Monday, June 11, 2007

Sunday, June 10, 2007

BREAKING NEWS: Management threats lead to federal charge

Because of the threats and intimidation during the last two weeks and a locked-door meeting, the CNI organizing committee filed an unfair labor practice charge against the company with the National Labor Relations Board on June 8.

The NLRB regional staff will now investigate before deciding whether to issue a complaint, which would lead to a hearing on whether the company violated federal labor law.

More to come when we learn more.

We are not alone

Within the next week some very interesting things should be happening which will show management that we are not just 32 people in a newsroom trying to decide whether or not to unionize.

Some of you may feel alone, but know this is furthest from the truth.

We have the backing of dozens of people who know where we are because they’ve been there. Our fellow journalists from Local 51, the Milwaukee Newspaper Guild, know how much we love what we do - the freedom to write, polish, create and photograph that next great idea. They know if we didn’t have families, we would do it for free, but they also know that wouldn’t be a great idea… because what we do and how we do it is of great value to people.

We also have the backing of the entire News Guild Union and the Communication Workers of America… and that my friends, is a great place to be.

Sometimes us creative types think we operate better in isolation. We aren’t known to do battle with our employer, except of course when it comes to our craft. Many of us have probably never asked for a pay raise, thought of asking for time-and-a-half after working an eight-hour day, or thought there was a need for a pay classification. And I’m sure the notion of turning in three stories before we went on vacation or even better yet, (I’ve personally done this) writing on our vacations, didn’t cause us much concern.

But now the dynamic is different… it’s different because I now feel the sting of being told I don’t contribute to generating revenue, that those red marks on a piece of paper some how dictate that I should continue the status quo while being spoon fed fear.
Being a writer has often been called an affliction, a disease, and an incurable one at that, but does it mean that we need to be taken advantage of?

The Journal Sentinel has backed off covering the suburbs because we get paid half the salaries of our counterparts; they don’t pay us if we work over eight hours a day; we don’t get paid a differential for working weekends, holidays or evenings; we don’t have a policy for grievances; and we don’t have a pay structure in place. They also do not post open positions that JS has for reporters and management has mentioned we won’t even be considered for them because we are a weekly newspaper.

Why is that acceptable to us? Because we love what we do and we fear not being able to do it.
I remember the words that my advisor said to me when I went back to school after a seven-year stint of trying to convince myself that I wasn’t a writer, Ginny McBride told me, “You’ll have to start out at a weekly and you won’t make any money.”

I accepted that notion once, but now… I think better of myself.

INFORMATIONAL MEETING

Another meeting is scheduled for 5 p.m. this Tuesday at the local union office 4063, 6511 W. Bluemound Road. We'll be meeting with union reps and Journal union members.

BREAKING NEWS: Investigation finds CNI is profitable

Community newspapers is a profitable entity and not the money pit management has portrayed, according to an intense investigation by union organizers.

According to transcripts from analyst press conferences regarding the quarterly report, CNI newspapers, a division of Journal Communications, are profitable.

Further more, any indication that the weekly newspaper group is the cause of red numbers is the result of management deliberate decisions and not a down turn in the number of subscribers, the amount earned from advertising or a market adjustment caused by an unfavorable status on Wall Street.

Steve Smith, CEO and Board Chairman, told a group of analysts during a 2006 second quarterly report presentation that community newspapers and shoppers continue to "focus on margin improvement."

Margin is net income divided by net sales income and is used as a internal indicator of how an business division like community newspapers is performing.

"Our community newspapers and shopper group continues to focus on margin improvement. Margins in the second quarter were 16.1 percent versus 9 percent in the second quarter of 2005 -- clearly helped by the one-time insurance recovery of $1.1 million. Excluding this benefit, however, margins were nearly 12% -- an improvement of about 300 basis points over 2005," Smith said according to a transcript.

Smith continued to say it was the hand of God that caused the papers and shoppers to appear in the red.

"At our community newspapers and shoppers, revenues of $24.7 million was down 6 percent compared to last year. The revenue reduction from the impact of Hurricane Katrina and the Louisiana print plant shutdown accounted for virtually all of the decrease," he said.

During the presentation of the 2006 third quarter numbers, Smith reiterated community newspapers strength.

