. . . unions representing about 1,400 employees at the money-losing Detroit newspapers are willing to endorse a new two-year contract that includes 4.5% wage cuts for employees making less than $35,000 a year. Those earning more than $35,000 will see their wages reduced 6.5%, according to this Crain's Detroit story.
Union members are scheduled to vote on the new contract tomorrow. The last one expired Oct. 15 after being extended several times.
No word on whether Detroit Media Partnership CEO Susie Ellwood and her team will be taking similar pay cuts. GCI controls the DMP, a joint operating agency that handles advertising sales, circulation and other business functions for GCI's Detroit Free Press and partner MediaNews Group's Detroit News. The two dailies maintain separate, competitive newsrooms.
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| Dubow |
A wage cut that big on someone making only, say, $30,000 reduces their pay $1,350. By contrast, GCI CEO Craig Dubow got a 52% raise in 2009, to $4.7 million vs. $3.1 million in 2008. (Annual pay for company's top five executives.)
It's unclear whether these union concessions are in lieu of layoffs and other job cuts GCI just imposed on employees at dozens of other U.S. newspapers. In all, the company eliminated 243 jobs, according to Gannett Bloggers' reports for 62 of 81 dailies.
Earlier, the DMP had sought more onerous terms: A 12% pay cut, a wage freeze and medical coverage cuts.
Union leaders agreed to the compromise after management allowed them to look at the books. "We are satisfied that the claims the company made about its financial condition are true and some concessions are required," the union said in a communication to members, Crain's said.
With this in mind (and Jim's earlier piece about last year's bonuses) I, for one, will be watching VERY closely for the results of this year's round of bonuses with very narrowed eyes. I'd be surprised if others won't be.
ReplyDeleteWanna bet on what kind of pay cut Hunke, to whom the DMP results roll up, will be taking? I bet $20 that, despite problems in Detroit and at USA Today, Hunke doesn't take home a nickel less than he did last year.
ReplyDeleteThe compensation system is truly broken beyond repair.
Did someone say Strike?
ReplyDeleteWhen was the last time Gannett dealt with a major strike?
ReplyDeleteWithout any indication of the mean, median, mode or range of wages of the union membership, the impact of this is ridiculous to try and judge.
ReplyDeleteFor instance, if 1400 employees get the example $1350 wage drop, Gannett saves $1.89 million, vs the $1.6 mil raise mentioned for Dubow.
I'm no fan of Dubow, but Detroit hasn't done shit for the bottom line of the company. What other major site had given up printing several days a week because they couldn't make it work? Even the mayor of Detroit is closing down parts of the city that they can't service, why should Gannett waste more money there?
It's time Michigan, Ohio, Wisconsin, Iowa, Missouri and even frickin Guam catches a break and we dump this albatross or close it down. Why do we have to lay off people in the community division because Detroit and USAT have been immune to cost cutting?
The rich get their ice summer and winter, the poor only get the shavings from the chopping block.
ReplyDeleteThat Craig! Nobody can say that boy doesn't know how to load up the loot!
ReplyDeleteToo bad he's been a grossly ineffectual CEO.
But no matter....He'll be retiring with more than a dozen of his peons make in their lifetimes!
And wanna bet how many corporate boards he ends up on...You know a few hundred thou here and there to keep all the toys afloat.
It does not matter if the paper is making money or not. Phoenix makes tons of cash but company has forced unions to take a 5%, 6.5% and $0.25 per hour cut in pay plus loose a 4 week of vacation. Pressmen union is fighting this via the N.R.L.B. Gannett is one union busting machine.
ReplyDelete1995-97 in Detroit
ReplyDeleteThis is why unions are becoming worthless. Most people can get a deal this raw without paying union dues.
ReplyDeleteGranted, Detroit is special because it's a money losing property, but I'm not in a union and haven't been hit this hard yet. Trouble is big money people have so thoroughly manipulated working class folks that GCI could probably easily deal with a strike. There are tons of newspaper people out of work, so they could offer even lower wages and likely get people to take the jobs. Unions only work if there's solidarity in a workforce, and the ultra-rich have convinced even many middle-class people that they should sell out their peers.
Craig is decidedly worthy of a bigger raise and bonus this year. Why? Well, he put in about three to four months more this year than last year, when he was out recovering from back surgery. While his chauffered limo (make that Towncar!) awaits outside, Craig is rolling through the Crystal Palace inspiring the troops. He and Gracia are almost as visible Dave Hunke and senior editors articulating the big transformation plan for the future. I say give all of them raises and big bonuses. Hire more vice presidents. Give the secretary turned director of employee engagement a big staff so she can interact with the rest of us. Let the looting and good times roll for senior managers!
ReplyDeleteThe sad thing is Dubow and people like Hunke will continue to thrive for the next year or two, at the minimum, no matter how bad Gannett and USA Today fare. Dubow will ride off into the sunset with millions, regardless of performance. Martore will pressure Hunke to do better, and when the paper's fortunes continue to sag, she'll bring some other Gannettoid in to finish the bloodletting and dumb-down the flagship paper even further.
ReplyDeleteHunke told staffers that 100 of 1300 USAT employees got raises this year. Not sure what the point of that was, other than to upset everyone else. He should have taken his six-figure bonus and given everyone a $500 holiday check for putting up with years of no raises and furloughs. How about radically transforming your attitude toward the rank and file, Dave?
ReplyDeleteDirector of employee engagement? Senior editors are disengaged.
ReplyDeleteThe contract in Detroit was ratified this afternoon.
ReplyDeleteCould someone in Detroit provide an email or phone for a Guild contact?
ReplyDeleteThanks.
Hunke's comment about 100 lucky folks who got raises was probably the stupidest comment ever uttered in that auditorium. If that was not evidence that he is too inept to lead USAT, I don't know what is.
ReplyDeletePlease, Dave, next time just keep it to yourself. Every time you open your mouth, the rest of us feel worse.
I heard there was a Hunke sighting late last week. Can anyone confirm or deny?
ReplyDeleteAlso - any idea when all this employee engagement stuff will commence?
Guild contact in Detroit is Lou Mleczko, 313 963 4254
ReplyDeleteI made a career decision today. I want to apply for the Assistant Director of Employee Engagement.
ReplyDelete8:07 - God, you're so right.
ReplyDelete