After Milwaukee Newspaper Guild leaders received Tuesday’s announcement of the Journal Sentinel’s voluntary buyout offer, we compiled a list of questions from members. Guild representatives met Wednesday with Scott Zantow and Cindy Wargula of the company’s Human Resources Department to get those questions resolved. We do have some answers; for other questions we’re waiting for more information.
We ask anyone who is considering the buyout to contact a Guild representative. This will help us get a handle on how many people are interested. Also, we can answer — or help get answers to — your questions. The Guild can’t recommend what you do. This is a personal decision that involves many factors, but we can try to provide as much information as we can along the way.
The Guild also will be conducting informational meetings next week for anyone who has questions or concerns. More information will be coming soon on those sessions.
Here’s what we know so far, with a promise we’ll provide more details as they become available.
How will the company handle unemployment filings for those who take the voluntary package? Whether someone receives unemployment is a decision made by the state. The company can be asked to provide information, though, and we were told the company would not challenge unemployment claims made by those who take the voluntary buyout. However, the Guild’s lawyer, Barbara Zack Quindel, said the company’s promise not to challenge unemployment claims is not enough protection for our members. She cited an issue that arose in 2000 when voluntary packages were offered to employees in the News Information Center. The Guild has asked the company to consult with the state unemployment compensation office, as it did in 2000, to ensure that employees taking the package would be eligible for unemployment.
Equity Award winners have to stay with the company for three years before they can collect their stock award. How are they affected if they take the voluntary package? They would forfeit their Equity Award.
Will employees who are leaving be paid for all unused vacation, ATO (comp time), banked vacation days and TVA (transitional vacation account) time? Yes, that would all be included in an employee’s last paycheck.
If a newsroom employee found the proposal being offered to other departments (1½ weeks of pay per year of service plus six months health care) more enticing, would he or she be allowed to take that instead? No. “We’re only offering the programs as they’ve been offered,” Zantow said.
If an employee has been with the company 12 ½ years, does the half-year count in calculating weeks to be paid with the buyout? No, only full years of service will be counted. So someone who has worked 12 ½ years would receive 24 weeks in the buyout.
Will the payout be in a lump sum? If so, what are the tax implications? While your vacation pay would be included in your last regular paycheck, the check for the weeks you are being paid under the voluntary buyout would come in a lump sum. It would be taxed at the supplemental rate: 25% for federal taxes; 6½% for state taxes.
When would I receive the check? Nov. 15 has been set as the approximate last day for those who take the voluntary package. Your last regular paycheck would be Nov. 23, a Friday because Thanksgiving is Nov. 22. The lump sum check would come soon after that, but exactly when is not yet clear.
Would the two months of health care coverage provided count against my COBRA time limit (because COBRA provides 18 months of coverage)? Yes. You essentially retain your Journal Sentinel coverage while under COBRA for those two months. The company would pay for health care coverage during that period. Once those two months end, you would have another 16 months under COBRA.
Will the Guild be provided with updates on the number of people seeking the voluntary package? Yes. The company said several people, not necessarily from the newsroom, already have applied.
How would the health coverage in the voluntary package dovetail with retiree health benefits? Employees who are 55 or over are eligible for the coverage under the retiree health insurance plan. Instead of COBRA, those employees would be covered under the retiree plan for two months at the company’s expense. After that, they could continue in that plan and pay the required premiums.
Is there a target number for how many newsroom employees the company would like to see take the buyout? Zantow said, “We don’t have a magic number.” The companywide range of 35 to 50 employees is based on the total dollar figure that the company is seeking to save via the buyouts. If employees with higher salaries take the package, the number might be closer to 35 than 50.
If more than 50 people seek the voluntary buyout, would you take that many? Zantow said he was not sure.
One of the announcements on Tuesday talked about the company expecting a reduction of approximately 100 jobs by year-end. What does that mean? The reference was to 100 full-time equivalents (FTEs). From the information we’ve been given so far, that would be a combination of the 50 or so people who potentially take the voluntary buyout as well as positions that have not been filled throughout the company.
Are applicants being considered on a first-come, first-served basis? No. All applicants will be reviewed once the deadline is reached.
What will the impact of the buyout be on hiring, current open jobs and posted jobs? Zantow said he was not sure and would get back to us with an answer.
For people who take the buyout and are accepted, why does the company have different agreements to sign for people 40 and over and people under 40? By law, people 40 and over are a protected class and would have 45 days to back out of the agreement.
Who from the company will decide which buyout applications for the buyout to accept and which ones will be denied? Zantow said he did not know, but would get back to us on that.
The letter from the company states that people would be informed if their application for the buyout is accepted, but would they also be informed if it is denied? Zantow said that was a good point and he would check into it.
What is the reason for the newsroom employees getting two weeks of pay per each year of service and two months of health care, and the rest of the company getting 1½ weeks of pay per each year of service and six months of health care? The Guild contract requires two weeks of pay per year of service under an economic downsizing and the rest of the company has no similar guarantees. The additional health care for non-newsroom employees is the financial equivalent of the additional half-week of pay.
Did the company consider other actual “sweeteners,” such as job placement assistance, education assistance, pension enhancements, service credits, etc.? Zantow said he did not know, but would check into it and get back to us.