U.S. newspapers President Bob Dickey just sent a memo to employees of his division, which employs about 20,000:
CONFIDENTIAL
TO: U.S.C.P. Employees
FR: U.S. Community Publishing President Bob Dickey
RE: Voluntary Early Retirement Opportunity Program
Dear colleagues:
Today we are offering a voluntary Early Retirement Opportunity Program to 665 eligible U.S. Community Publishing employees who are age 56 with at least 20 years of service, as of March 31, 2012, and who are in certain departments and/or job categories. Eligibility by department or job category varies by each operating unit depending on its needs.
This offer was designed to be as attractive as or better than others in the industry. The Early Retirement Opportunity Program also is the first offered by Gannett since 2008. The offer provides for salary continuation of two weeks’ pay for each complete year of service, capped at 52 weeks, and ongoing health, dental and vision coverage during this period.
Employees who are eligible will have 45 days to accept. At the close of the offer period, Gannett will review acceptances and make final decisions based on the terms of the offer.
As mentioned – the program is completely voluntary for these valued, long-term employees. They have helped steer a strong and steady course for the company for many years, including through recent challenging economic times, and their work is deeply appreciated.
It’s worth noting that while 785 employees meet the criteria, the offer is being offered to 665 employees due to ongoing operational needs at the company. The offer is for U.S. Community Publishing employees only.
The Early Retirement Opportunity Program is one part of our ongoing strategy to transform the company with a focus on remaining the top news and information provider in your market. To accomplish this, it entails a ground-up assessment of our overall structure and resources. At this time we are offering this program instead of pursuing other cost management actions but we cannot rule out other actions in the future.
Please look for a separate letter today from your publisher, who will provide more details about this program and your location.
If you have any questions feel free to contact me or your publisher.
Bob Dickey President/U.S. Community Publishing
CONFIDENTIAL
TO: U.S.C.P. Employees
FR: U.S. Community Publishing President Bob Dickey
RE: Voluntary Early Retirement Opportunity Program
Dear colleagues:
Today we are offering a voluntary Early Retirement Opportunity Program to 665 eligible U.S. Community Publishing employees who are age 56 with at least 20 years of service, as of March 31, 2012, and who are in certain departments and/or job categories. Eligibility by department or job category varies by each operating unit depending on its needs.
This offer was designed to be as attractive as or better than others in the industry. The Early Retirement Opportunity Program also is the first offered by Gannett since 2008. The offer provides for salary continuation of two weeks’ pay for each complete year of service, capped at 52 weeks, and ongoing health, dental and vision coverage during this period.
Employees who are eligible will have 45 days to accept. At the close of the offer period, Gannett will review acceptances and make final decisions based on the terms of the offer.
As mentioned – the program is completely voluntary for these valued, long-term employees. They have helped steer a strong and steady course for the company for many years, including through recent challenging economic times, and their work is deeply appreciated.
It’s worth noting that while 785 employees meet the criteria, the offer is being offered to 665 employees due to ongoing operational needs at the company. The offer is for U.S. Community Publishing employees only.
The Early Retirement Opportunity Program is one part of our ongoing strategy to transform the company with a focus on remaining the top news and information provider in your market. To accomplish this, it entails a ground-up assessment of our overall structure and resources. At this time we are offering this program instead of pursuing other cost management actions but we cannot rule out other actions in the future.
Please look for a separate letter today from your publisher, who will provide more details about this program and your location.
If you have any questions feel free to contact me or your publisher.
Bob Dickey President/U.S. Community Publishing
Sweeten the deal to include free car washes, fuel ups, lunches and grocery deliver for the buyout period for publishers and maybe a few who should have been sacked long-ago will jump too.
ReplyDeleteDo I understand correctly? They didn't offer this to everyone who met the qualification, and they are still making more offers than they intend to accept? You could say, "Yes, I'll take it," only to be told, "Never mind, we're giving it to someone else"? That's just evil.
ReplyDeleteNo doubt your name will then be added to the list of "Old folks who are no longer committed to transformative buzzwords."
Hey, that was supposed to be confidential!
ReplyDeleteGannett -- the king of buzz words. It's sickening.
ReplyDeleteClosing the loop on a comment last week, Anonymous@7:16 wrote Feb. 2:
ReplyDelete"Jim, if there are no buyouts next week, will you and the other person admit you were spreading unconfirmed gossip again?"
Here's four buzzwords for you: calling buyouts (with capital letters) the Early Retirement Opportunity Program. Here's your opportunity: Either take the buyout or be laid off.
ReplyDeleteIs it accurate to call this an Early Retirement Opportunity if those taking it will not receive the same retirement perks and benefits that normal Gannett retirees of age would receive?
ReplyDeleteJim, I was told that the 2008 early retirement buyout was paid for by the Gannett retirement fund and thus cost the company virtually nothing. Is that true? If so, does it dilute the retirement benefits for people still working here?
ReplyDeleteNo Guild members were offered buyouts Indianapolis since publisher said they are in negotiations. Clear violation of the contract and a way to bust up the union.
ReplyDeleteIf I understand this like 1:56 is reading it - does anyone know how the decisions will be made after the March 31 deadline on who is chosen and who is not?
