contract will be scheduled after the Bankruptcy Court rules on administrative claims filed by creditors which is expected to happen shortly after an August 2 hearing. Attorneys for the new company are preventing it from entering into any union contracts pending a ruling from the court. The terms of the tentative agreement will not change from what has been announced to members and posted online.

In solidarity,

Dan Gross
President
The Newspaper Guild of Greater Philadelphia/Communications Workers of America Local 38010

July 16, 2010

The contract ratification vote scheduled for Tuesday, July 20, at the Community College of Philadelphia has been postponed because of bankruptcy court activity.

The tentative agreements the Guild reached with PN Purchaser Co., L.L.C are conditioned upon the outcome of the bankruptcy proceedings currently pending with respect to administrative claims creditors may file on or before August 1.

Attorneys for the new company are preventing it from entering into any union contracts until after Judge Stephen Raslavich rules on the administrative claims, which is expected to occur shortly after an August 2 hearing. We will re-schedule a ratification vote after that time.

The terms and conditions of our tentative agreements will not change, only the date of ratification. If the contract is ratified it would go into effect upon closing on the sale, which is expected in late August. Until then, our current contract, and current pay levels, would remain intact.

We will be in touch with any developments in the ratification process.

In solidarity,

Dan Gross, President
Howard Gensler, Treasurer
Diane Mastrull, Unit Chair
Bill Ross, Executive Director, and the Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010

July 14, 2010

We have scheduled a membership meeting/ratification vote from 6 to 8 p.m. Tuesday, July 20 in the Large Auditorium at the Community College of Philadelphia, located on 17th Street between Callowhill and Spring Garden streets.

On Thursday we issued a bulletin about the tentative agreement on economics, and we have since nailed down additional contract language on bringing Philly.com staff into the Guild, as well as eliminating the probationary system in advertising and establishing a labor/management committee which will explore ways to keep our health and welfare costs from rising during the life of the contract.

All new language to the collective bargaining agreement will be posted Monday morning on the Guild's web site www.local-10.com as well as distributed at Tuesday's ratification meeting. Guild leadership will answer any member questions from the floor at the meeting.

We encourage all members to attend, but if you cannot attend you may vote by e-mail. Members who attend Tuesday's meeting will sign in upon entering and then vote by secret ballot, but those who vote by e-mail will be required to identify themselves by full name and explain their reason for not attending the meeting in an e-mail to Election Chair Rita Dooling at Rdooling@local-10.com. E-mail ballots should not be sent until Monday when the contract language has been posted.

In solidarity,

Dan Gross, President
Howard Gensler, Treasurer
Diane Mastrull, Unit Chair,
Bill Ross, Executive Director, and the Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010

July 8, 2010

Dear Guild member,

The bargaining committee of Newspaper Guild/CWA Local 38010 has reached a tentative agreement on key economic elements of a new three-year contract that guarantees no layoffs in the first year. Talks continue on other aspects of the bargaining agreement, but we did not want to keep you waiting on details that will most directly impact your pocket.

While the past year has been a stressful time for all of us at the Inquirer and Daily News as our industry has been in freefall and our employer has been in bankruptcy, we believe this contract gives our new owners, PN Purchaser Co., L.L.C., the cost-savings and flexibility they need to move the company forward and transition us into a 24-hour media company of the future. Counting the concessions detailed below and the attrition of employees who have left since 2009, the 2011 Guild payroll will be approximately $6 million less than the 2009 payroll.

The talks started out badly, with the new employer proposing a 13-percent wage cut. The bargaining committee swiftly rejected such an onerous suggestion. Overall what followed was an atmosphere free of the vindictiveness and spite that had often plagued previous negotiations. We expect this spirit of cooperation to continue throughout the contract, and we will demand that the new management team be a true partner in the years ahead - working with us and not against us.

Here are the key concessionary components to the tentative agreement:

1) All full-time members will be required to take 10 unpaid furlough days per year beginning Jan. 1, 2011. Furlough days for part-time members will be pro-rated. Furlough days may be spread throughout the calendar year, subject to the discretion of your supervisor. Furlough days may not be taken during vacation season or at holidays without the permission of your supervisor. The 10 furlough days equal a 4-percent pay cut.

2) All full-time and part-time members will face an additional 2-percent salary reduction upon the effective date of the new contract, which remains unclear. The exception is commission sales staff. Because they will not be subjected to furloughs, there will be a total 6-percent reduction in commission pay.

3) The work week of all full-time employees will increase from 37.5 hours to 40 hours per week.

4) Shift differentials and meal allowances will be eliminated.

Among the good news:

1) The company will provide a 401(k) match of 50 percent of employee contributions up to a maximum employer match of 3 percent. For instance, if you contribute 6 percent of your pay to the fund, the company puts in 3 percent; if you put in 4 percent, the company will add another 2 percent, and so on.

2) Editorial and advertising employees of Philly.com will now be members of the Guild, an acknowledgement of our long-standing claim that they do bargaining-unit work.

3) Seniority has been strengthened. In the newsrooms, core beats (carve-outs to the seniority system) have been eliminated. So has the second tier wage scale intended for new hires. All so-called Tier 2 employees will be merged into the Main Unit editorial seniority list.

4) There is no change to your vacation or sick time.

5) In the second year of the contract, the Guild and the Company will form a subcommittee to create a potential profit-sharing plan that would not go into effect before the third year of the contract.

Stay tuned for news of further developments, including when a ratification vote will be held.

In solidarity,

Dan Gross, President
Howard Gensler, Treasurer
Diane Mastrull, Unit Chair
Bill Ross, Executive Director, and the Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010

Dear Guild member,

Last week, we told you that the United Independent Union/Newspaper Guild of Greater Philadelphia Pension Plan, along with virtually every multi-employer pension plan to which the Philadelphia Newspapers, LLC contribute, filed objections with the Bankruptcy Court to the Debtors confirmation plan, because the reorganization plan would have a detrimental impact on the pension plans’ abilities to pay their promised pensions.

Despite our objections, the bankruptcy court on Monday approved Philadelphia Newspapers reorganization plan which relieves Philadelphia Media Network, Inc, the successor company to Philadelphia Newspapers, of the obligation to contribute to any pension plan. The court dismissed a withdrawal liability of $58 million, which is the amount the fund actuary calculated the Debtor should contribute to the Pension Fund to cover the cost of accrued benefits for plan participants who are employed by the newspapers or are currently receiving retirement benefits.

Please be aware that our pension plan is underfunded, not unfunded.

The fund contains substantial assets to pay pension liabilities to current and future retirees for 20 years, as fund administrator Gabriel Zinni testified Monday in bankruptcy court. Our fund, like most other investments, took a significant hit in 2008, but is recovering steadily.

The plan trustees are exploring means to preserve and prolong the pension fund. By November the pension trustees must adapt a rehabilitation plan and will update the membership at that time.

In solidarity,

Dan Gross
Bill Ross
Trustees
United Independent Union/Newspaper Guild of Greater Philadelphia Pension Plan

June 3, 2010

Dear Guild member,

Contract talks resumed this afternoon between the Newspaper Guild and PN Purchaser Co, LLC, the prospective owner of the Philadelphia Inquirer, Daily News and Philly.com.

On a positive note, the employer has expressed a willingness to allow the Guild's jurisdiction to extend to editorial and advertising employees at Philly.com. The specifics have yet to be worked out, but Guild negotiators were encouraged that the company has recognized the importance of integrating its online and print enterprises to maximize efficiency and ensure continued success of the website and the newspapers.

As has been expected, the employer has insisted on concessions. The goal of Guild negotiators is to ensure that any sacrifices are kept to a minimum and cause our members the least possible amount of hardship.

Discussions have included the possibility of wage cuts and/or unpaid furloughs. Both sides have stressed a desire to avoid layoffs in a Guild membership that has suffered substantial staff reductions in recent years.

We broke without setting another date for bargaining, though we expect to convene soon.

In solidarity,

Dan Gross, President,
Bill Ross, Executive Director, and the
Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010

May 20, 2010

Dear Guild member,

Contract talks resumed today between the Guild bargaining committee and representatives for the new owners. The parties spent the bulk of the day analyzing a variety of prospects for reaching cost savings to ensure the health and vitality of our membership and the Inquirer and Daily News. The session was productive in large part because the new owners were able to bring company representatives and detailed financials for the first time. The next bargaining session is scheduled for June 3.

