25 from newsroom seek buyout

A Journal Sentinel Inc. buyout offer has attracted 25 applicants from the newsroom, according to the company.

The Milwaukee Newspaper Guild has not yet been provided with the names of the applicants. We also don't know how many people applied companywide, although the newsroom response suggests the company met or exceeded its target of 35 to 50.

Friday, Oct. 26, was the deadline for applying for the voluntary buyouts. The company now is in the process of deciding who will be accepted for the buyouts. Employees will be notified in writing that their application has been accepted.

Anyone who has applied may retract his or her application at any time prior to being notified of acceptance. The company has said that once an employee has been notified in writing that the buyout application has been accepted, the acceptance is final.

The Guild's lawyer, Barbara Zack Quindel, had raised concerns with the Agreement and Release form that employees taking the buyout will be signing. Because of the concerns she raised, the following steps have been taken:

• Item 13 about confidentiality has been removed. Quindel raised the point that it is unnecessary, because the agreement has been widely distributed.
• The company has clarified Item 12, the "waiver of re-employment." This is not an outright ban for working again for a Journal Communications company. What it does is establish that we have no recall rights in such cases. In other words, a former employee reapplying to a Journal Communications company will not be given special consideration toward rehiring.

Also, here are answers to a few late questions we received from members.

How will references be handled? Human Resources will not change how it handles references. It will continue to give out only basic information -- dates of employment and confirming that the employee was part of a voluntary buyout.

If I take the buyout and then later I am rehired by the Journal Sentinel, do I retain my seniority and current vacation status? No, because of the interruption in service, you would start at the beginning for seniority and vacation if rehired. You would retain pension benefits you have accrued.

What are the tax implications of taking the buyout? Your lump-sum payment is expected to be paid out in 2007, so it will be part of calculating your 2007 tax return. How much you actually pay will depend on all your other income and will not be determined until you file a return. If you need specific information about your situation, you should consult a tax expert.

More buyout FAQs

In the wake of a Journal Sentinel Inc. buyout offer, Guild representatives met again Thursday with Scott Zantow and Cindy Wargula from the company’s Human Resources department to get answers to a second round of employees' questions about the buyouts. We also are continuing to discuss issues with newsroom managers, international Guild staff and the Guild attorney.

Here are the responses. If you have additional questions, or if you are considering the buyout yourself, please contact a Guild representative.

Will employees hired before 1995 who take the voluntary buyout be paid for 2008 vacation they’ve already earned in 2007? Yes, they will. Employees hired before the merger of The Milwaukee Journal and the Milwaukee Sentinel retain the vacation policy of earning vacation in the previous year, so they have already accumulated vacation for 2008. The payout for those vacation weeks will be included in your last paycheck.

Only some employees hired after the merger are eligible for the buyout, because it is restricted to those with 10 years or more at the Journal Sentinel. Employees hired after the merger are now on an earn-as-you-go vacation policy. If anyone in that group took the buyout, he or she would be paid for any unused 2007 vacation and for Transitional Vacation Account time.

Can we clarify the 100 jobs that were mentioned in one of the company’s news releases? We assume that is the approximately 50 jobs that will be cut with the buyouts, while the rest are jobs that are already vacant. Is that correct? Yes, it is.

Will my boss know if I have applied for the voluntary buyout and then it turns out I'm not accepted? Top newsroom management has not shared names of anyone who has applied. The number of people who apply in the newsroom and elsewhere in the company will determine how many other managers will have to be informed of who is seeking the buyout.

Can employees receive a cash payment or some type of additional benefit if they do not need the two months of health coverage? No.

How will part-time years be counted? What date would be used as an employee’s starting date if they worked part-time before becoming a full-time employee? Who will calculate how much employees can expect in their buyout package in such cases? For full-timers who previously worked part-time, payroll will calculate the years using the pension plan formula. That means years in which you didn’t meet pension requirements, such as working at least 1,000 hours, would not be counted. For a calculation of your years of service, you should call Human Resources. Once you have that figure, you can multiply whole years by two weeks of pay per year to obtain your severance total.

