Birmingham's turn

[Moderator1]

Buyouts in Birmingham

Hastily put together meetings -- two today -- at the News. They've offered buyouts to everyone 55 and older, affecting 80-something building wide and 30-something in editorial. Up to a year's pay, undetermined medical and won't affect their pension, whatever that means. Might affect two people in sports, if they take it.
They aren't looking to cut a specific number and claim they won't cut further, thanks to the Newhouse pledge that assures the non-union folks won't have their job cuts.
But another paper bites the bullet.

 

[tapintoamerica]

So, you're saying there's panic on the streets of Birmingham. (My undying admiration to anybody who can continue this thread with similar musical references.)

 

[dixiehack]

How will these people be able to afford payments on their three-room house with a pepper tree?

As a subscriber, I could tell this was coming, but it still sucks ass.

 

[a_rosenthal]

So, you're saying there's panic on the streets of Birmingham. (My undying admiration to anybody who can continue this thread with similar musical references.)

I suppose this industry will never be sane again.

 

[Football_Bat]

So, you're saying there's panic on the streets of Birmingham. (My undying admiration to anybody who can continue this thread with similar musical references.)

I'll cut to the chase ....

HANG THE DJ!

 

[jobless journo]

Burn down the disco before you start hanging the f--king DJ, because he says nothing to me about me life...

 

[dixiehack]

Confirmation, although no further details.

http://birmingham.bizjournals.com/birmingham/stories/2008/07/21/daily39.html?jst=b_ln_hl

Publisher Victor Hanson III and a fan dancer down on Southside had no comment.

 

[dixiehack]

Remain calm, all is well.

http://blog.al.com/spotnews/2008/07/news_offers_buyouts_to_some_em.html

When Jesus left Birmingham, He apparently did so because he made too much money for the beancounters' taste.

 

[Thirsty And Vacant]

Could life ever be sane again?

 

[Thirsty And Vacant]

"Hopes may rise on the Grasmere
But Honey Pie, you're not safe here
So you run down
To the safety of the town"

That's all from me.

 

[dixiehack]

Gory details encased herein.

http://www.bhamweekly.com/article.php?article_id=00904

About six weeks ago, the pledge changed. It was amended, obviously by a lawyerly hand, to give the company a little wiggle room. Employees noticed.
Then last week came the buyouts. Neither the publisher, Victor Hanson III, nor the editor, Tom Scarritt, would comment beyond a press release, but I managed to get a thumbnail sketch of the offer. Most employees 55 and older who have been at the company for at least 15 years are eligible for the buyout. The basic package is one year’s salary and benefits, either in a lump sum or spread out over a year. Those 57 and older are eligible to retain their benefits until they are 65. The company did not specify by name which employees were eligible, but a sheet of paper with job titles circulated on Friday. There are 86 people eligible for the buyout. The speculation among staff is that the company’s target number for the cuts is somewhere between 40 and 50. Like teacher tenure, the trouble with attrition and buyouts is that these tactics create new problems. They do not, by themselves, discriminate between the hard-workers and the loafers.

So long town, they're heading for Oblivion Junction now.

 

[Medial Collateral]

It's a town full of losers, and they're pullin' outta here to win.

Because the times, they are a changin'

But you'll never, never break my spirit.
I'm free!!

 

[Pencil Dick]

BUMP.

Rumblings out of the Magic City that there's a hastily called 4 p.m. meeting today for all employees. Additional Newhouse-mandated furloughs, perhaps?

Anyone heard anything about this?

 

[playthrough]

Sent to me via PM:


The meeting was Wednesday morning and involved paycuts.
Everyone got them, ranging between 5 and 8 percent for most employees; the Publisher said in the memo he was personally taking a 15 percent pay cut. Internships are also done after this current crop leaves. The pay cut is on top of the furloughs announced earlier this year.
Ironically, the News ranked eighth nationally in market penetration (News unique portion of al.com) according to The Media Audit.
Despite that cheery news, it was a very quiet building today.

 

[Jesus_Muscatel]

I got the same memo via PM.

****.

Eight percent is a lot.

The cost of living in Birmingham is not cheap.

 

[dixiehack]

Suck, suck, suck. And this has actually become one of the better papers out there, merely by the fact that it has cut back newshole and quality much slower than the industry norm.

 

[Steak Snabler]

In a related note, heard today that The Anniston Star is cutting all employees' pay by 10 percent.

 

[slappy4428]

Birmingham News announces employee pay cuts
Posted by Birmingham News June 03, 2009 5:30 PM

The Birmingham News announced to its employees today that it will enact graduated pay cuts of 5 to 8 percent for most employees, beginning June 29.


The News' readership remains strong and stable, Publisher Victor Hanson III told employees, but advertising revenues have declined in the continuing national recession. The newspaper has taken a number of cost-cutting steps to protect its long-term economic health, he said.

"It is imperative that we maintain a robust, independent voice for news and commentary in Birmingham, as well as an effective vehicle for our advertisers," Hanson said.

 

[Pencil Dick]

Any word on the Newhouse papers in Mobile and Huntsville also cutting employees' salaries?

 

[SouthernStyle]

In a related note, heard today that The Anniston Star is cutting all employees' pay by 10 percent.

10 percent. Unbelievable. Taking 10 percent away from someone who's not making a ton to begin with is almost criminal. And let's not forget all the money most of us spent on our education. Very, very sad.

Birmingham News announces employee pay cuts
Posted by Birmingham News June 03, 2009 5:30 PM

The Birmingham News announced to its employees today that it will enact graduated pay cuts of 5 to 8 percent for most employees, beginning June 29.


The News' readership remains strong and stable, Publisher Victor Hanson III told employees, but advertising revenues have declined in the continuing national recession. The newspaper has taken a number of cost-cutting steps to protect its long-term economic health, he said.

"It is imperative that we maintain a robust, independent voice for news and commentary in Birmingham, as well as an effective vehicle for our advertisers," Hanson said.

A 5-8 percent cut in pay along with the furloughs is going to be painful for those living in suburban B'ham. Living in the Hoovers, Vestavias and Pelhams of the world can be pricey.

The cuts will also hurt quality. Along with the daily edition, the News prints community sections that go out to the different metro regions along with the Web only content on al.com. I know in the past that interns and some outstanding freelancers have produced a big chunk of the content in those community papers. Someone said interns were gone. What about the freelancers? The News uses a couple of freelancers in sports like they were full-time employs. If the News loses both, the amount of local content produced will drastically drop and the quality won't be as good either.