In solidarity,

Dan Gross, President,
Bill Ross, Executive Director, and the Executive Board of the Newspaper Guild of Greater Philadelphia

May 5, 2010

Dear Guild member,

The Guild opened bargaining today with the prospective owners in a civil session that included frank talk about our company's financial condition. Over the next few days, both sides will get down to work on an economic package most likely to include concessions. What those are will be the subject of intense negotiations aimed at giving our members -- as well as the Daily News, Inquirer and Philly.com -- the best opportunity for success. The parties will resume bargaining next week.

More immediately, Philadelphia Newspapers tomorrow plans to mail a letter to all employees of the Philadelphia Inquirer and Daily News stating that the company is shutting down. This is a procedural letter in accordance with the Worker Adjustment and Retraining Notification (WARN) Act, which requires any company with 100 or more employees to provide 60 days notice of a shutdown for more than 6 months OR a mass layoff of 33% of the workforce -- or 500 or more employees -- in a 30-day-period.

Philadelphia Newspapers IS shutting down as a result of the bankruptcy auction and a new company will be running the newspapers and website. As we told you last week, all employees were fired and re-hired in 2006 when Knight Ridder sold the company to McClatchy and again a month later when McClatchy sold the company to Philadelphia Media Holdings. The same situation is taking place right now.

This afternoon PN Purchasing Co. Chief Operating Officer Bob Hall reiterated the senior lenders' commitment to offer employment to all current employees and continue operation of the Inquirer, Daily News and Philly.com.

In solidarity,

Dan Gross, President
Bill Ross, Executive Director, and the
Executive Board of the Newspaper Guild of Greater Philadelphia/Communications Workers of America Local 38010

April, 14, 2010

Dear Guild member,

Congratulations to Daily News reporters Barbara Laker and Wendy Ruderman on winning the Pulitzer Prize for Investigative Reporting for their "Tainted Justice" series on alleged corruption in the Philadelphia Police Department.

These Guild members worked tirelessly and exemplify both the dedication that our membership has to its jobs and the importance of our newspapers to the community.

Everyone who works for these newspapers, regardless of department or duties, should not only be proud of Barbara and Wendy, but also take pride in working somewhere where such important public service can take place.

We would also like to congratulate Inquirer editorial cartoonist Tony Auth, on being named a Pulitzer Prize finalist.

In solidarity,

Dan Gross, President,
Bill Ross, Executive Director, and the Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010

April 12, 2010

As auction nears, Guild remains neutral.

Dear Guild member,

You don't need us to remind you that the bankruptcy process has been frustrating and confusing.

But as the auction date of April 27 approaches, we want to remind the membership that Guild leaders are committed to bargain a fair contract with whatever entity emerges with control of the Inquirer and Daily News.

As neither the present ownership nor any potential bidders have told us of their intentions, the Guild has not supported any bidder and has remained neutral throughout the bankruptcy process.

At the end of the day, what makes our enterprise successful is the effort and ability of our members, and their commitment to the newspapers and to each other. In these difficult times in our industry what we need is a publisher that understands that quality journalists and experienced and dedicated sales and circulation staffs - our members - are valuable assets that set us apart from the pack.

Stay strong, stay focused and stay tuned.

In solidarity,

Dan Gross, President,
Bill Ross, Executive Director, and the Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010

April 8, 2010

Guild members,

Here is Bill Ross's response to the company after they emailed the Social Networking Policy to all employees on Monday.

Chris,

I acknowledge receipt of the Social Networking Policy. To the extent the policy applies to non-work related activities of our members, it is overly broad and improperly and illegally interferes with our members lawful right to express their personal views. To the extent the policy seeks to subject our members to discipline/discharge for work related activities, the employer does not have the unilateral right to impose such terms and conditions of employment without bargaining in good faith with the Guild consistent with its obligations under law. Therefore, the policy if implemented and or relied upon by the employer in any regard prior to good faith bargaining is unlawful.

As always, the Guild is available to meet with you to discuss this, or any other issue affecting the rights of our members. Be advised we will inform our membership of their rights and our position with respect to this matter.

Bill Ross

Executive Director
TNG-CWA Local 38010
1329 Buttonwood Street
Philadelphia, PA 19123
If you have any questions, or concerns please contact the Guild office at (215) 928-0118 or Bill Ross at (267) 240-8540 or Bross@local-10.com.

March 11, 2010

Dear Guild Member,
On Feb. 18, the Guild sent out a memo regarding “Upcoming Changes to Your Severance Benefits.” Although nothing has changed since that memo, it has become clear to us that some members either did not pay attention to it or did not understand its ramifications. For starters, a member receives severance pay in the event of retirement at age 60, death, termination, or in a voluntary or involuntary lay-off.
Below is the memo again. In a nutshell, the key thing to understand is that after April 30, 2010, Federal pension funding guidelines will not permit the pension fund to pay out lump sum severance because the fund does not meet the present federal funding requirements. Instead severance will be paid out as an annuity. Getting your severance paid out as an annuity means it will be paid out, not over weeks or months, but over years, the number of which depends on your age and actuary-projected lifespan. As it said in the previous memo, “All members severance annuities are different, based on your pay and other factors such as age, marital status, age of spouse. In order to calculate your annuitized severance benefit, contact Cindy Swartz at Richard Gabriel Associates.” The number is (215) 773-0900.
To be clear, the move to pay out severance as an annuity has nothing to do with the movement of the pension plan into a multi-employer plan. It relates back to a move made by Knight-Ridder to turn the North Broad Street Fund, from which severance had been paid for several years, into a “pension” plan for tax reasons and then their refusal and the refusal of the Philadelphia Newspapers to fund the plan appropriately. Federal guidelines for pension plan funding, made more strict in the wake of recent pension fund scandals and the stock market hit of 2008 and 2009, leave the fund no option in the pay out of severance. The Guild will, of course, try to rectify this situation when the company’s ownership situation becomes clear. That, however, is unlikely to happen before March 31.
So, to repeat from the prior memo: “In order to collect severance in a lump sum, members ages 60 and above would have to retire by April 30, 2010. They should contact Cindy Swartz at Richard Gabriel Associates at (215) 773-0900 on or before March 31, 2010 to allow time for the benefit request to be processed.
Members of any age who are considering termination should immediately contact Guild Executive Director Bill Ross at (215) 928-0118 or at BRoss@local-10.com. He will approach Philadelphia Newspapers to request that the member be approved for a voluntary layoff. Any members who are approved for voluntary layoff would be eligible for a lump sum severance payment if they were to leave before April 30, 2010.
In solidarity,
Dan Gross and Bill Ross, Trustees
United Independent Union-Newspaper Guild of Greater Philadelphia Pension Plan
As usual if you have any questions, please contact the Guild office at (215) 928-0118, or Bill Ross at (267) 240-8540 or BRoss@local-10.com.
Below is the Feb. 18 bulletin titled "An Important Bulletin About Upcoming Changes to Your Severance Benefit"
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Dear Guild member,

In Guild communications in March 2009 and January 2010 it was discussed that the United Independent Union-Newspaper Guild of Greater Philadelphia Pension Plan would most likely be certified as "red" for the 2010 plan year. That certification has been made. This means the fund's assets are currently less than 80% of its benefit obligations. Under the provisions of the Pension Protection Act, a lump sum payment will no longer be allowed from the Pension Plan effective April 30, 2010. Therefore the severance benefit will be paid in the form of a monthly annuity. This status will continue for as long as the fund is certified as "red."

In order to collect severance in a lump sump, members ages 60 and above would have to retire by April 30, 2010. They should contact Cindy Swartz at Richard Gabriel Associates at (215) 773-0900 on or before March 31, 2010 to allow time for the benefit request to be processed.

Members of any age who are considering termination should immediately contact Guild Executive Director Bill Ross at (215) 928-0118 or at BRoss@local-10.com. He will approach Philadelphia Newspapers to request that the member be approved for a voluntary layoff. Any members who are approved for volunary layoff would be eligible for a lump sum severance payment if they were to leave before April 30, 2010.

