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.