Skip to comments.(Indianapolis) Star Workers Swallow 10 Percent Pay Cut In New Contract
Posted on 08/26/2009 9:17:38 AM PDT by Abathar
INDIANAPOLIS -- The union representing newsroom and other employees at The Indianapolis Star has ratified a two-year contract that includes a 10 percent pay cut.
The Newspaper Guild Local 34070 said its members voted 56-45 on Tuesday in favor of the contract, which runs through August 2011 and suspends all merit pay increases.
The contract covers 170 editorial and building services employees.
Company officials have said the pay cut is necessary because of the recession.
Guild members in June voted overwhelmingly to reject a contract offer from the Gannett Co.-owned Star that called for 12 percent pay cuts.
The Star Media Group last month laid off 37 employees, including 17 in the newsroom, as part of a national cost-cutting move by Gannett.
(Excerpt) Read more at theindychannel.com ...
Yep, I doubt in two years things will get any better for them and with that close a vote no way will they accept anything but a big fat raise next time.
When I moved to Indy in the early 80s the Star was a pretty good paper published by the Pulliam family. They even had a Bible verse on the front page every day.
Now it’s a Gannett generipaper. The Star still publishes 7 days a week, but the size is shrinking fast. The Monday thru Wednesday editions are really thin.
They do still have the best editorial cartoonist in the business, Gary Varvel.
When you take 10% of your employee’s pay, you will lose the top performers. Simply stated, these are the one’s that can easily find work at, or above their previous salary with your competitor. In many cases, they have standing offers elsewhere, and remain loyal due to benefits gainee by longivity (ie vacation, sick leave, bonus, options ect.). These usually leave within the first month.
Next, you lose the Good Peformers, the ones in the upper 50 percentile. They were content to stay, but now they realize that with decreased pay comes less discretionary money that they need. The house, VISA and car payments didn’t drop by 10% - so they will look for work. They will leave in the next 3-4 months.
Now, you are left with the mediocure performers; the one’s that while competent, are not the star players you need to remain successful. These are the people who can not find a job elsewhere that pays what they currently earn - they have no choice but to swallow whatever pill they are given.
Thus starts a death spiral.
What is sad, is that the whole thing could have been avoided years ago - by adopting a business strategy that worked with changing technology - and more importantly, by covering the NEWS without adding a liberal spin.
Liberals are cowards, and they typically do not earn much money. Conservatives are the hard working workers, the ones that drive this country forward - they are the one’s who can choose to buy a subscription. By alienating this demographic, you have intentinally cut yourself off from the revenue you need to survive.
FoxNews is fair and balanced - they are doing very well, financially speaking.
Two factories and one fire station in my area are closing within the next 30 days, throwing hundreds of people out of work. Here’s the kicker - all were offered a pay cut (around 10%) in exchange for keeping their jobs, but the union and its workers turned it down. Now, they’ve all lost their jobs.
The Dallas Morning Snooze is a lousy paper that now costs $1 a day and $3 on Sundays. I never pay for it though.
There aren’t any competitors or standing offers. They have had any good “journalists” for decades. The death spiral started many years ago.
When the economy picks up, that would likely be true in another industry. But in newspapers? In this economy? No way. Business school truisms just aren't holding up. P&G has found out the hard way that consumers will leave the Tide on the shelf and grab the Arm & Hammer.
the company i work for took advantage of the economy and used it as an excuse to cut our salary by 10% 3 monthes ago...yesterday they used it again to layoff 5 people and cut salary’s once again...this time 15%....my fianace has been out of work and unable to find a job in our area since may of last year....with the latest salary cut i alone can not pay the household expenses....i know have to look at cashing out my 401k to try and get us through this....and you are correct as myself and others here that carry the load are already out looking for other employment....wish us luck...
Change THEY can BELIEVE in!.....................
good luck friend. if you need to reduce you expenses, please cancel your local liberal newspaper if you haven’t already.
Good luck ... I’ve been laid off 6x in my career. I’m an engineer, and technology and computer companies are extremely unstable. Sure, the pay is good; but when you have to sell your home at a loss, then relocate elsewhere to start over, it doesn’t take long to blow through your retirement.
Trust me, you have my sympathies - been there, was there just a month ago, back to work now (reduced pay, but a job that pays the bills).
Good luck, and God bless.
have never bought it...everywhere we go they seem to be out there trying to hustle up customers...they ask us to subscribe and we tell them we don’t read their mullet wrapper....
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