How will employees be notified if they’ve been accepted? How will employees who are not accepted be notified? The company will return a copy of the application, signed by an authorized company representative, to employees whose application is accepted. Those not accepted will be notified by Human Resources.

What criteria are being used to decide who is accepted and who is not and who is making that determination? The company says decisions will be based on “business needs” and determined in large part by who applies for the buyout. “At the end of the day, we need to have a viable business,” Zantow said. While managers would not want the buyout to take so many people from a particular department that it couldn’t function, they say they did not come up with specific guidelines in advance to decide who would stay and who would go.

Is there a number of people or a percentage target number for the newsroom? The company says it does not have a set target.

What is the supplemental tax rate that is taken off the separation dollar amount? 25% federal, 6.5% state, 6.2% Social Security and 1.45% Medicare.

When can employees expect their severance payout after they leave on Nov. 15? "We are going to turn this around as quickly as we can," Zantow said. The company would like to have the money paid out before the end of the year. Wargula said the severance payout will be processed as part of a regular pay period, so it seems likely the severance check would come two weeks or four weeks or six weeks after the Nov. 23 paycheck, which would be the last regular paycheck for those taking the buyout.

Will the company take more then 50 people if more apply for the voluntary program? The company says it will keep all options open.

Is there a hiring freeze since the voluntary buyout was announced? No.

Is the company willing to offer more company-paid medical coverage than the two months that was offered in the initial package? No.

In the case of involuntary layoffs, the company needs to provide 60 days' notice or 60 days' pay. If I am laid off immediately and the company provides me with 60 days' pay, do I have company health coverage for those 60 days? Zantow said he would try to get us an answer.

How can I determine how much I would pay for COBRA coverage? Call Wage Works at (800) 735-7515.

If there were involuntary layoffs, would those be aimed at people with 10 years or more at the Journal Sentinel? Zantow said the company has not discussed the process for involuntary layoffs, but he said it is unlikely that such a restriction would be set.

If I have a health care or dependent care account, if there a chance I would owe money on that? Wargula suggested calling Wage Works, at (800) 735-7515, for that information.

Why were the voluntary buyouts limited to those with 10 or more years at the Journal Sentinel? Because 10 years of service is needed for employees who are 55 and older to qualify for retiree health benefits.

How can I see the release form I'll be asked to sign if I take the buyout? The form is available from the Human Resources office on the second floor.

New faces -- and some familiar ones -- in Guild posts

Jerry Ziegler has returned to the steward leader ranks, swapping Milwaukee Newspaper Guild posts with Greg Pearson for the second time in two years.

Ziegler, an assistant copy desk chief, stepped down after one term as 1st vice president to go back to the steward leader position he previously held for two terms. He will be in charge of contract enforcement, membership, mobilization and stewards for the copy desk, night graphics/design staff, opinions staff, the national desk, newsroom clerks, and local news downtown night reporters and downtown editorial assistants. He replaces Pearson, a day copy editor who returned to the 1st vice presidency he previously held for three terms.

In addition to Ziegler, the Local 51 Executive Board reappointed three other steward leaders: photo editorial assistant Janine Ghelfi, to an unprecedented 12th term representing the downtown photo, features/entertainment, business news and day graphics/design staffs; metro reporter Mark Johnson, to a fifth term representing local news downtown day reporters, Wisconsin news bureaus and the MKE staff; and sports design coordinator Jeff Maillet, to a fifth term representing the sports, JS Online and News Information Center staffs.

Also on the Grievance and Representation Committee, metro reporter Larry Sandler was named posting and exclusions coordinator, replacing Pearson and returning to a job Sandler had previously held for more than three years, and night copy editor Russ Maki was reappointed wage data coordinator, for his first full term.

MKE copy editor Dave Lee, a steward, was named communications chair, replacing Sandler, and night copy editor Jen Boyden-Holmes was named newsletter editor, replacing night copy editor Amy Rodenburg Maillet. Also on the Communications Committee, online producer Heather Marshall Gergen was reappointed Webmaster and photo technician Dave Kirner was reappointed technology coordinator.

