Newspaper Guild Of Greater Philadelphia Approves Two-Year Deal
In a move designed to resolve issues involving benefits and work hours, on Tuesday members of the Newspaper Guild of Greater Philadelphia voted 259-12 to approve a new two-year deal with the Philadelphia Media Network, owners of the Philadelphia Daily News and The Inquirer, the two large newspaper outlets serving the city. The Philly (PA) reports that under the deal, workers will see no boost to their healthcare costs and management will “exempt up to 25% of any group of employees from seniority-based layoffs.” In previous coverage, the Philly (PA) reported that the old contract was due to expire just before the deal was reached. In June, union members had voted to approve plans to strike if a deal wasn’t reached. The union had pointed out that its welfare and health fund, which pays members’ insurance, faced a $2.8 million shortage this year. Though the company offered to pay $700,000 in addition to its current yearly $2.9 million contribution, employees would have needed to make up the shortfall, the union said. Management had also wanted increased flexibility to lay off workers, rather than solely considering the number of years they had been with the company.
What Happens Next
With union members officially ratifying the deal, the new two-year contract takes place immediately.
What This Means For Small Businesses
A threat of a strike by members of the Newspaper Guild of Greater Philadelphia is yet another example of a high-profile attempt by workers to engage in collective bargaining. Though avoiding a strike is the goal of businesses, this must be balanced with being able to operate in the most cost-effective way. Small businesses in Philadelphia may be troubled by this latest example of pro-labor forces exerting pressure in the workplace, as workers elsewhere might increase pressure on employers to meet burdensome labor demands.
Additional Reading
NFIB recently noted another example of media industry unionization in New York City.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
