Star-Ledger N.J.: buyout of 200 or bust

[inkfingers]

From The Star-Ledger of Newark website (nj.com) moments ago:

The Star-Ledger today announced a large-scale buyout to all non-union workers with the goal of reducing the staff by at least 200 employees.

Publisher George E. Arwady said if 200 employees don't agree to the buyout and if the paper cannot reach agreements with unions representing drivers and mailers meant to reduce costs, the paper will be sold. He said the deadline for reaching both of those targets was Oct. 1.

The offer comes at a time when the newspaper industry is reeling from plunging advertising revenues linked to a troubled economy and sea changes in the way information is disseminated.

The offer was announced to grim-faced employees by Arwady at the paper's headquarters in Newark. He characterized the paper as being "on life support" and urged employees to consider the offer for the good of fellow employees.

"This is a matter of simple survival," he said.

 

[spnited]

Wow! Just ****ing unbelievable.

 

[EStreetJoe]

Since The Times of Trenton merged many operations (including pagination and editing of wire copy) with The Star-Ledger two years ago, this also effects The Times.

The Times needs 25 employees throughout the company to accept the buyout offer or it ceases publication. If The Times meets its buyout target but The Star-Ledger doesn't meet the two terms posted in the article above they will look to sell the two papers together as a package deal.

Note: The 25 is spread across all departments (advertising, circulation, newsroom, etc.) and there are only about 110 full-time employees at the paper as a whole.

 

[Mizzougrad96]

They're messing with the paper that Tony Soprano gets every morning?

 

[goalmouth]

"The paper will be sold"? "Life support"?

They're bluffing. Who would buy?

This is the thanks staff gets for agreeing not to be represented.

 

[Sam Mills 51]

"The paper will be sold"? "Life support"?

They're bluffing. Who would buy?

Exactly what I was thinking. Upper management must feel like that's the best way to threaten a strong union shop. (That assuming, of course, that Newark is a strong union shop.)

 

[Songbird]

A newpaper owner in Ohio was sniffing around to buy our paper recently (or so I heard through the grapevine). There are buyers out there. Let's not kid ourselves.

 

[Sam Mills 51]

A newpaper owner in Ohio was sniffing around to buy our paper recently (or so I heard through the grapevine). There are buyers out there. Let's not kid ourselves.

Maybe so. But there are people sniffing about dealer lots all the time.

How many of those are buying, especially when they see nothing but lemons and no protection via lemon laws after more extensive research?

 

[Songbird]

Buy low, sell high.

 

[EStreetJoe]

"The paper will be sold"? "Life support"?

They're bluffing. Who would buy?

Exactly what I was thinking. Upper management must feel like that's the best way to threaten a strong union shop. (That assuming, of course, that Newark is a strong union shop.)

I believe the only union employees at the Ledger are the pressmen/mailroom workers and the truck drivers.

 

[Sam Mills 51]

That's why we have the good people in Jersey chiming in ... to save me from my idiocy.

But still the question remains: Who will take the paper under the circumstance of being on "life support" and furthermore has employees who won't willingly jump off the train for a couple of weeks' pay and a month or two of extra medical bennies? It's difficult enough to find willing buyers for healthy, profitable publications given the current state of the economy.

The good companies aren't buying - see McClatchy.
The vultures are strapped - see Dean Singleton.
The others are learning the hard way and are too busy slashing and burning - see Sam Zell.

 

[Songbird]

Being right down the street from the other daily in this craptastic Jersey city, a big piece of me is expecting the boss to offer buyouts and such.

 

[Ace]

The offer was announced to grim-faced employees by Arwady at the paper's headquarters in Newark. He characterized the paper as being "on life support" and urged employees to consider the offer for the good of fellow employees.

That's the weakest plea/threat ever. I sure hope someone asked bossman to be a good example and resign first.

 

[EStreetJoe]

That's why we have the good people in Jersey chiming in ... to save me from my idiocy.

But still the question remains: Who will take the paper under the circumstance of being on "life support" and furthermore has employees who won't willingly jump off the train for a couple of weeks' pay and a month or two of extra medical bennies? It's difficult enough to find willing buyers for healthy, profitable publications given the current state of the economy.

The good companies aren't buying - see McClatchy.
The vultures are strapped - see Dean Singleton.
The others are learning the hard way and are too busy slashing and burning - see Sam Zell.

Simple answer... if the majority of employees (including all newsroom employees) at the papers (Star-Ledger and Times) are non-union, there's no union to deal with. So whomever buys the paper can come in and fire people at will without repurcussions, say everyone stays but is getting 10-15% salary cut, everyone will have to start paying hundreds a month for health insurance (as opposed to the zero they pay now), the matching for the 401k is reduced/eliminated (or the 401k itself is eliminated).
The buyout offer is more than you've indicated.

 

[Sam Mills 51]

The buyout offer is more than you've indicated.

I certainly hope so, but except for those either of retirement age or a handful who have their next job/change of professions lined up, it's a weak token.

And Ace ... an upper manager actually resigning? Logic and common sense don't come easily to all those upper management types.

 

[spnited]

You forget estreet to metion that whoever comes in can eliminate the annual end-of-year (right before Christmas) bonus.

The buyout probably is 2 weeks for every year worked up one year's pay....pension credit enhancements if you're over 55 and continuation of health bennies for a few months.

 

[Montezuma's Revenge]

Buy low, sell high.

I could be mistaken, and if I am, I apologize, but I believe you plagiarized someone. I really feel like I've read that somewhere before.

 

[Songbird]

nah, i totally made it up. could be the new business catch-phrase. or something. har.

 

[EStreetJoe]

You forget estreet to metion that whoever comes in can eliminate the annual end-of-year (right before Christmas) bonus.

The buyout probably is 2 weeks for every year worked up one year's pay....pension credit enhancements if you're over 55 and continuation of health bennies for a few months.

1) What's a Christmas bonus? I've worked at a Newhouse shop for 19 years and have never received one.

2) Unlike the last round of buyouts, this one is not based on length of service. The basic buyout amount being reported* is your 2007 salary (from your W-2) and 1 year of health insurance. I'm guessing there are other details for those near retirement age.
* - http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003833976

 

[deskslave]

That's why we have the good people in Jersey chiming in ... to save me from my idiocy.

But still the question remains: Who will take the paper under the circumstance of being on "life support" and furthermore has employees who won't willingly jump off the train for a couple of weeks' pay and a month or two of extra medical bennies? It's difficult enough to find willing buyers for healthy, profitable publications given the current state of the economy.

The good companies aren't buying - see McClatchy.
The vultures are strapped - see Dean Singleton.
The others are learning the hard way and are too busy slashing and burning - see Sam Zell.

Simple answer... if the majority of employees (including all newsroom employees) at the papers (Star-Ledger and Times) are non-union, there's no union to deal with. So whomever buys the paper can come in and fire people at will without repurcussions, say everyone stays but is getting 10-15% salary cut, everyone will have to start paying hundreds a month for health insurance (as opposed to the zero they pay now), the matching for the 401k is reduced/eliminated (or the 401k itself is eliminated).
The buyout offer is more than you've indicated.

I would guess that the new owner would not be held to the terms the current one is, as far as not conducting any layoffs. Wasn't that how they got them to agree not to unionize?