Among other committees, day copy editor Karen Samelson was named human rights chair, Racine Bureau reporter Jennie Tunkieicz was named organizing chair and features/entertainment writer Jan Uebelherr was named social chair.

Ghelfi, Johnson, Kirner, Samelson and Uebelherr are also board members. Tunkieicz is our immediate past president and Kirner is also a past president.

All terms expire next October.

Deal reached on Guild jurisdiction

Negotiators for the Milwaukee Newspaper Guild and the Milwaukee Journal Sentinel have agreed to reduce the management ranks by two positions.

Retroactive to July 1, the vacant post of deputy features editor was removed from the list of jobs excluded from Guild contract protection. That brought the number of excluded jobs down to 54, not counting Washington Bureau employees and newsroom interns. By Jan. 1, the number will drop to 53, when the newspaper removes another job from the exclusion list. That is currently scheduled to be the vacant position of deputy managing editor, but another job could be substituted if a deputy managing editor is named before then.

The Guild contract called for a decrease of three excluded positions by Jan. 1 of this year, followed by negotiations this summer on further reductions. Management previously dropped the positions of urban life editor, News Information Center manager and database editor from the exclusions list. All three jobs remain vacant.

FAQs on Journal Sentinel buyout

After Milwaukee Newspaper Guild leaders received Tuesday’s announcement of the Journal Sentinel’s voluntary buyout offer, we compiled a list of questions from members. Guild representatives met Wednesday with Scott Zantow and Cindy Wargula of the company's Human Resources Department to get those questions resolved. We do have some answers; for other questions we’re waiting for more information.

We ask anyone who is considering the buyout to contact a Guild representative. This will help us get a handle on how many people are interested. Also, we can answer -- or help get answers to -- your questions. The Guild can’t recommend what you do. This is a personal decision that involves many factors, but we can try to provide as much information as we can along the way.

The Guild also will be conducting informational meetings next week for anyone who has questions or concerns. More information will be coming soon on those sessions.

Here’s what we know so far, with a promise we’ll provide more details as they become available.
How will the company handle unemployment filings for those who take the voluntary package? Whether someone receives unemployment is a decision made by the state. The company can be asked to provide information, though, and we were told the company would not challenge unemployment claims made by those who take the voluntary buyout. However, the Guild’s lawyer, Barbara Zack Quindel, said the company’s promise not to challenge unemployment claims is not enough protection for our members. She cited an issue that arose in 2000 when voluntary packages were offered to employees in the News Information Center. The Guild has asked the company to consult with the state unemployment compensation office, as it did in 2000, to ensure that employees taking the package would be eligible for unemployment.

Equity Award winners have to stay with the company for three years before they can collect their stock award. How are they affected if they take the voluntary package? They would forfeit their Equity Award.

Will employees who are leaving be paid for all unused vacation, ATO (comp time), banked vacation days and TVA (transitional vacation account) time? Yes, that would all be included in an employee’s last paycheck.

If a newsroom employee found the proposal being offered to other departments (1½ weeks of pay per year of service plus six months health care) more enticing, would he or she be allowed to take that instead? No. “We’re only offering the programs as they’ve been offered,” Zantow said.

If an employee has been with the company 12 ½ years, does the half-year count in calculating weeks to be paid with the buyout? No, only full years of service will be counted. So someone who has worked 12 ½ years would receive 24 weeks in the buyout.

Will the payout be in a lump sum? If so, what are the tax implications? While your vacation pay would be included in your last regular paycheck, the check for the weeks you are being paid under the voluntary buyout would come in a lump sum. It would be taxed at the supplemental rate: 25% for federal taxes; 6½% for state taxes.

When would I receive the check? Nov. 15 has been set as the approximate last day for those who take the voluntary package. Your last regular paycheck would be Nov. 23, a Friday because Thanksgiving is Nov. 22. The lump sum check would come soon after that, but exactly when is not yet clear.

Would the two months of health care coverage provided count against my COBRA time limit (because COBRA provides 18 months of coverage)? Yes. You essentially retain your Journal Sentinel coverage while under COBRA for those two months. The company would pay for health care coverage during that period. Once those two months end, you would have another 16 months under COBRA.

