DAILY NEWS UNION TAKES LEGAL ACTION AGAINST NEWSPAPER OWNER ALDEN GLOBAL CAPITAL

NEW YORK – Unionized employees at New York’s Hometown Newspaper, the Daily News, have taken legal action against the paper’s owner, Alden Global Capital, after the hedge fund’s representatives circumvented the union to negotiate a health-care plan with an insurance fund for union members – and planned on pocketing the big savings they got on the deal.

The NewsGuild of New York, on behalf of the Daily News Union, filed an unfair labor practice charge earlier this month, accusing the hedge fund and the Daily News of bad faith bargaining, a violation of labor law. The Daily News Union, which represents the tabloid’s print, digital and photo employees, has been bargaining its first contract since it was certified as a union in 2021, a fact they deliberately hid when seeking the health care quote.

Under labor law, any changes to working conditions, including a new health care plan, must be bargained.  

Management notified the Daily News Union on Sept. 23 that there was a new healthcare plan with a deadline for open enrollment of Oct. 21. Management negotiated with the United Furniture Workers fund, an allied labor organization who negotiates directly with insurance providers, saving money for both union members and employers. The fund is directly connected to Blue Cross Blue Shield (BCBS) of Tennessee, providing health care throughout the country on the BCBS network. 

At no time was the union notified about discussions with UFW and at no time did the Company disclose to the UFW that they were negotiating a first contract with the Daily News. The Company did not negotiate with the union over any aspect of their insurance changes despite the union having a healthcare proposal on the table since March 2024. Instead, the Company emailed a copy of the new insurance plan; including plan design changes, increased costs to the employee premiums for select plans and cost savings for the Company to the union. No bargaining took place, which is required by labor law. 

According to records provided by management to the union, the Company’s plan with UFW would save Alden and The Daily News 24.8% - and no savings would be passed on to union members. In fact, the monthly costs under this unlawfully negotiated plan will be slightly more than they pay now.

The Daily News Union has been fighting for a fair contract including living wages and affordable health care. Members testified at a bargaining session in August about the impact of stagnant wages and mounting health care costs. One member shared that nearly a fifth of his salary goes to medical and dental insurance for his family and he has to seek financial support from relatives to cover bills, while another shared that she has postponed surgery she cannot afford. 

“Alden obtained the quote for health insurance under false pretenses, and hid it from us while they refused to respond to the proposal for healthcare we gave to them in March,” said Ellen Moynihan, Unit Chair of the Daily News Union. “Now they are trying to bulldoze us into a plan that will only save them money. That they did this is reprehensible enough, but that they did this after 18 of our members testified about their struggles with wages and the company’s health insurance is absolutely disgraceful.”

Such a blatant violation of the union’s rights to bargain is not surprising given the history of Alden Global Capital as a newspaper owner. The “destroyer of newspapers” has a well-earned reputation for draining cash and resources from the papers it owns. 

At the Daily News, Alden has hacked staff levels to the bone. Since the spring of 2022, 37 staff members have left or been fired, and only 15 replaced, as the newsroom budget continues to evaporate. Alden has pocketed the cash in addition to the $90-100 million it received for selling the Daily News printing plant.

“While this isn’t surprising behavior for Daily News and Alden Global Capital management, this is a new low especially as our members continue to suffer long-standing stagnant wages,” said Anthony Napoli, treasurer of the NewsGuild of New York. “They continue to act as if they can change our members’ working conditions without bargaining. Anyone who knows our union knows that when we fight, we win. Our filing at the labor board is just the start.”