For all other employees the lump sum severance benefit is converted to a monthly annuity amount using a given set of mortality and interest assumptions based on your age at the time of payment. The monthly annuity amount is actuarially determined so that it would be approximately the same annuity that could be purchased from an insurance company with the lump sum value of your severance benefit.

All members severance annuities are different, based on your pay and other factors such as age, marital status, age of spouse. In order to calculate your annuitized severance benefit, contact Cindy Swartz at Richard Gabriel Associates.

In solidarity,

Dan Gross and Bill Ross
Trustees
United Independent Union-Newspaper Guild of Greater Philadelphia Pension Plan

As usual if you have any questions, please contact the Guild office at (215) 928-0118, or Bill Ross at (267) 240-8540 or BRoss@local-10.com.

February 18, 2010

Dear Guild member,

In solidarity,

Dan Gross and Bill Ross
Trustees
United Independent Union-Newspaper Guild of Greater Philadelphia Pension Plan

As usual if you have any questions, please contact the Guild office at (215) 928-0118, or Bill Ross at (267) 240-8540 or BRoss@local-10.com.

January 27, 2010

Dear Guild member,

It’s nearly a year into the Philadelphia Newspapers bankruptcy and an answer to the question of who will own the Philadelphia Inquirer and Daily News doesn’t seem any clearer than it was last February when the company sought Chapter 11 protection.

While the Guild is one of three parties on the Official Committee of Unsecured Creditors on the Philadelphia Newspapers bankruptcy case, all that is truly known as to the future of the papers and the company is that the proceedings could drag on for many months.

Since August 31, 2009, the Guild contract has extended on a month-to-month basis and we anticipate it will continue to do so until a new agreement is reached with Philadelphia Newspapers, or whatever entity eventually emerges with control of the newspapers.

The Guild Bargaining Committee has met with Philadelphia Newspapers, and as we have previously shared with the membership, the company seeks to decimate our current agreement, wanting the ability to outsource any jobs in the bargaining unit, to abolish the seniority system in the event of layoffs, and eliminate consecutive weeks of vacation.

The company has refused to discuss economic proposals, though it has stated it seeks further economic concessions from the Guild. We have a bargaining session scheduled with the company on February 8. We will be sure to update the membership after that meeting. As we have stated in previous bulletins, our wages and benefits did not force Philadelphia Newspapers into bankruptcy, and will not prevent this company, or any other from being profitable with the Inquirer, Daily News and Philly.com. One of the Guild’s primary goals during the next contract bargaining is to gain jurisdiction of Philly.com, which has advertising salespeople and editorial employees who perform the same work as our members and whose duties often overlap with the efforts of our Guild members at the print products. The company spends nearly $500,000 per year on rent for the Philly.com offices when there is plenty of room at 400 N. Broad Street for those employees, with whom many of our members already work. In addition to an unneccesary expense, the separation cause an inefficiency.

Our Guild brothers and sisters at the Delaware County Times, Pottstown Mercury and Norristown Times-Herald, all owned by the Journal Register Company, which recently emerged from bankruptcy, face their own struggles. Bargaining at all three papers has reached an impasse and a Federal Mediator will join the talks in the coming weeks. The Journal Register Company refuses to move off its regressive bargaining proposals, looking to implement wage and benefit reductions, and force unpaid furloughs, of up to 15 days a year, on our members, despite the fact that all three papers were profitable in 2009. As Philadelphia Newspapers is also expected to show profit for 2009, we expect Guild members at the Inquirer and Daily News to also oppose similar concessions should they be proposed by the employer at the bargaining table.

In addition to working on contract issues and gearing up for substantive negotiations, the Guild has successfully grieved contractual violations and won arbitrations this year against the company, including bringing an unjustly terminated Inquirer columnist back to work.

The Guild Executive Board has welcomed several new officers over the past year, each of whom is committed to serving the needs of our members and devoted toward working for a fair contract. Guild leaders have noticed an increase in member turnout at meetings and face-to-face, e-mail or telephone inquiries from members.

A good number of questions pertain to the health of our pension plan, which is currently frozen. While the pension fund has recovered significantly from the economic collapse of 2008, it is still under-funded to the point that after April, it may not be able to pay out lump sum severance payments to those who retire or are laid off, though those members would receive their severance in an annuity. The United Independent Union/Newspaper Guild Pension Plan trustees will meet February 18, to discuss, among other issues, whether lump sum severance can continue to be paid out. Members who are on the cusp of retirement have been monitoring this situation closely as some plan to leave our ranks before the end of April if it is determined that the pension fund can no longer issue lump sum severance. The trustees will report to the membership after the Feb. 18 meeting.

Guild members continue to ask how they can get involved. The first step could be coming to the monthly Representative Assembly/General Membership meetings at the Guild Hall. Hope to see you soon.

In solidarity,

Dan Gross
President
The Newspaper Guild of Greater Philadelphia/Communications Workers of America
Local 38010

If you have any questions please contact the Guild at (215) 928-0118, e-mail me at DGross@local-10.com or call 215-868-9049 or contact Guild Executive Director Bill Ross at BRoss@local-10.com or 267-240-8540.

November 18, 2009

Guild Members,

On November 17, 2009 The Newspaper Guild and The Delaware County Times have agreed to extend the current collective bargaining agreement for and additional 60 days, through January 25, 2010. Both sides have agreed to keep bargaining in good faith over the next 60 days, and all current terms of the contract remain in full force. If you have any questions, please call Bill Ross, Executive Director of the Guild.

In Solidarity,

Guild Bargaining Committee

Anthony Sanfilippo Unit Chairperson
Cindy Scharr Vice Chairperson
Rob Parent Secretary
Gil Spencer IV
Frank Leonetti
Suzanne Cavanaugh

Bill Ross Executive Director TNG-CWA 38010

November 13, 2009

Dear Guild member,

As we are sure you are aware, earlier this week, there were developments in the Philadelphia Newspapers bankruptcy case that probably will further delay the conclusion of those proceedings and may have some impact on the Guild's efforts to bargain a new agreement. Before the spin doctors put their interpretation on these events, here is a report on the current state of litigation and how it effects the Guild members:
1. Our collective bargaining agreement remains in effect. That means, the company is obligated to honor all the existing terms and conditions of the contract and can not unilaterally implement any changes.
2. The unfair labor practice charges the Guild filed against the company as a result of its failure to bargain in accordance with its obligations under the law are still pending. If the Regional Director issues a complaint against the employer, our members will be further protected in the event the employer attempts to change any of the contract rights or benefits. We anticipate that the Regional Director will complete the investigation on or before the end of this month.
3. Regarding the bankruptcy, Philadelphia Newspapers, aka, the Debtors-In-Possession, filed an appeal from the Bankruptcy Court's ruling that the Senior Lenders, the coalition of banks that lent millions to Brian Tierney, and other investors, could credit bid at the auction that was supposed to be held next week. The District Court reversed the Bankruptcy Judge. District Court Judge Robreno's ruling, however, was limited to the credit bid.

As the Judge stated:
"The decision of the Court is limited in time to a point prior to confirmation, and limited in effect to a pre-confirmation auction...The Senior Lenders retain the right to argue at confirmation ...that the restriction on credit bidding failed to generate fair market value at the Auction..."
In layman's terms this means, even if the Debtors bid is the "best" bid at the auction, the Bankruptcy Judge determines if the process is fair. The Senior Lenders have filed an appeal from Judge Robreno's ruling and he stayed the auction for another week.
The real impact of all of this is that the bankruptcy will be dragged out for an additional period of time, perhaps several more months.

During that time only the lawyers and consultants directly involved in the bankruptcy will profit while we await the outcome of the case. No matter what you may hear from any source, only the lawyers won, everyone else comes up on the short end.

In solidarity,

Bill Ross, Executive Director
Dan Gross, President
Newspaper Guild of Greater Philadelphia/CWA Local 38010

As usual if you have any questions please contact the Guild office (215) 928-0118, or Bill Ross, (267) 240-8540 or BRoss@local-10.com

November 12, 2009

Dear Guild member

We are pleased to announce that today Stephen A. Smith returns to the Inquirer as a Sports Columnist.

In August, Arbitrator Richard Kasher ruled that Philadelphia Newspapers did not have good and reasonable cause to terminate Stephen and ordered that he be reinstated to his former position and receive a portion of the back pay he would have earned since being unjustly fired in January 2008.

