Union News & Announcements

January 25, 2007

The BNG Executive Committee met with the company for three hours on Tuesday to discuss the details of the buyout program and outsourcing plans.

The Company’s representatives, Greg Thornton and Harriet Gould, said they could not yet provide a list of jobs slated for outsourcing. Thornton said the outsourcing program is still “a work in progress” and that managers in finance will be examining the work processes in that area over the next 4-6 weeks and determining which functions will stay in Boston and which will be outsourced. At the point, an exact number of positions to be lost will be established, although Thornton said the initial estimate of 50-55 “seems a bit high”.

They said they expect, but are not yet certain, that the outsourced jobs will be filled by workers in Bangalore, India. The work will be moved in April or May, they said.

The package offered to outsourced employees will be “very much like the buyout package, if not identical,” said Thornton.

Regarding the buyout, the company confirmed that the offer will go only to employees with at least 10 years of service, and will include three weeks of pay for every year of service.

About 260 Guild members will be eligible. In addition, 65-70 non-union employees will be offered the buyout.

The company hopes to reduce the current workforce by 40 people through the buyout program. In addition, 30 currently vacant positions will not be filled, including more than 20 management positions. Gould said she would provide the union with a list of the non-union jobs that will not be filled. The jobs include two company presidents and a vice president in advertising.

The reduction will include 17-19 jobs in the Editorial Department. Additionally, the Worcester T&G will be downsizing by about 8-10 positions.

The buyout will not be offered to employees in Finance, Information Technology or Outside Sales. In Outside Sales, the company said it could not afford to lose any more highly experienced salespeople. “We need to make sure we don’t have to replace the people who leave,” said the company representatives.

The buyout will not be offered to part-time employees, the company said, because (1) buyouts have not been offered to such employees historically, (2) the company expects to have enough interest from full-timers to meet its goal, and (3) part-timers are needed to meet need on “heavy days” in advertising.

The buyout will not be offered to non-active employees, such as those out on worker’s compensation, because their departure would not translate into sufficient savings.

The company will not provide a pension bridge because the cost is prohibitive, Gould and Thornton said---an estimated $2 to $3 million for 35-50 potential participants.

The company expects to save $5 to $6 million per year as a result of the entire buyout program.

On behalf of the entire Executive Committee,

Dan Totten, BNG President

January 26, 2007