GCI's directors: Starting on the top row, left to right, with powerful executive committee members in boldface: Dubow, Elias, Harper, Louis, Magner, McCune, McFarland, Shalala, Shapiro and Williams.A reader named Parson wrote the following comment yesterday on Gannettoid.com; the comment, apparently concerning The Desert Sun at Palm Springs, Calif., has been reposted on Gannett Blog, here:
I'm number one of the July 9 layoffs here. Can't say how many others will be layed off. I notified management that I had to fly home on Thursday the 9th because my father is passing. That created a dilemma evidently because I wouldn't be there on the 9th. They told me later in the day (today) that I was being let go. The timing sucks. But I really don't have hard feelings towards the company. I know I would have a hard time picking who goes and who stays. My feeling is that it's the right time to leave this industry. What I've read so far online about the severance, or transitional pay is correct. They are outsourcing it to Total Management Solutions. Transitional Pay is only paid if you are eligible to receive state unemployment benefits. You must verify your eligibility for this on a weekly basis.
Crucial unanswered questions
- Will other terms remain the same as in recent layoffs? One week's pay for every year of service, up to a maximum of 26 weeks?
- Is health insurance included at company rates, or will you be required to go on more expensive COBRA plans immediately?
Total Management Solutions: Start reading everything about its supplemental unemployment benefits plan, or SUB-Pay Plan, in the FAQ. Note its industry client list for sub-pay services.
What you can do
Once we have confirmed this move, there is no time to waste. Anyone in a position to do so, please write to the following people. Please don't dismiss these ideas out of hand; recall what happened to the auto industries CEOs, after they flew corporate jets to Washington, D.C.
GCI's board of directors
Perhaps the only hope would be Neal Shapiro, who joined the board in October 2007 (circled photo, above). He is CEO of public broadcasting affiliate WNET-TV of New York. Shapiro is a former NBC News president, and is the only member of the board with true journalism credentials.
U.S. Congress
Write to your representative in the Senate (list here) and the House (list here). Plus, contact the chairmen of the following two committees, which have broad jurisdiction over Corporate America. Ask these panels to consider convening an investigation. Rep. Henry Waxman, D-Calif., is likely your best ally. He hates this stuff, and acts with speed.
Senate
Commerce, Science & Transportation
Chairman: Jay Rockefeller, D-West Va. (left). He represents one of the nation's most impoverished states, so should be sympathetic.Ranking Republican: Kay Bailey Hutchison, R-Texas.
List of all members.
Committee contact information, here.
House
Energy and Commerce Committee
Chairman: Henry Waxman, D-Calif. (left). He is a total pitbull once he sinks his teeth into a cause.Ranking Republican: Joe Barton, R-Texas.
List of all members.
Committee contacts. I am unable to find this.
State, local officials
Contact your governor's office (list of governors), as well as your mayor or other local head of government.
Please post your replies in the comments section, below. To e-mail confidentially, write gannettblog[at]gmail[dot-com]; see Tipsters Anonymous Policy in the green rail, upper right.
Now I better understand the timing on Robin Pence: she knows House Energy and Commerce. She's probably cozy with Joe Barton's staff. Pence is a major hired gun.
ReplyDeleteWow.
Publishers: Many, many of you are good, honorable men and women. Please do the right thing: Do not sit on this information a moment longer. Write to me, please. I will protect you. I have never given up a source. This is wrong. You know this.
ReplyDeleteJim:
ReplyDeleteI'm confused. What, exactly, do you think people should complain about? Is the use of a SUB plan in this way illegal, or completely objectionable, or what?
As a stockholder, I would like the SEC to interview directors about what Corporate disclosed to the board about Dubow's health since approximately fall 2007, and about all major Gannett Management Committe decisions since then. Those would include this purported severance plan.
ReplyDeleteAlso: the board's decision to dismiss my formal ethics complaint against Dubow, and the manner in which that was made public. SEC enforcement might want to consider whether Gannett has complied with the 8-K filing requirements.
It's not a severance package per se any longer, or salary continuation. The formal Gannett relationship ends immediately. COBRA kicks in immediately.
ReplyDeleteTo get around state laws regarding unemployment and still getting paid, it's called something new. "Lovely Parting Gift" or something similar. If you stop qualifying for unemployment, you stop getting the lovely parting gift as well.
Makes sense for the company to do it this way, it costs less. Remember, they don't have to do squat.
SEC? Right after they take care of Madoff, Jim. You'll wait 20 years to see something happen.
ReplyDeleteNo one is going to investigate Gannett, Jim.
ReplyDeleteThere are such bigger fish to fry, one lousy little company with only 40,000 employees doesn't even make a blip on a screen.
The severance package could go down to a handful of 2-for-1 coupons at Dennys and Waxman wouldn't care. It's still only a 1-3% workforce drop at one company in an economy that is showing nearly 10% unemployment.
Yes I think it sucks, and I'm probably going to get those coupons in three months when I get eliminated.
But don't fool yourself - between health care, GM, Chrysler, North Korea and that little Iraq thing still going on - no one in capital city cares what's happening at Tyson's Corners unless the Galleria asks for Chapter 11.
But:
ReplyDelete1. Lots of pols would like to settle scores on publishers too weak to return fire down the road.
2. Makes good political theater, with a built-in, plugged-in constituency: journalists who fear Gannett will lead their own employer astray.
3. Plays into hands of opponents if media concentration.
4. Stranger things have happened. Just takes one person to drop a dime on a day when Waxman is having a bad (non) hair day.
Jim... I hate this as much as the next guy. But the Denny's comment is right on... Gannett doesn't owe anyone a penny. Many companies lay off with no severance and there's nothing that you can do about it.
ReplyDeleteAs a shareholder, I'd like to see the entire exec board sacked because they had to green light the debt situation that the company is in. Specifically Dubrow should have his contract voided for professional malpractice (and hace his Golden Parachute of $30 million yanked) He had to recommend this debt repayment plan by 2011 to the board based on the old growth rate. Was any other expert asked to weigh in?
ReplyDeleteThey need to be held accountable for the actions that are resulting in these lay-offs
I think these are great suggestions. I would also urge the laid-off to contact their attorneys general. This is an issue because in some states you can't get unemployment if you are still drawing any money from an employer.
ReplyDeleteThis is all very weird and shady.
And confusing and bureaucratic. I think they hope people will be too baffled to actually apply to get any money.
This is the kind of work that makes me very sad Jim is giving up the blog.