"We are very pleased with the continued improvement in our community newspapers and shopper business, where the operating earnings margin was 8.4%. This reflects a number of economies we put in place in the past year, including the outsourcing of back office functions for community newspapers by Journal Sentinel," he said.

During the third quarter, CNI announced the revamp of its Milwaukee area community newspapers. CNI also discontinued ten shopper publications, replacing them with Marketplace, a shared mail product for the Milwaukee market.

By year end, eleven weekly community newspapers were planned to match the coverage provided by 18 neighborhood web sites. According to Smith, the combination of print and web sites will enable CNI to provide unrivaled neighborhood coverage in the greater Milwaukee area around-the-clock online and once a week in print.

"At our community newspapers and shoppers, revenue of $22.5 million was down 8 percent compared to last year," Paul Bonaiuto, company Executive Vice President and CFO, alluding to a small adjustment. "About half of the revenue decline was due to the impact of Hurricane Katrina and the Louisiana print plant shutdown."

Bonaiuto, however. made no indication of the division being unprofitable.

The division "recorded operating earnings of $1.9 million, up almost sevenfold from operating earnings of $249,000 in last year’s third quarter. This increase was due to $1.6 million in hurricane-related costs incurred in the 2005 third quarter. Operating margin was 8.4 percent," he said.

During the presentation of the last 2006 quarter, Smith talked about efficiency, shared costs and best practices as being the result of a continued move to a more synergy within the company's publishing and advertising efforts.

"Journal Community Publishing Group made a significant efficiency move in late 2006 by closing its Heartland, Wisconsin print plant and consolidating all of Wisconsin community publishing printing at our Waupaca print and press location with expected annualized savings of $750,000," he said.

He later said: "At our community newspapers and shoppers, revenues of $23.1 million was essentially flat compared to last year. Excluding the extra week, revenue decreased 6 percent."

Again, Smith the head of the company never making mention of any concern on his part in terms of community newspapers and shoppers and their impact on the bottom line.

During the review of the first quarter numbers with stock watchers, Smith begins to turn a critical eye on the changes that impacted his company's bottom line. Those changes, which included the reorganization of many facets of the division, were a concerted effort to be more profitable and not to save a sinking ship.

Circulation revenue at the community newspapers and shoppers of $477,000 decreased 35.9 percent, largely reflecting the change in the distribution model of the community newspapers in the Milwaukee area. This change, however, provides advertisers with a more effective way to zone their advertising and to target the neighborhood customers they most want to reach," he said.

"Despite a disappointing first quarter at our community newspapers and shoppers, we still expect to improve margins at that division," Smith later added.

Saturday, June 9, 2007

INFORMATIONAL MEETING

Another meeting is scheduled for 5 p.m. this Tuesday at the local union office 4063, 6511 W. Bluemound Road. We'll be meeting with union reps and Journal union members.