The Guild first grieved Stephen's August 2007 demotion to general assignment reporter, then his termination and the matter was taken to arbitration. Once again, Guild counsel Neal Goldstein was successful in bringing one of our members back to work, his 10th consecutive victory against the employer.

While Stephen was eager to return to work immediately following Arbitrator Kasher's ruling in August, Philadelphia Newspapers repeatedly challenged the arbitrator's decision and later attempted to reassign Stephen, all of which led to a forceful letter from the arbitrator clearly ordering the company to reinstate Stephen to his Sports Columnist title.

If you see Stephen, please join us in welcoming him back to work.

In solidarity,

Dan Gross, President,
Bill Ross, Executive Director
Newspaper Guild of Greater Philadelphia/CWA Local 38010

If you have any questions, contact the Guild at (215) 928-0118 or Bill Ross at BRoss@local-10.com or (267) 240-8540.

October 30, 2009

TALKS GOING NOWHERE!

The Guild Bargaining Committee met with Daily Times publisher Frank Gothie Thursday afternoon in the second bargaining session – if one can call it that.

The last meeting between the two sides concluded with the guild asking the company to be more specific about their vague proposals that included a wage cut of undetermined proportions, a change in health care with the company having final say in the percentage breakdown on premium payments, and finally a proposed furlough (unpaid vacation) for up to two weeks.

The company returned to the table today without anything the Guild asked for.

Oh, they offered a few subtle changes to the proposal – namely that their proposal wouldn’t take effect until November 25th, rather than November 1st (no kidding, right?) and they added a few other words that changed the language of their proposals, but didn’t actually change the substance of it.

“I don’t know if I have anything more to give you because no one knows where the industry is headed,” Gothie said. “So, putting caps or limits on anything doesn’t make sense to us. I don’t think we can modify and restrict our position because we are in dire straights and have to be ready to turn on a dime. We’re seeing things we’ve never had to deal with. So, we wouldn’t be doing our job if we did it any other way.”

To which the guild told the company we wouldn’t be doing ours if we accepted their ridiculous proposals.

The one thing the company did do was provide the Guild with a comparative health care proposal between our current plan and the one the company has. The company’s plan would save singles and couples $22 and $32 a week respectively but would increase the costs for anyone with children as much as $47 a week. Oh, and the out of pocket expenses would double. These figures are also pre-premium increases that are expected (about 30%) come January 1.

This is also unacceptable.

The biggest problem the Guild had with the documentation provided by the company was the breakdown of what current members enrolled in the health plan are paying as part of the premium. While many members were under the impression that we were all paying 40 percent of our premium individually, Gothie told us that we only pay 40 percent collectively and that individuals are paying a varying percentage of their premium. What does that mean? Here, let’s spell it out:

Single folks (34 in all) are paying $71.93 a week, or 51 percent of your premium, not 40 percent.
The only folks actually paying 40 percent of their premium are parent/child (1 person) and husband/wife (9 in all).
The remaining 16 members who insure multiple children or families are paying slightly less than 40 percent.

The guild distinctly remembered bargaining an equal share into the contract. The company remembered otherwise. There is conflicting legalese written in our contract that supports both sides. (Gotta love lawyers who write in grey, not black and white).

After a lengthy caucus and a review of the entire insurance debacle with former Guild leader and negotiator Mary Lynn Wisniewski and long-time employee Frank Renzi, the Guild returned to the table with the company and expressed great displeasure in all of the proceedings – the confusion with the insurance, the lack of a response from the company to our request, and the continued crying poor by a company which still turns a profit at the Daily Times.

The only good to come out of the meeting was a verbal agreement by the company to plan on continuing to negotiate in good faith beyond November 25th if in fact bargaining were to extend beyond the date of the contract’s expiration.

However, the company showed no inclination on budging very far, if at all, beyond what they’ve already proposed.

“Unless there is an epiphany of revenue in the next few weeks, we have to be able to manage the expenses side of things quickly and in a viable manner,” Gothie said.

As far as the Guild is concerned, they’ll have to come up with another way, because this approach will never fly.

No new date was scheduled for negotiations, but both sides agreed to reconvene within the next two weeks.

In solidarity,

The Bargaining Team
Anthony Sanfilippo, Unit Chair, Editorial,
Cindy Scharr, Vice Chair, Editorial
Rob Parent, Sec/Treas, Editorial
Gil Spencer, At large, Editorial
Suzanne Cavanaugh, Advertising
Frank Leonetti, Circulation
Bill Ross, Newspaper Guild

October 14, 2009

Dear Guild member,

Philadelphia Newspapers today turned a contract bargaining session into an assault on the Guild’s members and our work ethic. The lack of substantive bargaining on the company’s part suggests that it might be trying to sabotage its own bankruptcy reorganization plan and the entire enterprise in recognition that it may not prevail.

In what should be considered demeaning to every member of the Guild, the company’s high-priced out-of-town lawyer said that an online enterprise such as Philly.com has a different work ethic than what is commonly found at major metropolitan newspapers such as those that we have devoted our lives to. Another company official referred to our contract as a “burdensome industrial model.”

We also heard the company say our advertising reps’ performance goals and disciplinary programs are not strong enough to compete with other media operations.

The battery of unspeakable insults, a thinly veiled attempt to stall productive talks, came during discussion of the Guild’s proposal to make Philly.com a part of our bargaining unit.

The company’s failure to submit economic proposals to accompany proposals that already seek to destroy our contract is the opposite of constructive, good-faith bargaining. It appears increasingly clear that the company has no intention of actually reaching a contract with our Guild thus jeopardizing its own survival plan. The company’s own bankruptcy plan calls for having contracts acceptable to its Stalking Horse bidder (made up of company insiders Bruce Toll and the Carpenters Union Pension Fund, and philanthropist David Haas) before that group puts up any money.

While the company pursues bargaining proposals that strip our contract of seniority, claiming it is necessary to achieve an economic advantage in an increasingly competitive market, it continues to throw money at a costly and time consuming legal battle in the courts. This approach keeps draining assets from the estate, possibly in efforts to do further harm to the operation to spite the senior lenders in the event they take control.

The Guild and Philadelphia Newspapers have not set our next bargaining date.

In solidarity,

The Bargaining Committee of the Newspaper Guild of Greater Philadelphia Local 10

If you have any questions please contact the Guild at 215-928-0118 or Executive Director Bill Ross (267) 240-8540 or BRoss@local-10.com

October 13, 2009 DELCO

First Negotiating Meeting

Newspaper Guild Local 10

Journal Register Co./Delaware County Daily Times

Oct. 13, 2009

Representing the Guild: Bill Ross, Executive Director, TNG-CWA 38010

Anthony SanFilippo, Unit Chairperson

Cindy Scharr, Unit Vice Chairperson

Rob Parent, Unit Secretary

Suzanne Cavanaugh

Representing JRC: Frank Gothie, Publisher, Daily Times

Diane Kennedy, administrative assistant

The Guild opened the session by presenting a modest proposal calling for: 1. A 2-year contract; 2. A wage increase of $40 across the board for Year 1 and 3 percent across the board in Year 2; 3. An increase to The Company's health care cost contributions to 65 percent; 4. For shift differential on weekends to go from just Sunday to Saturday and Sunday.

Mr. Gothie, on behalf of The Company, did not directly respond to the Guild proposals, instead prefacing The Company's own proposal with remarks about the state of the newspaper business, JRC's company-wide economic problems and a poor third-quarter financial performance of the Daily Times.

This is a byproduct of the state of the economy in general and more than significant slumps in advertising revenue, he said.

"We're looking at Quarter 4 as do or die," Gothie said. He then mentioned two price hikes in newsprint which, according to Mr. Gothie, will essentially raise the price of newsprint by 10 percent.

"WE're proposing these things we propose because we have a severe problem on our hands," Gothie said, "and we have to do something about it."

He characterized JRC as being in "survival mode" with its economic status.

He then presented a "proposal" that essentially was a request to extend the current Guild contract for another year, but with open-ended stipulations that call for the possibility of salary cuts, health care premium increases to Guild members and furloughs that would amount to two weeks of lost pay for Guild members.