Will the Guild be provided with updates on the number of people seeking the voluntary package? Yes. The company said several people, not necessarily from the newsroom, already have applied.

How would the health coverage in the voluntary package dovetail with retiree health benefits? Employees who are 55 or over are eligible for the coverage under the retiree health insurance plan. Instead of COBRA, those employees would be covered under the retiree plan for two months at the company’s expense. After that, they could continue in that plan and pay the required premiums.

Is there a target number for how many newsroom employees the company would like to see take the buyout? Zantow said, “We don’t have a magic number.” The companywide range of 35 to 50 employees is based on the total dollar figure that the company is seeking to save via the buyouts. If employees with higher salaries take the package, the number might be closer to 35 than 50.

If more than 50 people seek the voluntary buyout, would you take that many? Zantow said he was not sure.

One of the announcements on Tuesday talked about the company expecting a reduction of approximately 100 jobs by year-end. What does that mean? The reference was to 100 full-time equivalents (FTEs). From the information we’ve been given so far, that would be a combination of the 50 or so people who potentially take the voluntary buyout as well as positions that have not been filled throughout the company.

Are applicants being considered on a first-come, first-served basis? No. All applicants will be reviewed once the deadline is reached.

What will the impact of the buyout be on hiring, current open jobs and posted jobs? Zantow said he was not sure and would get back to us with an answer.

For people who take the buyout and are accepted, why does the company have different agreements to sign for people 40 and over and people under 40? By law, people 40 and over are a protected class and would have 45 days to back out of the agreement.

Who from the company will decide which buyout applications for the buyout to accept and which ones will be denied? Zantow said he did not know, but would get back to us on that.

The letter from the company states that people would be informed if their application for the buyout is accepted, but would they also be informed if it is denied? Zantow said that was a good point and he would check into it.

What is the reason for the newsroom employees getting two weeks of pay per each year of service and two months of health care, and the rest of the company getting 1½ weeks of pay per each year of service and six months of health care? The Guild contract requires two weeks of pay per year of service under an economic downsizing and the rest of the company has no similar guarantees. The additional health care for non-newsroom employees is the financial equivalent of the additional half-week of pay.

Did the company consider other actual “sweeteners,” such as job placement assistance, education assistance, pension enhancements, service credits, etc.? Zantow said he did not know, but would check into it and get back to us.

Guild moves to deal with buyouts

Milwaukee Newspaper Guild leaders are moving swiftly in reaction to today's announcement of a buyout plan at the Milwaukee Journal Sentinel.

Newspaper managers announced plans to offer voluntary buyouts to between 35 and 50 employees companywide, limited to workers with 10 or more years of service. But if the buyout plan doesn't attract that many takers, involuntary cuts could be next, Publisher Betsy Brenner said.

Local Guild leaders have already been in contact with The Newspaper Guild's international staff -- including the top international officers -- and with our attorney. Guild representatives will be meeting Wednesday with human resources managers to discuss the issues raised by the buyout offer.

"We are deeply concerned that a reduction in newsroom staff could affect the quality of our newspaper and our online offerings," newly elected Local 51 President Amy Rinard said. "The fewer journalists we have, the less service we can provide to our readers."

Rinard said the Guild is also concerned that the three-week window to decide on the buyout will be too short for people to make life-changing decisions about their jobs, and that the offer as it stands now is "not very enticing" in comparison to what our contract would provide in an involuntary economic downsizing.

Within the newsroom, the buyout would offer two weeks of severance pay for each year of service, plus two months of health care coverage. Other Journal Sentinel employees would get 1.5 weeks of pay for each year of service, plus six months of health care coverage.

In an economic downsizing, the Guild contract requires two weeks of pay for each year of service, plus 60 days' notice or 60 days' pay.

Newsroom workers who have questions about the offer, or who are considering the buyout, should contact their Guild representatives. We will try to get your questions answered and will communicate your concerns to management.

The Guild represents more than 200 newsroom staffers, or between one-quarter and one-fifth of all Journal Sentinel Inc. employees. Our contract runs through Dec. 31, 2008.