Archive | March, 2013

New Journal Register Co. Owner Aims to Carve Up Contracts

28 Mar

wikimedia.orgBALKING AT CONTRACT terms they call outrageous, some 175 Journal Register Company employees in Michigan voted to lead a boycott of the papers [Detroit Free Press].

Since early March, the Detroit Newspaper Guild has been in negotiations with 21st CMH Acquisition Co., the Alden Global Capital unit that received approval last week to buy Journal Register Co.’s assets out of bankruptcy.

Poynter printed a Guild bulletin outlining the company’s demands, which include a 15 percent pay cut and more than doubling employees’ health insurance premiums, according to the Detroit Free Press.

From the Detroit Free Press story:

Louis Mleczko, president of the Newspaper Guild of Detroit, which represents employees at the Macomb Daily and the Daily Tribune, said the employment terms are outrageous. He said Macomb Daily employees took a pension freeze and a 12.5% pay cut four years ago and have gotten just 2.5% back.

“They took tremendous sacrifice to help keep this entity afloat, but now (the company) decided to take on the unions and get rid of them and gut their contracts,” Mleczko said.

The contracts expires March 31. Workers have authorized a possible strike or other labor action once the contracts end.

Journal Register Company’s Bankruptcy Sale Approved

21 Mar

A NEW YORK bankruptcy judge has approved the sale of the Journal Register Company’s assets to Alden Global Capital’s stalking-horse bidder, 21st CMH Acquisition Corp. The ruling came down March 21.

The same judge had delayed a ruling March 19 to further review an objection to the sale made by a division of the Communication Workers of America.

“No one is giving them (the buyer) a free pass in the future,” the judge was quoted as saying in a Bloomberg story.

In the March 21 ruling, the judge ruled that since the transaction won’t close until after the union’s contract expires March 31, the sale could proceed.

Journal Register Co. employs some 1,800 full-time and 500 part-time workers spread across 10 states, including Nick Henderson, a copy editor at the Daily Freeman in Kingston, N.Y.

Unions: Journal Register Co. Has “Declared War”

4 Mar

IN A MARCH 1 story on, Mich. unions say JRC has “declared war,” threaten strike, Andrew Beaujon writes the Metropolitan Council of Newspaper Unions is warning its members of union-busting tactics being employed by Journal Register Company and the Alden Global Capital subsidiary, 21st CMH Acquisition Co., that plans to “purchase” the company in bankruptcy proceedings.

According to the union’s bulletin:

JRC and 21st CMH declared war in FOUR ways:

1. On February 22, JRC gave notice to all the unions at the Macomb Daily and Daily Tribune that it was terminating all collective bargaining agreements. The termination of contracts would be effective March 31. JRC is doing this because it claims it will no longer be the employer when 21st CMH becomes the owner of the newspapers on April 17.

2. JRC has refused to live up the successor clauses in the collective bargaining agreements. It has refused to require its purchaser, 21st CMH, to accept the current union agreements.

3. In Philadelphia and New York, 21st CMH proposed union-busting contracts. It proposed contracts that eliminate all protections regarding work jurisdiction, subcontracting and outsourcing. Those proposed contracts give 21st CMH management the right to change terms and conditions of employment at any time – insurance, work schedules, compensation, etc.

4. When the Philadelphia and New York unions would not to agree to the union-busting contracts, 21st CMH sent letters to JRC employees telling them they could apply for their own jobs when 21st CMH becomes the employer. 21st CMH would selectively hire some employees. The new terms of employment by 21st CMH, according to the letters, include:

  • 15% pay cut.
  • employees pay 50% of health insurance cost and 50% of future premium increases.
  • elimination of all pension plans.
  • reduced vacation schedule.
  • reduced severance pay if jobs are eliminated

An employee at one of the Michigan papers commented on the Denver Newspaper Guild site that some workers aren’t waiting around to see how this all plays out:

As an employee in the Michigan Cluster it is very unfair to us to be on pins and needles and when questions are asked we get answers read from a script. They need to tell us if we are going to have jobs, be considered for jobs, something so we know. Most are being very proactive in searching for another job right now.

In a related story, three Philadelphia units of the Newspaper Guild voted to accept a “final offer” from 21st CMH.

“Our members voted this up resoundingly, but they also were told take it or leave it,” [Newspaper] Guild President Bernie Lunzer said. “This new ownership which is really the old owners reconstituted – sent letters warning all workers that they would be fired when the sale is complete and would have to reapply for their jobs, and would have their pay cut.”

Things with the Journal Register Co. bankruptcy are starting to move fast, so stay tuned.