Veteran employees of Inquirer, Daily News, Philly.com to be targeted with buyout offers

The parent company of the Philadelphia Inquirer, Philadelphia Daily news and Philly.com wants to cut costs by offering buyouts to veteran employees.

Interstate General Media management will offer buyouts to newsroom employees with 25 or more years of service and non-newsroom Guild employees with 35 years or more of service, according to a memo t he Newspaper Guild sent to members Wednesday. Guild members in advertising are not eligible.

The union said that Interstate General Media Owner and Publisher Gerry Lenfest broke the news in a prelude meeting to negotiations for a new contract.

A source familiar with the situation said that about 135 of the roughly 500 union members would be eligible for the buyouts. These are most likely some of the highest-paid employees, who are protected in the current contract in case of layoffs. Sources said union officials have not been informed of a set amount of money or employees management would like to cut.

The buyout package, which will not be offered to management, will include 40 weeks of base pay and six months of medical insurance.

"If the Guild does not reach the number of buyouts the company says it needs, Mr. Lenfest said there could be layoffs," union president Howard Gensler and executive director Bill Ross said in the memo.

The union's contract expires in February and negotiations toward a new deal are scheduled to begin Nov. 17.

When asked for comment, both Ross and a spokesman for IGM management said they would not negotiate through the media. Management did release the following statement Thursday morning, after it reportedly informed employees of the buyouts:

"Mr. Lenfest is committed to reaching new contracts with each of the company's unions that will provide our organization with the foundation required for continued stability, innovation, and growth. However, the company respects the confidentiality of our unions and their leadership, and, therefore, will not be commenting on the contract negotiation process."

Ross said the buyout offer was "unexpected, as we had not yet sat down to talk."

Here's the full memo:

    Subject: GUILD BULLETIN: IGM TO OFFER NEW ROUND OF GUILD BUYOUTS

    In our pre-bargaining kick-off meeting with owner Gerry Lenfest and senior management, Mr. Lenfest said, "negotiations with the Guild are critical for sustainability at the company."

    Mr. Lenfest then announced that tomorrow morning the company will offer a buyout to newsroom employees with 25 or more years of service and non-newsroom Guild employees with 35 years or more of service. At this time Guild members in advertising are not eligible.

    The buyout will be for 40 weeks of base pay and 6 months of medical. At this time there are no plans to include management in this buyout offer.

    If the Guild does not reach the number of buyouts the company says it needs, Mr. Lenfest said there could be layoffs.

    The first official contract bargaining session is scheduled for the week of Nov. 17.

    In solidarity,

    Howard Gensler, President

    ill Ross, Executive Director

    The Executive Board of Local 38010/TNG-CWA

Source: Philadelphia Business Journal