COUNTDOWN TO A CONTRACT #48

June 23, 2003

A move in the right direction

A move in the right direction While weighty proposals crossed the table during a long weekend of bargaining, a great gulf remains between the Guild and the Sun (i.e., Tribune) over a host of important issues.

The Sun made moves in two areas: late Sunday night it withdrew its new sick leave proposal. This means the Sun is now proposing current contract language, with accruals, maximums and use unchanged from what it is now.

Earlier yesterday, the Sun offered a new pension proposal that charts a new direction for Guild-covered employees. The proposal would freeze the joint Guild-Sun plan, meaning employees hired after June 25 wouldn't be eligible for it, but current employees would be vested and continue to earn credit. Additionally, the Sun would take over the plan and assume, on its face, liability for the plan's underfunding.

A second piece of the proposal involves 401(k) programs. For now, and until Dec. 31, current employees would stay in the Times Mirror 401(k) plan with its current contribution limits and matches. Participation would end and accounts would be rolled over into the Tribune's Defined Contribution Retirement Plan (DCRP). For the first two years, through Dec. 31, 2005, there would be no company contribution. Starting Jan. 1, 2006, Tribune would contribute 2.5 percent of each employee's base salary into his/her DCRP account. The two years of no company contribution would represent Guild-covered employees' collective contribution to the underfunding of the Guild-Sun pension plan.

Additionally, when involvement in the Times Mirror 401(k) ends Dec. 31, all employees will be eligible for the Employee Stock Purchase Plan which offers Tribune stock at a 15 percent discount. The Sun pension plan remains unchanged.

While these problems near resolution, other, difficult issues remain.

Among them:

** Wage freeze/Pay for performance: Tribune is still committed to a wage freeze in the first year of the contract and, after that, a "performance"-based pay system.

** Transfer: Tribune still wants the right to transfer any employee to any job at any time --- and cut pay if the new job pays less.

** Health care: Tribune still resists any limitation on its right to raise your share of health care costs by 4 percentage points a year or to increase other out-of-pocket costs. "

** Layoffs: Tribune still wants the right to lay off employees hired after June 25 at will. ** Past practices: Tribune wants to eliminate workplace past practices.

** Jurisdiction: Tribune still wants to give Guild work to bosses, other Sun employees and, through outsourcing, anyone in the world.

A new wage proposal from the Sun now divides the "merit pool" among departments based on the number of full-time equivalencies in each department. Changes to its transfer language include a proposal to cap the pay cuts to transferred employees to 3 percent a year to give them time to adjust to their new, lower salary. If a pay cut didn't strike your fancy, you could resign with severance.

Proposals are now going across the table with regularity. Progress is being made. But there is a long way to go before we have a contract worthy of your ratification. Every member of the bargaining committee has been cheered by the solidarity exhibited throughout the buildings and in the bureaus --- and, to those of you who stopped by to see the action for yourself, particularly on the weekend, we thank you for your support.

- Michael Hill for the Bargaining Committee