Newsday union workers ratify labor contract

After voting down two contract offers, unionized employees at Newsday Sunday ratified an agreement that reduces wages by 5 to 10 percent, freezes them for two more years, and in the future resumes company contributions to an employee retirement plan.

In a 310-140 vote, members of Local 406 of the Graphic Communications Conference of the International Brotherhood of Teamsters approved the three-year deal that Newsday executives said was necessary in the face of declining revenue. Like many newspapers, Newsday said it has seen its finances deteriorate because of the recession, advertiser migration to the Internet and circulation declines at newsstands.

The agreement consists of six contracts covering workers in the pressroom, editorial, transportation, building maintenance, electronic pre-press and platemaking departments. It doesn't call for the longer work hours, less vacation and bigger wage cuts included in a January proposal that was turned down, 473-10.

A second offer was rejected earlier this month, after which Newsday publisher Terry Jimenez raised the possibility of an impasse if both sides didn't reach agreement by 5 p.m. on July 5. An impasse would allow the paper to unilaterally impose changes in working conditions because the old contracts have expired.

Eight days after Jimenez's letter, however, Newsday, which is owned by Cablevision Systems Corp., and union officials struck the pact that was adopted Sunday by the rank and file. The deal includes a company contribution to a defined contribution retirement plan, starting in 2013 and equaling 1 percent of an employee's gross earnings.

"Once again the union members did their part in seeking to help Newsday, even in light of making concessions," said lead negotiator George Tedeschi, GCC president and former Local 406 chief. "We do hope that Newsday prospers and shares that profitability with its employees and not just its shareholders."

Jimenez added, "We are pleased with the outcome of . . . [Sunday's] vote and I thank our union colleagues for their partnership. I am committed to working together to make our brand and our business even greater for readers and advertisers for years to come."