Our ContractAugust 31, 2006
Globe’s Best Offer
MEMORANDUM OF AGREEMENT
Between
GLOBE NEWSPAPER COMPANY, INC.
And
BOSTON NEWSPAPER GUILD LOCAL 31245, TNG-CWA
This Memorandum of Agreement is made and entered into by and between Globe Newspaper Company, Inc. (the “Globe”) and Boston Newspaper Guild Local 31245, TNG-CWA (the “BNG”). This Agreement covers the period January 1, 2006 through December 31, 2009.
This Agreement will be a continuation of the terms and conditions of the collective bargaining agreement covering the period January 1, 2001 through December 31, 2005 except for the following changes, including attached contractual changes and those changes separately incorporated into the parties’ Supplemental Agreement entered into on this date.
| Effective January 1, 2007* Effective January 1, 2007**/+ Effective July 1, 2007**/+ Effective January 1, 2008**/+ Effective July 1, 2008**/+ Effective January 1, 2009 | $600 lump sum payment $.2000/hour increase ($7.50 weekly) $.2133/hour increase ($8.00 weekly) $.2400/hour increase ($9.00 weekly) $.2266/hour increase ($8.50 weekly) wage re-opener |
* These payments shall not be treated as part of the wage scale for any purpose. These payments shall be made unless the Globe’s newspaper advertising (including Boston Works) and circulation revenue (“Globe Revenue”) is less than it was in 2005 as follows:
- The January 1, 2007 payment will not be paid if Globe revenue for the first eleven months of 2006 is less then the first eleven months of 2005.
** The hourly increases will be made unless Globe revenue is less then it was in the prior year as follows:
- The January 1, 2007 hourly increase will not be paid if Globe revenue for the first eleven months of 2006 is less then the first eleven months of 2005.
- The July 1, 2007 hourly increase will not be paid if Globe revenue for the first five months of 2007 is less then the first five months of 2006.
- If the July 1, 2007 hourly increase is paid the Globe will also pay the January 1, 2007 increase effective July 1, 2007. There will be no retroactive payment for the first six months of 2007.
- The January 1, 2008 hourly increase will not be paid if Globe revenue for the first eleven months of 2007 is less then the first eleven months of 2006.
- The July 1, 2008 hourly increase will not be paid if Globe revenue for the first five months of 2008 is less then the first five months of 2007.
- If the July 1, 2008 hourly increase is paid the Globe will also pay the January 1, 2008 increase effective July 1, 2008. There will be no retroactive payment for the first six months of 2008.
+ The split hourly increases for 2007 and 2008 will “snap back” if, during the prior calendar year, Globe revenue exceeded the 2005 level by more than $35 million. Snap back payments for 2007 and 2008 will advance the July 1 increase to January 1 of that year.
See Exhibit A attached for the 2005 five month, 11 month, and full year revenue baseline comparison.
The above hourly increases will be applied to the weighted averages of approximately 624ll time employees as of January 1, 2006 to determine the appropriate percentage increase for each year. The weighted average for the first increase ( January 1,2007) is $1,220.73 which equates to a percentage increase of .6144%. The weighted average for July 1, 2007 is $1,228.23 calculated after addition of the January 1, 2007 increase of $7.50 per week which yields a percentage increase of .6513%. The weighted average for January 1, 2008 is $1,236.23 calculated after addition of the July 1, 2007 increase of $8.00 per week which yields a percentage increase of .7280%. The weighted average for July 1, 2008 is $1,245.23 calculated after addition of the January 1, 2008 increase of $9.00 per week which yields a percentage increase of .6826%.
Under these percentage increases, top step reporters, for example would receive wage increases of $8.53 per week effective January 1, 2007, $9.09 per week effective July 1, 2007, $10.23 per week effective January 1, 2008 and $9.66 per week effective July 1, 2008.
If a stated increase is not made because the Globe has not met the revenue goals described above, the subsequent increase(s) will be recalculated based on addition only of the increases that have been made. All recalculations will be based on the current weighted average of $1220.73. The Globe shall share with the Union all recalculated percentage increases.
These percentage increases will be applied to all contract book rates for all bargaining unit employees pursuant to the parties’ 1987 letter of agreement. It will not be applied to merit pay or other supplemental payments. It will be applied to “differential weekly merit” and “differential hourly merit” for all full time and part time employees whose names appear respectively on Exhibits B and C to the 1991-1994 collective bargaining agreement.