The Company has tied these addendums to its request in with identical cost-cutting measures that would affect management workers ... though it didn't specify who or how many would be involved.

In fact, all of the addendums weren't detailed, and the Guild Bargaining Committee is considering the package to be a non-starter of a "proposal."

A copy of The Company's "proposal" is on the back of this report.

We are calling on The Company to come back with a more detailed and logically structured contract proposal rather than what they have presented to this point. We have scheduled another session for Oct. 29 at 10 a.m. Any and all Guild members are welcome to the meeting in the Daily Times Building conference room.

Thank You,

Guild Bargaining Committee

October 9, 2009

Dear Guild member,

Philadelphia Newspapers this morning reiterated its stance that it is not ready to discuss economic issues with the Guild and that such a position was consistent with past bargaining. The Guild reminded the company that its first bargaining proposal three years ago was to freeze our Pension Fund, which is certainly an economic proposal. When the Guild asked when the company would be prepared to discuss economic issues, it had no response. After the Guild told the company that its proposals to outsource our jobs, potentially dissolving the bargaining unit, and eliminate seniority protection were nonstarters, there was a reasonably productive discussion of less significant contract clarification issues, such as incorporating the new sick time policy into a new agreement, allowing new hires a personal day, and agreeing that members must file expenses within 30 days. The employer agreed to revise a number of its proposals to clarify its intent.

The Guild made it clear to the company the importance of it adopting a rehabilitation plan for the Pension Fund and paying the fund money it owes for severance payments made to our colleagues who were laid off, both involuntarily or voluntarily, last year.

In response to the numerous members who have suggested that we bargain with the senior lenders, we can report that discussions with the senior lenders have been initiated. The Guild took the same position with the senior lenders, as it has with Philadelphia Newspapers, requesting a three-year contract extension with no layoffs for the duration of the agreement. Recent developments in the bankruptcy case make it unclear as to exactly who will ultimately run the newspapers. No matter who prevails, the Guild is prepared to negotiate to reach a fair contract that protects our jobs, our wages, and our standards of living, none of which led to the bankruptcy filing, nor will prevent whatever company emerges from seeing ongoing profitability from the Inquirer and Daily News.

The next bargaining session with Philadelphia Newspapers is Wednesday afternoon.

In solidarity,

The Bargaining Committee of the Newspaper Guild of Greater Philadelphia Local 10

If you have any questions, please contact the Guild office at 215-928-0118 or Executive Director Bill Ross at 267-240-8540 or BRoss@local-10.com.

October 5, 2009

Dear Guild member,

The Guild Bargaining Committee was disappointed that Philadelphia Newspapers was not prepared to present economic proposals at our bargaining session this morning.

After our first bargaining meeting Sept. 25, when the company presented its contemptible list of non-economic proposals, such as the ability to outsource all of our jobs, eliminate seniority, and further decimate our contract, we demanded the company’s economic proposals. Not only was the company not ready to discuss economics today, but they said they would not be prepared for our scheduled meeting Friday.

We told the company that if that was the case there was no reason to meet on Friday. The company said there were still plenty of non-economic issues they had presented to discuss. The Guild had an answer to their proposals. “No.”

As you know, our current contract extension expires Oct. 31. The company’s failure to submit an economic proposal more than 30 days after the original expiration date of the contract is unacceptable to the union. If the employer continues this bargaining strategy, Guild membership should be prepared to defend our contract and fight for our futures.

On a positive note, the company’s out of town lawyer, brought in at great expense for a meeting for which management was ill prepared, was free to catch an earlier train back to New York.

In solidarity,

The Bargaining Committee of the Newspaper Guild of Greater Philadelphia Local 10

As usual if you have any questions, contact the Guild office at 215-928-0118 or Administrative Officer Bill Ross at 267-240-8540 or BRoss@local-10.com.

September 25, 2009

This is Keeping it Local? Company Seeks to Outsource Jobs, Destroy Contract.

Dear Guild member,
This morning Guild leadership sat down to engage in collective bargaining negotiations with representatives from Philadelphia Newspapers. The Guild committee was astonished that the company was not prepared to present any economic proposals. Even worse were the company’s non-economic proposals, which would decimate our contract and threaten all of our jobs. Philadelphia Newspapers’ very first proposal was that the Guild give the company the right to outsource every bargaining unit job.

So much for Keeping it Local.
This pattern was repeated throughout the company's proposals, which include:
-Eliminating seniority in the event of layoffs.
-Establishing performance evaluations that could lead to discharge.
-Eliminating benefit programs such as 401(k) and FSA accounts with 60 days notice.
-Forcing employees to forfeit unused vacation time at the end of each year.
-Securing the right to deny consecutive weeks of vacation.
-Severely limiting employees’ abilities to perform outside work.
-Reducing post-layoff callbacks from 12 to 6 months.
In short, the company’s plan would eviscerate our contract in the name of creating a "modern" business and wipe out all of the gains we have made in 20 years.

If this is the future, we don’t want any part of it.
The company acknowledged that its non-economic proposals would be painful and difficult, and promised that its economic proposals would be painful, too. Already in its bankruptcy filing, the company has revealed its plan to withdraw from our pension plan without paying any withdrawal liability.

Three years ago the Guild made significant and painful concessions that have saved the company well over $9 million. They were efforts to help the new ownership succeed. It is time for the company to ackowledge and respect those sacrifices.

In the past three years we have lost close to 300 members. Our remaining brothers and sisters have shouldered additional responsibilities, working harder than ever to fill the void of their departed colleagues. Meanwhile, management ranks have been enhanced and senior management lavished itself with unconscionable bonuses and raises on the eve of bankruptcy.

Unlike the company, the Guild was prepared to bargain all issues -- including economics. We proposed a three-year contract extension with a wage re-opener after the first year and no layoffs for the life of the contract.

We are scheduled to meet again with Philadelphia Newspapers on Oct. 5. We have informed the company that it should be prepared to bargain economic issues at that time. It is time for the Local Ownership to present realistic contract proposals, and it's time for the Guild membership to be prepared to fight for our futures.

In solidarity,
The Bargaining Committee of the Newspaper Guild of Greater Philadelphia/CWA Local 38010
If you have any questions, please contact the Guild office at 215-928-0118 or Administrative Officer Bill Ross at 267-240-8540 or Bross@local-10.com

August 21, 2009

The Local Ownership should stop spinning and start bargaining.