ReplyDeleteWill there be any advantage to getting your acceptance in earlier rather than later (like today!)?
Annual savings if each of the 665 takes the deal, figuring average of $100,000 in wages & bennies: $66.5 million. gannett earnings last year: $458.7 million.
ReplyDelete3;2o there is no advantage. THe entire 45 days ahs to play out. Federal law. Seniority breaks all ties
ReplyDelete3:25 665 people will never take the deal. Maybe 150 to 200
ReplyDeleteHeh 3:11, another reason why no one should be in the union.
ReplyDeleteThis comment has been removed by a blog administrator.
DeleteI'd bet that 665 employees were offered the early retirement buyout out of 785 who generally fit the criteria because the remaining 120 were considered to be indispensable to the company. If so, there's no rush to accept - make the right decision for each of you. It is a good offer, though.
ReplyDelete2:58 why wouldn;t someone get the same retirement benefits. You take the salary continuation and then retire. Don't over complicate it.
ReplyDeleteEROP is a federal term. This is a buyout for a specific group of folks. Perfectly legal and much better than TPP.
3:30 PM, save your spin as the bottom line is this:
ReplyDeleteIf people who take this buyout offer are not eligible to the same benefits and rewards that a typical Gannett retire in their sixties has available to them for the rest of their lives, then this really isn’t an early retirement offer, it’s a flat buyout. One that will cease to pay anything to a solid majority after the salary continuation wall of 52 weeks ends.
Pitching it as Gannett has is disingenuous at best, yet it expects its customers to rely on it as a trusted source for news and information. Funny.
3:50 PM, what benefits and rewards will buyout takers miss out on? I was under the impression that other than my pension and my 401k (which are mine to keep), there was nothing Gannett was planning to chip in with. No one here I can ask for comparison's sake--no one's retired from my site in years. Quit, got fired, died, yes. But worked until a dignified retirement, no.
ReplyDeleteI can add this (but please don't laugh too hard):
ReplyDeleteIf there is anyone left in Gannett who is a member of the old (as in defined benefit) pension plan, you can begin collecting your monthly stipend a month or two after you walk out the door. I accepted a buyout several years ago (nearing 62) and they called me a few months after walking out the door to tell me I could begin collecting my pension. Needless to say, I accepted the offer. They even sent me a check to cover payments back to the day I walked out the door. Overall, a good deal.
If any of you 665 eligibles are 60 or over and on the old pension plan, take the buyout and run out the door...as fast as you can. Good luck to all!
4:35: Did you take the lump sum or were you one of the "really-old-timers" still eligible for the annuity?
ReplyDeleteIt's also possible to draw from the new pension fund (not the old, defined-benefit one) if you go through some gyrations. First, you roll the money over from the pension fund into an IRA. Don't touch it yourself, or it becomes taxable. Have it go directly to the IRA. Then, you can use the IRA money to buy an annuity with a monthly payment to you. You can do this before you turn 59 1/2, the age usually required for an IRA withdrawal without penalty. I did it, and it worked for me. There's another way to do it as long as you withdraw the same amount each month for several years. Check with a reputable financial adviser for details.
ReplyDeleteTake the money and RUN!
ReplyDeleteGannett needs to explain how and when to take the pension money without being penalized before age 62. Same with 401k rollovers. Then overpaid, seldom heard from Roxanne Horning should be on top of this.it affects hundreds of employees who may not know what to do.
ReplyDeleteWhere do you find a financial advisor? Where you bank or an investment company?
ReplyDeleteI love the fact that you have until March 31. This means corp will still get the furlough saving from every employee.
ReplyDeleteIt's Federal law. Why can't you understand that?
DeleteShoulda negotiated for that. Shoulda negotiated for 401(k)'s, shoulda shoulda.
ReplyDeleteReap what you sow - if you ever told management it wasn't in the contract so you wouldn't do it? They're just following your example.
When CWA gave up on my shop, the three of us still left decertified and got the same benefits as non-union, slightly better pay than union... and a hell of a lot of self-respect knowing we would be judged on our own work - not for just showing up.
And yes, I am still bitter that I sent dues to our national offices and got nothing in return. They did make nice contributions to politicians I couldn't stand, though.
If this plan offers "retiree" benefits in health care after the buyout period, that means you can pick up the Gannett health plan at your own cost. Right now that's about $550 a month per person (e.g. you, spouse). That amount is a bit less than many free-market plans. However, if offered, it means you are at least guaranteed coverage if you can afford it. Many insurance companies are reluctant to offer much beyond catastrophic coverage to people 58-65. (Not sure if this deal means you could tap 18 mos. of COBRA after first year.) At the same time, this is the plan in which Gannett dropped BlueCross this year and stuck us with United HealthCare, lesser coverage at higher price.
ReplyDeleteIs Roxanne Horning on permanent vacation or what? What is she getting paid to do?
ReplyDeleteDepending on when your insurance runs out, you may have coverage available under Obamacare. For sure, there is the state high-risk plan pools available now in all states. There is a special set of waivers for those coming off COBRA.
ReplyDelete