In addition, if Globe revenue returns, as described below, to the level reached before its recent decline, each active, full-time regular employee shall be eligible to receive, at the close of 2007 and/or 2008, bonus payment(s) totaling no more than $1,000 for both years. In no event shall any full time employee receive more than $1000 pursuant to this bonus payment provision. Such bonus (es), if any, shall not be treated as part of the wage scale for any purpose.
The following governs whether and to whom bonuses will be paid, as well as the amount of the bonuses:
- Employees who work less than 180 shifts during 2007 or 2008 (whichever year a bonus is payable) and who are not on a bona fide occupational disability shall not be considered active and will not be eligible for a bonus.
- Subject to paragraph 4 below, a $500 bonus will be paid to active full time employees if Globe revenue at the close of 2007 or 2008 is $50 million greater than it was during 2005.
- Subject to paragraph 4 below, an additional $500 bonus will be paid to active full time employees if Globe revenue at the close of 2007 or 2008 is $60 million greater than it was during 2005.
- Regular part time employees who have worked, on average, 22.5 hours/weekly in the twelve month period prior to payment of a bonus shall each receive one half of the applicable bonus, subject to the payment terms described herein. Examples: a) if the $600 bonus is paid, effective January 1, 2007 each eligible part time employee will be paid a $300 bonus; b) if a $500 bonus is paid pursuant to paragraph 2 above, an eligible part time employee will receive $250 at that time.
- In the event of extraordinary, unanticipated increases in the price of newsprint that so impact Globe revenue as to make bonus payments untenable, actual revenue will be reduced as follows for purposes of determining whether bonuses are payable.
Currently, the average per ton price of newsprint (“average price”) as reported by Resource Information Systems Inc. is $694. If average price during 2007 or 2008 does not exceed $834, there will be no adjustment to revenue. If, on the other hand, average price during 2007 or 2008 exceeds $834, revenue will be reduced by the amount equal to the 2007 or 2008 average price, minus $834, multiplied by the number of tons of newsprint used by the Globe during either 2007 or 2008. For example, if average newsprint price during 2007 or 2008 is $934 and the Globe uses 100,000 tons, revenue for purposes of determining the bonus will be reduced by $10 million. ($934 - $834 = $100 X 100,000 = $10,000,000.)
This provision shall survive the expiration of the agreement for the sole purpose of effectuating payment of any bonus due at the close of fiscal 2008.
If either party so requests in writing at least 60 days in advance, this Agreement shall open on January 1, 2009 for the purpose of negotiating the terms of the pattern economic settlement (as described below) for the one year period, January 1, 2009 through December 31, 2009 only.
No later than sixty (60) days before the January 1, 2009 pattern economic settlement re-opener, the Globe may propose specific contract changes to achieve increased operational efficiency and/or cost savings for which it is prepared to negotiate quid pro quo payment(s) to the parties’ Taft Hartley Health Fund. In that event, the Union shall notify the Globe within sixty (60) days thereafter whether it agrees to negotiate over those subjects. If the Union agrees, the contract shall reopen for the terms of the pattern economic settlement and those changes only; if the Union declines, the contract shall open only for the terms of the pattern economic settlement.
During the period of negotiations, the “no strike/no lockout” provisions of Article X, Section 9 of the collective bargaining agreement shall be suspended only insofar as necessary to allow either party to exercise its respective right to strike or lockout in support of its negotiation position regarding the pattern economic settlement and/or the Globe’s proposed operational changes and related quid pro quo payments only if the parties have agreed to negotiate such changes and not with respect to any other contractual provisions which shall remain in full force and effect.
If the event neither party so requests, it is understood and agreed that if the Boston Globe agrees to pattern settlement improvements with the unions with which it negotiates relative to uniform changes in wages, holidays, vacations, bereavement leave, jury duty, health and welfare contributions, pension contributions, permanent suspension or merger pay and the length of the contract, such improvements(s) shall, as of the date they become effective for employees working under the terms of those other labor agreements with the Globe, automatically be granted to the employees employed under the terms of this agreement and shall represent the full settlement for that additional one (1) year period (January 1, 2009 through December 31, 2009).
This Memorandum of Agreement shall be subject to ratification by the membership of the Union and shall be effective and continue for the same term as the Globe and the Union's current collective bargaining agreement (January 1, 2006 through and including December 31, 2009) and hereby is made part of the parties' current collective bargaining agreement.
This Memorandum of Agreement has been signed and executed by the parties below on the ____________ day of ________________________, 2006.
| GLOBE NEWSPAPER COMPANY, INC. | BOSTON NEWSPAPER GUILD LOCAL 31245, TNG-CWA |
| [signature lines] | [signature lines] |
September 14, 2006