The truth

CNI Staffers,
Fear can be a very powerful deterrent to not do something, but fear will never give you an accurate picture to make a decision – one that you have a LEGAL right to make.
Some of our colleagues have taken it upon themselves to tell you that you shouldn’t join the union. Their arguments are all based on fear, not fact. It’s also illegal for a supervisor to EVER ask you if you are for or against the union. Katie Klein and Sue Nord have been having those conversations. Sorry guys… nothing personal, but the law will be followed.
I know many of you have already been asked. These conversations are being documented and will be used in a complaint to the National Labor Relations Board. And to those of you who are doing it, it needs to stop. If you have, please e-mail me at denieslockwood@sbcglobal.net
At the meeting Friday morning, I heard… don’t make me lose my job, don’t make them cut my salary and don’t make them cut my benefits. I heard… don’t rock the boat. I heard… you are in the minority and we know better. I also heard a TON of inaccuracies.
Please, please, please don’t make your decision based on the information you heard and saw at these two meetings.
The truth is, it is illegal to threaten or coerce employees with losing their jobs, wages and benefits. If you don’t believe me, PLEASE visit this website. http://www.nlrb.gov/workplace_rights/nlra_violations.aspx
Also… we wondered the same thing about CNI losing money and one of the guild members asked a financial analyst, who owns stock in the journal said this…
“As far as I've seen, Journal does not break out the financial performance of the Community newspapers. With inter-company charges, it is pretty easy to make a subsidiary look unprofitable. The charges might be pretty heavy for Community newspapers within the company.
A better way to look at it is "how much is Community newspapers contributing to the bottom line of the company". They may as a unit be absorbing more than their fair share of corporate overhead and therefore still very important to the on-going profit of the
company.”
With the heavy advertising content, it seems that they should be profitable. It makes one wonder if the accounting is being done fairly within the company.”
Also… this business about JS losing money…
• Journal Communications owns75 community newspapers and shoppers in eight states and the revenue/expenses for these publications are lumped together in the annual report under a general line item of “community newspapers and shoppers.”
• In 2006, the community newspapers and shoppers had operating earnings of $7.1 million. That was up from $2.2 million in 2005.
• Operating earnings of the daily newspaper were $30.7 million in 2006, down from $41.7 million in 2005.
• Advertising revenue for all the websites -- JSOnline, MKEOnline, MilwaukeeMarketplace, Milwaukeemoms and the 25 MyCommunityNOW sites, increased 34.3% in 2006 over 2005.
• In the entire company there are 11 union bargaining units representing about 800, or about 15%, of the total number of Journal Communications employees. A majority of the fulltime employees covered by a collective bargaining agreement work at the daily newspaper. (The Milwaukee Newspaper Guild is the largest by far of the unions at the Journal Sentinel.)
• Dividends paid on shares of Journal stock were 65 cents per share in 2005 and 2006 when the stock price ranged from a low of $10.05 to a high of $15.96. The board of directors declared a first quarter 2007 dividend of 75 cents per share.
• The2006 annual report touts the “unrivaled neighborhood coverage in the greater Milwaukee area” provided by Community Newspapers and a new shared mail product, called Marketplace, launched by the Journal Sentinel.
• The company feels that having the Community Newspapers distributed free with the daily newspaper “should double their distribution in the communities they target.”
• In 2006, Steve Smith, chairman and CEO of Journal Communications, earned total compensation of $1.4 million. Betsy Brenner, executive vice-president and COO of the publishing group, earned a total of $640,387.

After the meeting, Cindy Wargula, HR and the person the union negotiates with for their contract, said the company did not say we would ‘lose’ our benefits and wages if we unionized because we would start with a blank sheet of paper. She would know, right, since she’s the labor specialist that NEGOTIATES with 11 unions, per the Journal Communications 2006 annual report. Betsy Brenner said 7, I said 8… guess we were both wrong… it’s more.
I told Cindy I felt threatened when the comments were made about losing wages and benefits. Am I the only one that felt threatened? I’d really like to hear if you felt that way.
She apologized and tried to argue semantics with me that they never said, “lose,” but they did say “clean sheet of paper” and that they would have to agree to pay the wages and benefits, but we as a collective bargaining unit also have to agree…. Anyone up for a decrease in wages and benefits? I told her we’d have to agree to disagree, but the damage was done to you, not me. I know the law. I spent two month reviewing the law before we ever started this. My hope is that you ALL know what the law is and use it during this very trying time.
Also, this business about to close or not close… Betsy Brenner said they aren’t going to close us down if we unionize, that they would close us down if we didn’t make money…. We’ll folks… didn’t they prove that to us with that balance sheet that said our payroll went from $380,000 to $790,000? Huh… was that accurate? And why are they telling us this now, when we are talking about unions? And did a union cause that deficit? NO….
My point is… that balance sheet does NOT accurately reflect our contribution to the company. And it never will because quite frankly, when Betsy Brenner said… Content doesn’t generate revenue… that truly made no sense to me whatsoever. Do people by papers, blog, listen to the radio, turn on the TV or go on the Internet for ads?
The bottom line… management would like you to use fear to make a decision on whether you should or shouldn’t join the Milwaukee Newspaper Guild.
The CNI union organizers think you are smarter than that.

Tuesday, June 5, 2007

Hello CNI staffers,

A trusted source who has been with the Journal Sentinel for more than two decades said recently that he remembers the same tactics used when their newsroom unionized.

"Right out of the same playbook," he said.

Is this an indication of how serious they are taking us. Let's review what has happened so far.

Two weeks ago, Cristy calls a two-hour meeting with a handful of "supervisors" to show them a Power Point about unions. This was a secret meeting but some of us knew the reason beforehand.

