StarBulletin.com

Buyouts offered at the Advertiser


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POSTED: Monday, October 20, 2008

The Honolulu Advertiser is offering buyouts to full-time employees in an effort to save $5 million to $10 million.

Meanwhile, the union is trying to work out a contract for its members with the paper's parent company, Gannett Co. Inc. The last contract expired June 9, 2007.

President and Publisher Lee Webber wrote in a letter mailed to employees Friday that the company is offering the “;voluntary separation program”; because the “;environment in which The Honolulu Advertiser operates continues to worsen.”;

Webber did not say how many employees the company seeks to cut.

If the voluntary offer doesn't produce a sufficient reduction in employees or if business conditions worsen, “;it may be necessary to consider other expense reductions, including layoffs,”; Webber wrote.

The paper is offering the buyout to full-time employees in all departments except for advertising.

Webber could not be reached for comment. Advertiser Editor Mark Platte did not immediately return calls for comment.

“;It's distressing because we don't know where the bottom is on the layoffs, how deep the cuts they want to achieve,”; said Wayne Cahill, administrative officer of the Newspaper Guild. “;Then we'd have to look at who's going to do the remaining work.”;

Cahill, who was attending a conference in California yesterday, said the company had informed the union in bargaining recently that there would be more layoffs. He said the company reported needing to cut $5 million to $10 million in expenses because of the shrinking economy.

“;(It's) what they think they need to not only reverse any shortfall, but to give the shareholders a healthy profit,”; Cahill said. “;We don't think they can balance the books on the backs of the members.”;

Cahill estimated that the cuts could reach more than 100 of the 600 or so union employees.

Cahill, who had previously said the company was making money, agreed that it is in the red. He spoke with a union-hired accountant who inspected the company's finances, but was bound by a confidentiality agreement against discussing specific findings.

“;It's never good news when an employer says they're losing money and offers up the books to prove it,”; he said. “;What they're telling us is true.”;

He said the union is still taking a look at where it wants to go based on the books. It has come to a tentative agreement with the company on medical, but is seeking a 2 percent wage increase for members.

Buyouts and layoffs have come before. The company cut 81 jobs through layoffs in July and August. When the company offered buyouts or early retirement to employees 55 or older in July 2007, about 20 accepted, Cahill said.

In the letter to employees, the company offered employees who accepted the buyout two weeks' pay for every year of service for up to 52 weeks. Employees have until Oct. 28 to decide, and a separation date will be set after Nov. 5.

Webber said some employees could be denied the offer if their department's operation was “;jeopardized”; by the numbers that accept the offer. In that case, employees will have the option to accept the offer based on seniority.

The next meeting between the union and the company is tentatively set for next month.