June 22, 2001

AOL Time Warner to Grant Stock Options to ERIP Volunteers 

Guild forces company’s hand on benefit for upcoming retirees 

In response to a proposal made by the Guild last week (reported in On Time #8, June 15), the company has agreed to give stock options to all of the Guild-covered employees who are retiring under the Enhanced Retirement Incentive Program (ERIP). These retirees, who must be off payroll by July 31, will be granted equivalent options to those given to non-Guild employees earlier in the year. The options will be granted sometime between July 19 and July 31, according to Eileen Maraldo, head of benefits at Time Inc. The company’s position evolved quickly after the Guild delivered a letter on June 11 requesting the grant for the ERIP employees. What first seemed like a "no" from Time Inc. management became a maybe and then, on June 20 at a weekly grievance session, turned into a "yes." The Guild applauds the decision by the company and hopes that it signifies a greater willingness to listen to the union. 

The Guild will find this out soon enough. At a meeting yesterday between the Guild and management, the Guild requested more information from the company about stock options, and management said they would give most of it to the union. The Guild has retained a top financial analyst, Josh Wolf-Powers of Keilin & Co., to analyze the information that the company will provide. Wolf-Powers asked many probing questions at yesterday’s meeting, which took place at the direction of arbitrator Martin Scheinman. The arbitrator strongly suggested to management that it consult with the Guild promptly regarding the plan changes, and report back to him within a couple of weeks. Unless we are able to forge a mutually agreeable settlement, Scheinman will decide if management violated the Guild contract when it replaced the Profit-Sharing plan with stock options. 

The Guild, represented by Secretary-Treasurer Bill O’Meara, Unit Chair John Shostrom, Grievance Chair Edith Fried, and the Guild’s attorney Irwin Bluestein, will have a follow-up meeting with management, probably next week, and we will report on it in another On Time. 

When Guild-covered employees ask, "Where do Guild dues go?" here's the answer: To arbitrations like the ones on Profit-Sharing and stock options, and to pay for experts such as Wolf-Powers who can help the Guild fight to protect your rights and your benefits. 

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