Dear Guild member,
As we advised you in our last bulletin, the Guild filed an Unfair Labor Practice Charge with the National Labor Relations Board last week as a result of Philadelphia Newspapers' refusal to bargain over the terms of a new collective bargaining agreement. The Employer's proposal that we extend our agreement for 30 days, without any disclosure of its bargaining position, and without any commitment that there would be no additional concessions was unanimously rejected by the Guild Executive Board. Our members have cooperated with Local Ownership, and have already provided substantial savings in a genuine effort to assure the continued viability of the newspapers. In return, all we asked is that our members be treated with respect and candor. Now that Philadelphia Newspapers has submitted its Reorganization Plan to the Bankruptcy Court, it is apparent that the Local Ownership intends to seek further concessions from the Guild in order to maintain control of the newspapers.
In the Local Owners' disclosure statement and related documents filed last night (Docket # 946), the Local Owners propose rejection of all executory and unexpired contracts -- THAT INCLUDES OUR CONTRACT . (Section 6:01 of the asset purchase agreement.)
At Section 8.1, the Local Owners propose that they be relieved of any obligation to retain employees on layoff and disability leave, including workers compensation leave;
At Section 8.2, the Local Owners propose that they "will cease participation in any benefit plans"…unless they specifically agree to assume them, including COBRA liability and obligations;
At Section 8.3, the Local Owners propose that their "past, present, current or future liabilities or obligations … including without limitation any withdrawal liability … with respect to any multi-employer plan…" -- THAT INCLUDES OUR PENSION PLAN -- be eliminated.
As all of you know, the financial difficulties that confront our newspapers are neither caused by, or result from our contract. While our industry is facing challenges, and other newspapers across the nation have filed for reorganization under the bankruptcy law, none of those involve a situation like ours, in which the newspapers were operating at a profit. In those cases, as part of the reorganization plans, the unions involved agreed to contract changes that were similar to the changes we have already agreed to provide our employer. In those cases, unlike ours, the employers disclosed their plans to the unions and sacrifices were shared across the board. In most of those cases, new management was put in place.
The Philadelphia Newspapers bankruptcy has devolved into a mess of unparalleled dimensions. Literally millions of dollars in legal fees have been wasted over nonsense that has absolutely nothing to do with the prudent management of the newspapers, or a plan to meet the myriad challenges that face our industry and the future of the Philadelphia Inquirer and the Philadelphia Daily News. Tierney and his lawyers claim that local ownership is some kind of magic that will save the day. As far as we are concerned, effective and honest management is what is required. A management that asks its employees to give up, or in our case defer, wage increases and then lavishes itself with outrageous raises and bonuses on the eve of bankruptcy is neither effective or honest. A management that refuses to bargain and will not disclose its bargaining goals is not worthy of our trust.
The senior lenders have filed a motion with the Bankruptcy Court requesting approval to begin discussions with all of the labor unions. They have also asked the court to allow them the opportunity to put forth their reorganization plan. Isn't it ironic that the creditors are willing to bargain and yet the present local ownership is not? If the Court grants the senior lenders' motion, we will at least know who they are and can better understand how they plan to proceed. They have already stated in open court that they intend to continue to publish both newspapers. They have already acknowledged that the enterprise is more valuable if both papers continue to exist. The Local Owners continue to create a doomsday scenario of wage and benefit cuts we would face under the senior lenders' control, and yet remain silent when we have repeatedly asked what they have in store for us.
Bargaining is a process. A process that involves give and take. It is not a game of: "Trust us because we're local ownership." As you heard this morning, Tierney will be hosting a series of Q&As with employees next week. The questions we believe are of paramount concern to our members include:
Does the Local Ownership plan to slash our wages?
Why did the Local Ownership propose to be relieved of its obligations under our pension and health & welfare funds?
Why hasn't Local Ownership bargained with our union?
Why doesn't Local Ownership make a commitment that it will not cut our wages and will pay what is necessary to keep our pension and health benefits safe?
Earlier this week we provided our evidence to the NLRB in support of the unfair labor practice charge. Our legal counsel anticipates that the Regional Director will complete its investigation sometime in the next week. Since the facts are indisputable we anticipate that the Regional Director will issue a complaint and prosecute the case if Philadelphia Newspapers persists in its unlawful refusal to bargain. If the bankruptcy Court grants the senior lenders permission to begin discussions with the unions, we will participate.
The Guild has only one objective -- to protect your jobs and the terms and conditions of employment we have fought to achieve over the past several decades. We can not decide who will ultimately manage the newspapers. Owners come and go. However, the Guild and its members remain. It is your talent and skill, as journalists, advertising salespeople and circulation representatives that assure that the newspapers are successful and profitable.
The Local Ownership's propaganda would have you believe that the company's plan will soon be approved. However, less than a week ago, an attorney for the senior lenders said the terms of the plan were a "nonstarter."
The Local Ownership says it has $52 million ready to reinvest in the company. According to company counsel, the new investors will not deliver those millions unless new agreements can be reached with the unions.
This union is only interested in a contract that protects our wages, benefits and standard of living. As always, our strength is our unity.
In solidarity,
Bill Ross, Administrative Officer, Dan Gross, President and the Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010.
If you have any questions, or concerns please contact the Guild office at (215) 928-0118 or Bill Ross at (267) 240-8540 or Bross@local-10.com.

August 12, 2009

Dear Guild member,
As we advised you in our last bulletin, on Monday the Guild Executive Board informed Philadelphia Newspapers that its request for a 30-day-extension of our contract prior to any collective bargaining negotiations was unacceptable. Our refusal to extend the contract on the basis proposed by the company was based, in part, on the June 16 testimony in federal court of Richard Thayer, PN's Chief Financial Officer, in which he maintained the company would not engage in collective bargaining with any of its unions until its reorganization plan is submitted. The plan is scheduled to be filed on August 31, the same day our contract expires.
In a court filing last week, the company requested an additional 60 days to submit its plan. The company's obligation to bargain with us is independent of the bankruptcy.
On Monday, we renewed our request to immediately commence collective bargaining. The company did not respond. This morning we directed our attorneys to file an Unfair Labor Practice charge with the National Labor Relations Board as a result of the Employer's refusal to bargain.
The charge was hand delivered this afternoon to the Philadelphia Regional Director of the NLRB.
We are concerned that Philadelphia Newspapers delay of bargaining and its failure to disclose its bargaining proposals are tactics designed to leave the Guild membership with no leverage in the event it submits a plan that includes contract concessions and that plan is accepted.
In bankruptcy court yesterday a company attorney informed the court that all but one of its unions had agreed to 30-day-extensions. Our counsel addressed the court that the Guild was the group that had not signed on as we believe it is in our members' best interests to begin the bargaining process at once.
In solidarity,

Bill Ross, Administrative Officer, Dan Gross, President and the Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010.
As usual if you have any questions, please do not hesitate to contact the Guild Office at 215-928-0118 or Bill Ross at 267-240-8540 or bross@local-10.com.

August 10, 2009

Dear Guild member,

As we advised you in our last bulletin, on Thursday night, Philadelphia Newspapers asked the Guild to enter into a 30-day extension of our contract, which is set to expire at midnight on August 31. This afternoon the Guild Executive Board met to review the company's request.

After extensive discussion and consultation with our legal counsel, the Executive Board informed the company that we believe its request is premature because there have not been any contract negotiations to date despite our repeated offers, since February, to begin bargaining.

Both the company's request to extend, and its failure to begin bargaining leads us to suspect that the company is unwilling to publicly disclose its bargaining position at the present time. We have been informed that top management will seek substantial contract concessions.

We have given enough.

It is our position that during the last three years we have lost 300 members, frozen our pension, and agreed to other contract changes that have helped the company.

At this time our bargaining goals are to preserve our terms and conditions of employment and protect against further erosion of our membership.

We notified the company that we are prepared to begin bargaining immediately. We will inform you of the company's position as soon as we receive a response.

In solidarity,

Bill Ross, Administrative Officer, Dan Gross, President and the Executive Board of the Newspaper Guild of Greater Philadelphia/CWA Local 38010.

As usual if you have any questions, please do not hesitate to contact the Guild Office at 215-928-0118 or Bill Ross at 267-240-8540 or bross@local-10.com.

Dear Guild member,
As you know, our contract with Philadelphia Newspapers LLC will expire at midnight August 31st.
The Guild Executive Board has been actively preparing for negotiations and has also prepared for contingencies in the event negotiations are not concluded prior to the contract expiration. We want to apprise you of the actions we have taken to date and our plans for the upcoming negotiations in this memo. We will also address the rumors and misinformation circulating in the building about the contract, the bankruptcy proceedings and how all of this impacts on the upcoming negotiations.
Even though Philadelphia Newspapers filed a petition in bankruptcy, our current collective bargaining agreement is in full force and effect. The Employer did not file a motion to void the contract. Therefore, all of the terms of our agreement are in effect, including the $25 wage increase that is scheduled to start on August 1st.
We reminded the Employer of this obligation and have been informed that payroll has been notified. We anticipate that the salary increase will be administered without any problem, however, if you do not receive the raise in your August 14th paycheck, please notify the Guild Office immediately.
We have notified the Employer of the contract expiration and requested that negotiations for a successor agreement begin. To date the Employer has not agreed to commence collective bargaining. We will renew our request for the scheduling of negotiations. We will keep you advised of the Employer's response. If the Employer agrees to begin bargaining and we are unable to complete the negotiations prior to the contract expiration, we are prepared to continue to bargain for a reasonable time until we come to agreement. Our present terms and conditions of the contract will continue in effect until a new contract is negotiated or until we reach a bargaining impasse.
Rumors have been circulating around the building that the Employer's bankruptcy will require the Guild members to make major concessions in order for the newspapers to continue to operate. Our situation has been compared to the bankruptcies of other newspapers in Detroit and in Minneapolis. Such comparisons are not accurate and our circumstances are not comparable. For example, the recent concessionary contract in Minneapolis involved some of the changes we had already agreed to in our last round of negotiations to help Philadelphia Newspapers get its fiscal house in order. Our newspapers are profitable, Philadelphia Newspapers' financial problems are not because of our contract. The Employer's problems are a result of its excessive debt and poor management decisions.
Everyone involved in the bankruptcy, both the Employer and the creditors agree that the Philadelphia Inquirer and the Philadelphia Daily News are more valuable as viable ongoing enterprises. No one has suggested that either of the newspapers fold. We are currently waiting for Philadelphia Newspapers to file its reorganization plan. At this point we do not know whether Philadelphia Newspapers or the lenders will emerge as the controlling party. Whoever prevails will have the obligation to bargain with us in good faith until a new contract is achieved. Neither the current management or the lenders want to step into a situation involving a labor dispute with the Guild.
This is not a time for the Guild or its members to be fearful. We have acted responsibly and will continue to act in the best interests of our members. Our contract demands are reasonable and our goals to retain a fair contract and improve the standard of living for our families are achievable. Now is the time for all of us to band together and speak with one voice.
In solidarity,

Dan Gross, President,
Bill Ross, Administrative Officer,
and the Executive Board of the Newspaper Guild Local 38010

May 29, 2009

Dear Guild member,

We would like to update you on recent arbitrations and grievance activity at both Philadelphia Newspapers and in the Journal Register Company units.