Last week, Roger sends an e-mail notifying staffers of a "state of the newsroom" meeting with Cristy. He fails to mention the true reason for the meeting in the e-mail but succeeds in locking the doors when the meeting begins. Again Cristy bashes unions for an hour or two. This time management again fails to get the message across since not everyone was present.

Also, an interesting side note, both meetings were in the middle of the day as news was waiting to be reported. Those attended were on the clock. Interesting that the company will pay people to talk about us unionizing.

What have we learned from three and a half hours of secret, locked door meetings ... Cristy does not like unions.

So let me add this up. They lock the doors, have union bashing meetings for three hours and use a 20-year-old outdated playbook to persaude us to trust them. Doesn't sound like they are taking this too seriously. They are showing us absolutely no respect.

Sunday, June 3, 2007

INFORMATIONAL MEETING

We'll be meeting at 6 p.m. Thursday, June 7 at Louise's restaurant, 275 Regency Court (190th and Bluemound Road) in Brookfield. The union will spring for pizzas and sodas (many thanks to them for that).

We will discuss what the union can do for us, some of the tactics JS will try to use to convince us not to unionize, debunk some of the information that the company has already put out there and a little about labor law so that we can all get through this with our jobs intact.

Price paid for "shinking ship"

Christy mentioned we are not making money ...

Sale price of our building: $2.65 million according to the city's tax assessment info on the property. That's a heck of a lot of money to spend on a "sinking ship." And, I don't think that even includes the cost of all the internal improvements and technology upgrades made to the building after the sale. Before JRN bought it, the building was just an empty shell with no walls, plumbing, lights or anything else inside.

Union Update

HI all! Four of the 25-30 potential members of the union will be form the organizing committee and our first objective is to form a mission statement.

Brenden O'Brien, Stephanie Scott, John Neville and Denise Lockwood will be considered the interim union until the union is actually formed by a secret ballot election. Our first order of business is to start communicating with you as a group. Hopefully this will prevent management from taking our union materials. We will be holding a "Get to know about what the guild can do for you" meeting at 6 p.m. Thursday, June 7. We're still in the process of trying to find a place so please be on the look out for that information within the next few days.

If anyone has any questions or concerns, please feel free to e-mail me ahead of time so that we can be prepared to answer them.Cheryl Baker, the regional organizer from the Communication Workers of America (the guild is under their umbrella) along with several local union representatives from the Journal Sentinel will be there to answer questions/concerns about what the guild can do for us, what it's been like working at JS under the union, the process of forming a union and what we can expect from our employer while we're trying to accomplish this.

We'll also be debunking several misnomers presented by Cristy Garcia-Thomas at the locked door, we will threaten the hell out of you but won't present any verifiable information so that you won't unionize, meeting held last week.

If anyone can't be at the meeting but would still like information, please e-mail me.

Just so people are aware, we've had several conversations with many of you about whether or not you would consider joining the union and there is an overwhelming majority that does support unionizing. This is awesome and I hope to see you all at the meeting.

Also.... here are some factoids the JS union and the committee have been collecting over the past few days.

On Jan. 31, 2007 the Journal purchased our building for $2.65 million. This does not include all the upgrades made to the building, the cost of printing the t-shirts, the little welcome buffet or the nice pretty red couches with those ever so pretty pillows in the meeting room.
Also yesterday, one of our staff was just offered a pay raise (I won't say who).
And... did I fail to mention that Community Newspapers and "the shoppers" (which totals 75) per their annual report, had a net operating earnings in 2006 of $7.1 million. That was up from $2.2 million in 2005. Operating earnings of the daily newspaper were $30.7 million in 2006, down from $41.7 million in 2005.
Advertising revenue for all the websites -- JSOnline, MKEOnline,
MilwaukeeMarketplace, Milwaukeemoms and the 25 MyCommunityNOW sites, increased 34.3% in 2006 over 2005. (The websites are all under JCPG, our budget).

By the Numbers

By the numbers

$42,640
Average reporter starting salary for Journal Sentinel

$33,436
Average editorial assistant starting salary for Journal Sentinel

2006
Last time CNI had layoffs

1995
Last time JS union had layoffs

8
hour standard work day. Time worked over 8 hours is time-and-one-half.

4
Hours minimum pay if an employee works on a scheduled day off, unless the employee reaches an agreement to work less than four hours.

