Severance Pay Focus of Bargaining
The Guild and McClatchy traded proposals on severance and dismissal indemnity Monday, key components of job security as talks continued for a labor agreement. One Herald Guild also told McClatchy it was preparing a comprehensive contract settlement proposal for the next bargaining session, tentatively set for late October.
The Company said it welcomed the move and also said it would be revising its proposals in a number of areas, including the medical and retirement plans, expenses, and how part-time and temporary employees are treated. On the work from home issue, the Company said it would talk with its tax professionals in the hope of resolving the tax status of payments to employees.
McClatchy opened bargaining with a counter proposal on severance pay -- who it applies to, under what conditions, and how much. It adopted a Guild proposal for a “floor” of no less than four weeks of severance, and provisions that would allow beneficiaries to receive payments if a staffer died. It left unchanged its offer of the total amount of severance -- 2 weeks a year up to 26 weeks -- which is current policy.
In April 2020, OHG initially proposed 3 weeks a year for a maximum of 52 weeks. In a revised proposal made Monday, OHG offered 2 weeks a year, but with a 38-week cap in the case of an economic layoff. The union is also insisting on advance notice of layoffs. The company has not proposed any notice, except in limited circumstances set by the federal WARN Act.
Another key aspect is when severance would apply. The company so far only wants it to apply in cases of layoff, but the union says severance should apply if job requirements or performance standards change and threaten the job of a worker who has given years of steady, loyal service. This concept is called “indemnity” and would not apply to egregious disciplinary cases. The company confirmed that it had paid severance in some performance dismissals in the past.
On the issue of part-time and temporary employees, the Guild said its concern was avoiding a classification of “permatemps” who could become second-class employees with few benefits. The company said it would be revising its proposal.
OHG wants part-time to be defined as those who work no more than 30 hours a week. McClatchy has proposed to define part-timers as those who work any amount of time as long as it’s less than a total of 40 hours a week.
Aaron Agenbroad, McClatchy’s lead negotiator, said they “understood the concept” and the intent was “not to create a two-tier permatemp system,” but to retain the flexibility to have someone work on a temporary assignment for up to 6 months.
“The language is intended to provide flexibility,’’ Agenbroad said of the company’s proposal. “So if someone is hired at 3 days a week and, based on coverage needs, we determine we need them two days a week, this language is designed for that flexibility.”
Tony Winton, OHG’s chief negotiator, responded: “Constructive flexibility is great, but destructive flexibility is not so hot, from the Guild’s perspective.”
Under the company’s current policy relating to “contingent workers,’’ independent contractors may be hired only if they do “not perform work that is core to our business” and “temporary assignments should not exceed three months.”
Looking ahead, the union has asked that the company resume in-person bargaining with proper safety protocols, and asked for two back-to-back dates in late October.
McClatchy was represented by McClatchy’s People Team Labor Relations Director Catherine Ryan, Florida Regional Editor Monica Richardson, Herald Managing Editor Rick Hirsch, HR executive Natalie Piner, and McClatchy VP Maria Torres.
OHG was represented by all of the unit members who dropped in, plus lead negotiator Tony Winton, OHG Chairs Mary Ellen Klas and Joey Flechas, Dan Chang, and Jessica De Leon, unit chair for the Bradenton guild.