Monday, February 26, 2007

Post-Gazette pay cut, retirees also hit

The final unions to vote ratified a new contract with the Pittsburgh Post-Gazette on Saturday, agreeing to a deal that includes staff reductions, net pay cuts and changes in health care.

The newspaper's owners had said they were losing money and threatened to sell the paper if a new labor deal was not reached.

The newspaper's editorial union approved the deal Thursday, and the last unions voted in favor of the 39-month contract Saturday. The unions had been working under the terms of five-year contracts that expired Dec. 31.

Under the new contracts, all 14 bargaining units will see wages frozen over the life of the contract, but a provision requiring employees to divert 5 percent of their wages, up to $50,000, toward health care effectively serves as a pay cut.

The contract also requires retirees to pay at least 25 percent of their premium payments. In the past, they received health care for free.

The Teamsters will see a dramatic reduction in their workforce. The union, which had 375 members last year, will lose 80 positions through attrition and buyouts. The newspaper also is looking to cut dozens of other positions through buyouts, including 10 members of the newsroom staff.

[From reports in the Pittsburgh Post Gazette and Editor & Publisher, Click to go to either story.]

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