1
Week salary for each year worked is paid as severance

.80
An hour differential for working on Saturday or Sunday for the entire shift

.75
An hour night differential for the entire shift paid to employees who work at least half their shift between 5 p.m. and 9:30 a.m.

.65
An hour differential for copy editors, page designers or picture editors who work night or weekends

Original E-Mail

Dear fellow CNI employee,

We have talked with all of you during the past two weeks regarding the possibility of forming a union. Many of you found the prospect quite intriguing. However many of you wanted more information and had questions about the process.

Below are some of the issues that have been raised:

1) job security:
We, as a group, have none currently. Evident by the last six months, management proved their ability to arbitrarily fire us. The fear of losing our jobs has been exasperated by the lack direction and foresight on the part of the management. How many e-mail addresses have you had in the last two years? How many times has your job duties, responsibilities changed during the last two years? Do you remember the day that management told you that you had to "reapply" for your job? Or how about the day that you were informed of their decision?

Also, the question of whether management can threaten you with your job if you are for the union. Under federal law, employers are prohibited from job action against employees attempting to form a union.

Under the National Labor Relations Act (NLRA) you have the legal right to form a union in your workplace. The NLRA says:

Section 7: "Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representation of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining . . . ."

Section 8(a): "It shall be an unfair labor practice for an employer . . . to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 7. . . ."

If we unionize, we would be protected by the collective bargaining agreement. Management would have to deal with CNI employees as one unit instead of 30 individuals. Strength is in the numbers.

2) pay:
We, as a group, are not nearly paid what our fellow journalists in the same company are paid. Let's say Mary, a reporter with CNI, makes $13 an hour. Mary, before taxes and benefits are taken out of her pay check, makes $1,040 every two weeks. Mary clears about $27,000 a year. Mary has a friend she went to journalism school that got lucky and landed a job with the Journal Sentinel. According to the current union contract, her friend makes $23 an hour, $1,840 every two weeks or $47,840 before taxes and benefits. Also Mary does not get paid overtime if she works more than 8 hours a day. Her friend gets time and a half for those long days. Her friend also gets paid a lot more for working weekends and holidays. Mary actually gets paid a little more than a rookie clerk, someone that opens the mail and retrieves the faxes.

Current Journal Sentinel contract can be found here. http://my.execpc.com/~guild51/contract/contract.html

Although nothing has been discussed or negotiated, pay will be most likely at the top of our agenda if we unionize.

According to the International Union of Operating Engineers Web site: Union workers earned significantly more wages than non-union workers did. For instance, the average union worker earned $750 per week, compared to only $617 for non-union workers. That’s a difference of $133 per week. For Latinos, other minorities and women, the wage differences for union members versus non-union workers are even greater. For the year 2000, the earnings difference between union and non-union workers was 28%, and average of $154.00 extra per week.

Full article can be found here: http://www.iuoe.org/organizing/rights.htm

3) process:
There are four steps to forming a union.
1. Contact. This is the stage we are completing at the moment. The stage involves talking with coworkers and determining the interest to move forward. It seems after talking with many of you, that this is something that we are interested in pursuing.

2. Committee. This stage involves the forming of a leadership committee. This committee starts to act as the union. We will write a mission statement. The committee should provide leadership, communicate with fellow employees, collect information and assessment support for the union.

3. Campaign. During this stage, assessment of support continues. The major part of this stage is the signing of a public petition supporting the union. After the petition is signed by everyone who wants to, it is sent to the National Labor Relations Board, which will oversee a secret ballot vote. If approved by 50 percent plus one, the union is certified by the NLRB. At this point, the employer, Journal Communications in this case, is legally required to negotiate with the union.

4. Contract. A bargaining committee will be formed to negotiate a contract with our employer.

This process is outlined in more detail at
http://www.cwa-union.org/organize/

4) Objections
The most intriguing that I have heard during the past two weeks is that Journal Communications can not afford to pay us more. Let's say that all of, after this all shakes out, that each of us makes $12,000 more a year. To be conservative, that would be $600,000 that the company would have to find a year. During the last 12 months the company has made $55 million.
Stock information can be found here: http://moneycentral.msn.com/investor/invsub/results/hilite.asp?symbol=US:JRN
If they can't afford it, they are lying or they don't know how to handle their money.