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February 28, 2001 THE FIGHT
TO SAVE
PROFIT-SHARING:
The Guild at Time Inc. views management’s abolition of
Profit-Sharing as a clear violation of the Guild’s recently ratified
contract, and it has taken immediate action to contest it.
After meeting with Time Inc. management on February 21, the Guild
decided to take three issues to arbitration, foremost among them the
company’s unilateral ending of Profit-Sharing, one of the most
important benefits in our contract.
The Time Inc. staff has recently received three memos, each one
covering one of the issues to be arbitrated: *On
January 23, a memo from Don Logan, the Chairman and CEO of Time Inc.,
announced the end of the Profit-Sharing Plan, which for many years has
added 8% or more to each employee’s pay. He also announced a new AOL
Time Warner stock option program for Time Inc. and other divisions of
the new company that are discontinuing Profit-Sharing.
All employees also received home mailings detailing Founders
Grant awards of specific numbers of stock options to recognize the
purchase of the company by AOL.
The Guild is challenging the company’s unilateral elimination
of the Profit- Sharing Plan, which is a listed benefit in our contract.
The first words in the contract, Article XIV, Benefits, are "The Publisher shall continue in effect during the terms
of this Agreement" a list of benefits, including "its Pension
and Profit- Sharing Saving Plans." Pretty
clear, isn’t it? The
contract expires on February 1, 2004, and at least until then,
Guild-covered employees must continue to get this benefit.
The Guild is also protesting the company’s failure to give
notice to the Guild and consult with it on this matter, as required by
the contract. *On
February 1, a memo from Eileen Maraldo, the head of the Time Inc.
Benefits Department, explained a change, in the company’s Savings
Plan, increasing the allowable maximum contribution. The
Guild is challenging the failure of Time Inc. to give notice to and
consult with the Guild on this change, as required by the contract.
In the past, such consultations have brought positive results for
employees. *On
February 7, a memo from Don Logan and Norm Pearlstine, Time Inc.’s
Editor- in-Chief, announced with fanfare the 8.4% Profit- Sharing
contribution for 2000. It
went on to say that "this will be the final profit sharing
contribution into the AOL Time Warner Savings Plan. Later this year, you
will receive further communications about stock options in lieu of
profit sharing." It
was confirmed at the February 21 meeting that there will be further
stock options, but management said it could give no details about its
plans. The
Guild is challenging Time Inc.’s unilateral implementation of the
stock option plan and, once again, its failure to give notice to and
consult with the Guild. Three
weeks, three memos, three contract violations—not a good start for AOL
Time Warner. The Guild is
determined to fight to preserve your benefits against this new, more
menacing corporation. The
best way for employees to help is to join the Guild and increase our
numbers. Our strength lies
in a large membership, and management realizes that. The
Guild won two similar big fights with the company recently, over the new
burdens and restrictions imposed by the Compliance Manual and the 2000
Freelance Guidelines, none of which now apply to Guild-covered
employees. We need your
support to win our latest struggle, to preserve Profit-Sharing. # # # # # # #
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