Arbitrations:

Congratulations to Linda LaRose, an advertising artist who was unjustly suspended without pay in 2006 and later terminated for allegedly posting fliers mocking Philadelphia Newspapers CEO Brian Tierney in the Broad Street building. LaRose was fired without good and reasonable cause, ruled an arbitrator, and this month was awarded reinstatement and full back pay. If you see Linda, please welcome her back to work.

Frank Leonetti, a part-time mailer at the Delaware County Daily Times was recently awarded back pay and increased hours by an arbitrator. The Guild had grieved over Leonetti’s regular hours being reduced and given to a newer and lesser-paid employee.

The Guild is awaiting an arbitrator’s decision on the improper demotion and subsequent termination of Inquirer sports columnist Stephen A. Smith. Over two days this month, an arbitrator heard arguments in the case from the Guild and from PN. We anticipate a positive outcome and hope to welcome Stephen back to work soon.

Grievances:

The Guild has filed a grievance over the hiring of Paul Moore as an exempt editor in the Inquirer newsroom. Last year a Company official told the Guild that there were too many managers, not too few, at the Inquirer, which has lost more than 100 members through layoffs. Moore is replacing longtime Guild member Terry Bitman as assistant metro editor, a position that through established past practice is a Guild job. The Guild position is that Moore is welcome as a member but should not be an exempt manager.

The Guild has filed a grievance over a leave of absence request by Inquirer reporter Carlin Romano that was denied by PN. According to our contract, an unpaid leave is to be granted “if practicable.” The Company deemed Romano’s request, not practicable, despite having recently encouraged another Inquirer reporter to go on a similar leave.

We thank the Guild's Executive Board and Attorney Neal Goldstein for their success and continued determination to defend the rights of our members and preserve and protect our collective bargaining agreements.
In solidarity,

Dan Gross
President
TNG-CWA Local 38010
DGross@local-10.com

Bill Ross
Administrative Officer
TNG-CWA Local 38010
BRoss@local-10.com

Your source for Guild news and more.

PNI Execs Got Bonuses Before Bankruptcy

March 31, 2009

The owners of the Philadelphia Inquirer and the Daily News are seeking bankruptcy protection but still handed out bonuses to top executives. And published reports claim the company owes the city of Philadelphia $450,000 in taxes. Read more...

March 30, 2009

Subject: Phila Newspapers Execs turn your $25 raise into their Christmas bonuses

Dear Guild member,

Three months after Philadelphia Newspapers pressured the Guild and its other unions to postpone a $25 raise, its three most senior executives received a total of $650,000 in bonuses, Philadelphia magazine reported over the weekend. In December, Brian Tierney, Philadelphia Media Holdings CEO, received a holiday bonus of $350,000, while Daily News Publisher Mark Frisby and Richard Thayer, Chief Financial officer both received payments of $150,000 the magazine reports. PMH Chairman Bruce Toll confirmed the bonuses for the magazine. The Guild has learned that other senior managers also received year-end bonuses and is working to uncover more information.

Surely by December PMH knew the company would soon declare bankruptcy, as it did last month, so the year-end cash rewards are shocking.

Last summer your Guild officers stood before the membership and encouraged members to vote to delay a $25 raise we had bargained in 2006. The company laid out a dire financial picture which painted any savings as vital to the future of the organization. We asked you to sacrifice what you had earned in the belief that it was for the good of the company. Clearly we were more concerned about the company than the senior management who rewarded themselves with increases totaling more than $400,000 (The three agreed last month in bankruptcy court to roll their salaries back) and as we have now learned, cash bonuses of at least $650,000.

Please remember that unlike many of the other unions under contract with PMH, the Guild did not forgo the $25 increase last August, rather voted to delay the increase until August 1, 2009. In light of those raises, and this weekend's Philadelphia magazine report, we regret having encouraged members to postpone your increase.

As our contract is up on August 31, 2009, we expect to sit down with the company in bargaining toward the end of April. Just as the company is fighting for its survival in bankruptcy court, we need Guild members to stand up for our survival. We will work hard to preserve, protect and better our jobs, wages and our working conditions. But it can't be done without the commitment and dedication of the entire membership. When better a time to unite then in the face of the company's shameful behavior?

For those who have not yet read the story, here is a link:http://blogs.phillymag.com/news/2009/03/27/breaking-inquirer-ceo-tierney-bagged-350000-bonus-before-bankruptcy/

If you have any questions or comments, please contact,

Bill Ross Dan Gross

Administrative Officer President

bross@local-10.com dgross@local-10.com

215-928-0118 215-868-9049

267-240-8540

March 10, 2009

An important step toward restoring balance and fairness to our economy was taken today &minus the Employee Free Choice Act was introduced in the House of Representatives and the Senate.

Now that the fight has moved to the halls of Congress, we need to take our campaign to the next level &minus and give more workers a shot at the American Dream.

Congress will debate and vote on this important bill soon. Your senators and representative need to hear from people back home immediately &minus they're already hearing from corporate interests.

Ask Rep. Fattah, Sen. Casey and Sen. Specter to actively support the Employee Free Choice Act.

With the most pro-worker Congress in years, and President Obama committed to the cause, this is our best chance yet to pass this bill. But it's anything but a done deal.

Corporate special interests are twisting arms, spending millions on misleading ads and spreading lies and propaganda to block the bill. We've got to put relentless pressure on members of Congress who haven't signed on &minus and make sure those who support the bill stay strong.

There's not a moment to lose &minus email Rep. Fattah, Sen. Casey and Sen. Specter right now!

With your help, we have joined with organizations across the country in rallying legions of activists. Together, we collected over 1.5 million signatures supporting the Employee Free Choice Act.

And during the February congressional recess, many of us delivered signatures directly to lawmakers in their home offices.

Now that the bill has been introduced, it's time for Rep. Fattah, Sen. Casey and Sen. Specter to hear directly from you. The stakes couldn't be higher &minus giving more workers a fair chance to bargain for better pay, benefits and job security will help restore the struggling middle class and make the economy work for everyone.

In solidarity,
William M. George
President, Pennsylvania AFL-CIO

P.S. It's been two years since corporate lobbyists undermined the middle class and blocked this bill. They were backed by the same union-busters and greedy CEOs who ran this economy into the ground &minus and they will stop at nothing to keep workers from getting a fair shake. Send your message today!

Subject: Newspaper Guild appointed to creditors committee in both the Philadelphia Newspapers and Journal Register Company bankruptcies. March 3, 2009

We are pleased to announce that the Office of the United States Trustee yesterday appointed the Newspaper Guild/Communications Workers of America to the Committee of Unsecured Creditors in the Philadelphia Newspapers bankruptcy, filed in Philadelphia, and this afternoon to the creditors committee in the Journal Register Company bankruptcy, which was filed in New York. In each case, TNG/CWA is one of three parties to the committee.

The creditors committee does not "run the business" or otherwise control the assets of the debtor's estate. The committee represents the interests of all unsecured creditors and attempts to maximize recovery for all unsecured creditors in its negotiations with the debtor, the secured creditors, and other parties in the case. Much of what the committee reviews and does is highly confidential and cannot be disclosed to persons other than the actual committee participants.

