Article in the S.F. Chronicle, Business Section, Fri July 22nd
The union representing Chronicle journalists and others at the newspaper in advertising, marketing, circulation, customer service and finance is facing a deadline of midnight Monday to either accept a management contract offer its negotiators regard as draconian or have it replaced by an even less attractive offer.
The Chronicle, a division of the Hearst Corp., has said it lost $62 million in 2004 and that losses continue in 2005 at a rate of $1 million a week and, in recent weeks, $2 million. Management has said it must lower costs to remain viable and competitive.
Union leaders, including those at the Northern California Media Workers Guild, representing 870 workers at The Chronicle and its online unit, SFGate. com, say elements of the offer have nothing to do with savings and eliminate benefits fought for long ago.
The management proposal, according to the union, includes:
Cutting the pay of 44 percent of employees, excluding journalists and other Guild members, some by as much as 44 percent; halving company-paid sick days from 10 to five; eliminating a popular benefit that allows parents of infants and toddlers to work part time until the children are in kindergarten; and cutting one week of vacation.
Contracts for 1,500 Chronicle workers expired July 1. Negotiations have been continuing with the guild, the Northern California Mailers Union, the San Francisco Web Pressmen and Prepress Workers' Union, and the Bay Area Typographical Union.
In a memo to employees on July 18, Frank Vega, Chronicle publisher and president, said the newspaper's economic situation had worsened in recent weeks. He said that is due in part to a hesitancy among advertisers because of a potential labor dispute and a "continued uncertainty on the part of employees.'' In an interview Thursday, he said that a labor dispute can absolutely be avoided, but money-saving changes must be made.
Michael Cabanatuan, president of the Northern California Media Workers Guild, said the union's task is to "take something that we can recommend to members and say, 'Look, this may not be a good contract, but it helps the paper, and it protects as many jobs as possible and a lot of the things we have fought for over the years to gain.' ''
Cabanatuan said the proposal "calls for drastic pay cuts, some to people who can least afford it.''
In his July 18 memo, Vega said the "best offer'' proposal of July 15 will be kept open until midnight Monday. If it isn't accepted, it will be withdrawn and replaced with one "not as good economically'' for workers.
On Thursday, he framed the negotiating conditions this way: "We are open. We've given them what we said was our best offer. We do want to get resolution with the guild on contracts going forward. We have not drawn a deep line in the sand.
"If they want to counter-propose on some of those points, we will certainly look at it, but we feel that we have, due to the financial condition we are in, put out what we feel is a best case offer.''
Cabanatuan said the guild is preparing a counterproposal, the details of which he withheld. "We are hopeful that they (the employer) will be willing to compromise,'' he said.
Vega, who came to The Chronicle Jan. 1 after stepping down as president and CEO of Detroit Newspapers, which endured a lengthy, costly strike, added, "We've got to get this paper fixed, and we can't all expect to have exactly what we had before because then what changes?''
Vega said he wants to trim 100 jobs and hopes most of those would be voluntary buyouts.
Phil Bronstein, executive vice president and editor, said the newspaper "has maintained a focus on good journalism'' during the distraction of contract negotiations. "I know that is not easy for anyone, given the uncertainty'' of expired labor contracts