Nov. 1, 2004

Tribune's Benefit Changes Reflect Company Bottom-Line Values

The Sun Retiree Medical plan, and garage parking fee increases are but the latest benefits falling under the Tribune cost cutting knife in its never-ending search to maximize the bottom line. (Earlier this month Tribune increased health plan co-pays, deductibles, and the percentage an employee pays for family coverage premiums). Here's an update on the status of the company's cost cutting efforts on retiree medical and parking fees:

Sun Retiree Medical Plan: After the company cut off access to the retiree health plan for employees retiring after August 31, 2004, the Guild grieved the contract violation, including Letter of Understanding # 7 (page 94 of the Guild contract). That letter states that employees hired on or after June 25, 2003 are not eligible to participate in any company sponsored retiree medical program. Incredibly, the company now says that although last year it repeatedly described its proposal as being about new hires only, as "prospective", and as not affecting "current" employees, the Guild should have asked whether it affected current employees. Gee, apparently the company had its corporate fingers crossed behind its back when it mouthed the words "prospective", and "for new hires only".

Under the plan removed by the company, retirees pay the full cost of the health premium; the company’s cost is administrative only, as company negotiators acknowledged in 2003. Apparently of no concern to the company is the cost to workers, many of whom may have no other access to health care in retirement.

Parking garage increases: The Sun notified the Guild on October 26 that it proposes to increase the Chesapeake Parking garage fee by $5 per week, effective November 14. The Guild demanded to bargain on the proposal (changes to working conditions and benefits are subject to bargaining).

While the cost of many goods and services is rising, there are opportunities for The Sun to limit the adverse economic impact of commuter expenses for its employees. All it takes is the desire.

For example, the company could agree to permit all employees to set aside pretax wages to cover commuter expenses, including parking, light rail, metro, and bus fares. IRS has long permitted such pretax set asides (just as for health and dependent care benefits), which lower both the employee's and the employer's payroll tax liability. Current IRS rules permit up to $190 per month in pretax commuter related deferrals. The company has rejected this and other commuter cost relief concepts for years.
(over)

And, the company could ensure that parking fees are set on a sliding scale, so that parkers who earn at the lower pay grades don't pay the same rate as those in the top pay grades.

The company could even absorb the increase. The cost, at less than $300 a parker per year, is truly small in the corporate context.

One thing is for sure: the workers who make The Sun don't need continuing erosion of their paychecks--especially when the company can do a lot more than it has to stop such erosion.

The retiree medical and the parking fee issues present yet two more opportunities for the company to show its workers and the community in which it does business that one of its corporate values is respect and concern for the economic well being of its workforce.

We hope Tribune/Sun is up to the challenge.

--Lori Calderone, Guild Administrative Officer

WBNG Membership Meeting

Saturday, Nov. 6, 10 a.m.- Noon
415 St. Paul Place
Baltimore, Maryland

Agenda
•Nominations for Local 32035 At-Large Officers, At-Large Delegates, and 2005 convention delegates.

•Discussion of the Guild’s proposed Green Zone policy on political activity.

•Proposed by-law change on freelance membership.

Refreshments Provided!

 

 

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