In order to aid the unsecured creditors committee in accomplishing these goals, the Bankruptcy Code specifically sets out certain duties and powers of a committee. The Bankruptcy Code specifically provides that the tasks of the creditors committee include:

1. Review the progress and status of the case and discuss the same with the debtor. Also, the debtor is required to file periodic financial reports with the Court and the Office of the United States Trustee. These reports should provide valuable information for the committee.

2. Investigate the financial condition of the debtor, the operation of the debtor's business and the desirability of the continuance of any or all parts of the business.

3. Participate in the formulation of a plan of reorganization.

The Bankruptcy Code provides further that the debtor must meet with the creditors committee to transact such business as may be necessary and proper, and that the debtor shall furnish to the committee, upon request, information concerning the debtor's business and its administration. The committee can hire attorneys, accountants or other professionals, who are paid for by the company.

As usual, if you have any questions, please do not hesitate to contact Administrative Officer Bill Ross at the Guild office at (215) 928-0118 or (267) 240-8540.

In solidarity,

Dan Gross
President
TNG/CWA Local 38010
dgross@local-10.com

Subject: BANKRUPTCY UPDATE February 24, 2009

OUR PAY WILL CONTINUE; MANAGEMENT TEAM LAMBASTED FOR RAISES

U.S. Bankruptcy Court Judge Jean K. FitzSimon issued an order today allowing the Company to use its cash to make payroll and cover other operating costs for at least the next two weeks. Another court hearing to address additional financing issues has been scheduled for March 9.

The judge’s order came at the end of a two-hour hearing on the Company’s petition for Chapter 11 bankruptcy protection, which was filed Sunday night.

Although the company got what it wanted – the ability to make payments to ensure the continued operation of The Inquirer, Daily News and philly.com during this bankruptcy process – it came at a brutal price. Attorneys for a group of lenders owed millions of dollars – including Citizens Bank – lambasted the senior management team in court for missing payments while rewarding themselves with raises in December. That was four months after the $25-a-week raise Guild members had agreed to postpone was to have taken effect.

“This is a company in need of parental supervision,” said one of the attorneys, Fred S. Hodara.

Andrew C. Kassner, an attorney representing Citizens Bank, called “unconscionable” the raises to Brian Tierney, CEO of Philadelphia Media Holdings and Inquirer publisher, Richard Thayer, the Company’s chief financial officer, and Mark Frisby, a senior vice president in charge of production and labor issues and publisher of the Daily News. Kassner said lenders found out about the raises – which boosted Tierney’s annual salary to $850,000 and Thayer’s and Frisby’s to $475,000 -- a short time before the Company filed for bankruptcy protection. The Company had rejected lenders’ requests to give up the raises, Kassner said. It was only after the Company made the raises public in bankruptcy filings -- and they were widely reported yesterday and today in local and national media -- that the executives agreed to have their salaries rolled back to pre-raise levels. Kassner credited “the court of public opinion” for that decision.

Lenders’ attorneys were also critical of a loan agreement the Company has been pushing in return for a reduction in its $395 million debt. Under that deal, Bruce Toll, who is chairman of Philadelphia Media Holdings and an investor, would agree to loan the Company up to $25 million. Kassner said a condition of that investment was that Tierney could not be removed as chief executive officer.

Tierney has said repeatedly this week he is not looking for givebacks from the unions, just an opportunity to restructure the Company’s debt. Company lawyers said in court that the newspapers are profitable and expecting profits this year of $25 million.

As for a restructuring plan, Lawrence McMichael, an attorney for the Company, told the judge “we have no great solutions for you right now.”

Attorneys for the Company defended Tierney’s raise in court today by saying he had taken on two jobs for more than two years without a salary increase. Tierney, Thayer and Frisby agreed to give back the raises, said attorney Mark Thomas, because “we think it’s important in this [bankruptcy] case that we are all not distracted” by it.

Both sides did agree on one thing: That the newspapers are vital to this community. Attorneys from all parties said they are hopeful of a resolution that allows the Inquirer and Daily News to keep publishing.

The packed courtroom – dominated by Teamsters and members of the media -- erupted in applause when the judge said she is an Inquirer subscriber.

Anyone with questions or comments is encouraged to call Administrative Officer Bill Ross at 215-928-0118 or email him at his address below or Guild President Dan Gross at 215-868-9049 or dgross@local-10.com.

You can also attend one of three informational and bargaining-proposal meetings scheduled this week at Guild Hall: tonight at 6 p.m., tomorrow at 5 p.m. and Thursday at 5 p.m.

Bill Ross

Administrative Officer

bross@local-10.com

COMPANY: WE’RE NOT GOING AFTER UNIONS

In a meeting with the Company today, Guild officers were assured that senior management has no intention of seeking to reject our collective bargaining agreement during its efforts to secure Chapter 11 bankruptcy protection. Guild leaders were pleased to learn of the employer’s position and look forward to the opportunity to meet with the employer at an appropriate time to resolve contract issues that have been pending for months.

A hearing will be held tomorrow at 11 a.m. in bankruptcy court. Guild leadership will attend the session along with Guild attorney Neal Goldstein. This is a public proceeding open to anyone who is interested in attending. The hearing is in the old federal courthouse at 9th and Market Streets in Philadelphia, Courtroom 3, before U.S. Bankruptcy Court Judge J.K. FitzSimon.

As previously announced, the Guild anticipates soon beginning contract discussions with the Company and had scheduled membership meetings three nights this week to gather suggestions. Those meetings are still on. The first is tomorrow night at 6 p.m. for all editorial members at the Inquirer and Daily News. The rest of the meeting schedule is: Wednesday, 5 p.m., for advertising members; Thursday,5 p.m., for all other departments. Guild leaders will report on developments regarding the bankruptcy at these meetings and in other bulletins and on the Guild Web site as events warrant.

As always, anyone with questions or concerns is encouraged to contact Administrative Officer Bill Ross by calling 215-928-0118 or e-mailing him at bross@local-10.com or contact Guild President Dan Gross at 215-868-9049 or by e-mail at dgross@local-10.com.

Bill Ross

Administrative Officer

bross@local-10.com

February 23, 2009

Dear Guild Member,

As you all should be aware, Philadelphia Newspapers, (“PN”), the owner of the Philadelphia Inquirer and The Daily News, and The Journal Register Company, ("JRC") owners of the Delaware County Times, The Pottstown Mercury, and the Norristown Times Herald, have filed for Chapter 11 Bankruptcy protection.

As hard as it may sound, please stay calm. The companies are still in business, the papers are still publishing and you should still report for work.

Here is what this means to our members and how the filings affect our contracts:

The Chapter 11 Bankruptcy process is intended to permit a company to continue in operation by restructuring its contractual and financial obligations. Because Guild members provide essential services, your wages and benefits under our collective bargaining agreement for services rendered, after the petition was filed, will continue to be honored.

Before PN, or JRC can take any action to modify any of their obligations under our contracts they must negotiate in good faith with the Guild and prove that the contract changes they may seek are necessary to permit the reorganization and prevent the liquidation of the enterprises.

The Guild Executive Board has already taken steps to assure that we obtain all of the bankruptcy filings. We will monitor the proceedings and take appropriate action to enforce our collective bargaining agreements and protect your rights.

Even though a bankruptcy petition has been filed:

* Our contracts remain in full force;
* Your wages and benefits will continue to be paid;
* We retain the right to grieve and arbitrate contract disputes; and
* No unilateral changes to our contracts can be implemented without prior negotiations.

If the Employers request that we meet to negotiate contract modifications, we will, of course, immediately notify you of any such negotiations. As in all collective bargaining situations, we will bring any tentative agreements involving modifications/changes to our contracts to the members for ratification. In addition, we will keep you advised of all developments during the bankruptcy, especially any events that involve the Guild contracts, your rights, and the Employers obligations pursuant to it.

The Guild’s Executive Committee will convene in an emergency board meeting at 10 a.m. Monday and will issue further news as we have it. In the meantime, members may contact the Guild office at 215-928-0118 or Administrative Officer Bill Ross at 267-240-8540 or e-mail bross@local-10.com.

In solidarity,

Dan Gross

President

TNG/CWA 38010

dgross@local-10.com

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