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The Honolulu Advertiser
Posted on: Monday, February 9, 2009

Advertiser employees OK 10% pay cut

Advertiser Staff

The six unions representing The Honolulu Advertiser's 525 nonmanagement employees overwhelmingly ratified a contract yesterday that calls for a 10 percent pay cut.

The contract, which runs through Dec. 31, 2010, was voted on yesterday at the ILWU Hall. The vote was 248-40 in favor of the 22-month agreement.

The agreement calls for the pay cut for workers as long as the newspaper's expenses are more than its revenues, while preserving workers' pension, vacation, hours and overtime provisions. Furloughs, which are occurring at most other Gannett Co. Inc. newspapers, were not a part of the agreement.

"Our members overwhelmingly approved a concessionary agreement," said Wayne Cahill, spokesman for the Hawaii Newspaper and Printing Trades Council and administrative officer of the Hawaii Newspaper Guild. "It shows their dedication to the newspaper and the industry at a time when the economy is spinning out of control and the industry is struggling to reinvent itself."

The agreement, which was reached Jan. 30, took two years of talks with the company. The new agreement replaces one that expired in June 2007. During the past year, the company has laid off 81 employees and given voluntary buyouts or severance to 41 as it grappled with the decline in revenues.

A union CPA will review the company's books every six months. If a profit is shown, all or a portion of the wages will be restored.

Advertiser Publisher Lee Webber said last night:

"We thank our union employees for their show of support in ratifying this agreement. We also thank our nonunion employees for supporting our joint efforts to move The Honolulu Advertiser forward.

"As mentioned earlier, this economic situation is very real for all of us here at The Honolulu Advertiser, but together we can and will survive this economic challenge that grips our industry, nation and world.

"With this decision, we will move forward and remain Hawai'i's No. 1 source for news and information."