CHANGE MY LOCATION
Business
Examiners
Business Examiner
Most Recent Post
Woe is my 401(k) - retirement losses put at $2 trillion
Internet Business Examiner
Most Recent Post
Digression: YouTube video isn't a commercial but could be
California News
Multimedia News
Sun’s guild employees accept buyout
SEE THE LATEST ON THIS STORY
Related Topics: BALTIMORE
BALTIMORE (Map, News) - Newspaper Guild representatives at The Sun newspaper accepted, without change, management’s recent, qualified buyout plan designed to cut costs by trimming 50 employees companywide from its 1,550-person work force.
About 500 guild members work at The Sun. About 85 of them qualify for the buyout, though management will consider nonqualifying volunteers.
“We didn’t propose any changes,” said Washington-Baltimore Newspaper Guild President M. William Salganik, who added the official buyout packages had just been distributed to eligible employees.
The company’s buyout plan reflects declining, industrywide ad revenues and, possibly, anticipated, further belt-tightening from the pending leveraged buyout of The Sun’s parent Tribune Co.
The plan offers a week’s pay for every six months of service to qualifying employees. Buyout recipients must be severed by June 1.
“I don’t know if there’s ever a last cut with the Tribune Co.,” Salganik said, about rumored further cuts associated with Chicago real estate mogul Sam Zell’s $8.2 billion deal to take the publicly traded company private and make it more profitable. “We’ve had these roughly once a year for 10 years.”
Past downsizings have mostly been buyouts. However, while they weren’t in the newsroom, “there definitely have been some [straight layoffs] in the Guild’s jurisdiction,” said Salganik
A Sun business reporter as well as a union official, Salganik said the company’s downsizing target of 50 employees will be met, eliminating the need for any forced layoffs.
“I suspect some will take the buyout because of the uncertainty of the future,” said Ted Venetoulis, spokesman for a local group angling to wrest The Sun from Tribune Co. and return it to local control. “I know it’s got to be disappointing to the gang up there, and obviously it has some impact on morale. There’s a lot of talent up there, and these folks troop on. They’ve gone through this before.”
Regarding further, Zell-inspired cuts throughout Tribune Co.’s print, Internet and broadcast holdings, Venetoulis said he “would assume that [Zell] will have to do something himself — but maybe he’ll do it a different way.”
Venetoulis said the group he represents, Baltimore Media Group, awaits contact with Zell, but it doesn’t expect to hear from him until the dust settles from the pending Tribune Co. sale.
