Guild board OK’s bonus, pushes to restore pay

The Milwaukee Newspaper Guild’s leadership recently cleared the way for Journal Sentinel newsroom employees to receive a 2% bonus, but not without a reminder that we still expect management to restore our wages to what they were before last year’s 6.6% cut.

On July 21, Journal Communications CEO Steve Smith announced a lump-sum bonus for everyone who had taken pay cuts, with the payout amounting to 2% of one year’s wages at our current (i.e., reduced) level. Although that bonus took effect automatically for non-represented employees, union consent was required to pay it to anyone covered by a union contract. We needed to agree by noon the next day in order for the bonus to appear on the July 29 paycheck; otherwise, it would show up on the next check after an agreement was signed.

Our Executive Board met that deadline, authorizing Guild President Greg Pearson to sign an agreement that specified the bonus would not count toward wage restoration. However, board members also sent management a letter urging swift restoration of our previous wage levels.

When we originally agreed to the pay cut, the deal called for wages to be restored for our bargaining-unit members at the same time as for non-union employees, and in proportion to the non-represented group’s 6% cut. That language was subsequently incorporated into our contract, which also requires that our wages would be restored across the board even if non-union employees get their money back on a “merit” basis. Smith had previously hinted that wage restoration might be under consideration for the second half of this year, but his most recent letter suggested 2011 as a more likely target.

Also, although the bonus is calculated as a percentage of our current pay, the contract specifies that wage restoration would be based on our old pay. For example, if non-union employees get back 2% of their former pay, we would get back 2.2% of our previous wage rate, and so on until the full 6.6% is restored.

Here’s the complete text of the bonus agreement:

"This confirms the agreement between the company and the union that the company shall make a cash bonus payment to eligible bargaining-unit employees. The eligibility for and terms of the cash bonus are as set forth in Steve Smith's letter of July 21, 2010. This cash bonus shall not be considered a partial restoration of the negotiated wage reduction by which the company is required to restore partially or wholly under certain conditions."

And here’s the complete text of the Guild’s letter to management:

"The board of Newspaper Guild Local 51 is pleased that management has chosen to provide a bonus to Guild members. However, we would like to make clear that since the pay cuts were intended to be temporary, it is our fervent hope that the company will move quickly to restore salaries. Bonuses, while better than no increase, do not offer employees the security they deserve."