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The Honolulu Advertiser
Posted on: Saturday, January 31, 2009

Advertiser contract seeks 10% cut in pay

Advertiser Staff

Negotiators for six unions and The Honolulu Advertiser reached a tentative agreement yesterday that calls for workers to take a pay cut while the newspaper works to overcome an economic downturn.

The accord calls for a 10 percent pay reduction for workers as long as the newspaper's expenses are more than revenues, while preserving employees' pension, vacation, hours and overtime provisions. The contract, which runs through Dec. 31, 2010, was reached without workers having to take one-week furloughs that have been ordered for most other newspapers owned by Gannett Co.

"All in all I think it's an unfortunate agreement, but it's a good agreement for the next two years," said Wayne Cahill, spokesman for the Hawai'i Newspaper and Printing Trades Council. At one point in the negotiations, the company had talked about cutting payroll by up to 31.5 percent.

"This newspaper was able to demonstrate a need for some help, so we gave them some help. In turn they didn't tamper with the rest of our contract," he said.

A ratification vote is scheduled for Feb. 8.

Negotiators have been meeting for more than a year in an effort to produce a new agreement to replace a contract that expired in June 2007. During the past year, the company has laid off 81 employees and given voluntary buyouts to 41 as it grappled with a downturn in business.

Advertiser Publisher Lee Webber said he was pleased that an agreement had been reached and the newspaper will survive an economic crisis.

"We sincerely thank all those involved in these negotiations for their patience and effort in seeing this through during these extremely difficult economic times," said Webber in an e-mail to employees.

The agreement contains provisions allowing the unions to examine company books twice a year. The company must restore wages after it returns to a break-even point.

Cahill said another provision calls for a joint union-company committee to examine ways to improve all aspects of The Advertiser's operation. Other changes include expanding reporter work to include taking photographs and for photographers to write stories.