Some may recall that in the 2006 buyout questions were raised about whether the company was complying with federal age discrimination laws that required employers to provide a 45-day waiting period for potential takers to consider their options. DMN management did not provide a waiting period of that length, saying it did not need to do so so long as people were not required as a condition of receiving the buyout to waive their rights to pursue claims of age discrimination. This time around, the waiting period is once again far less than 45 days.
Here is what you need to know: If you take the buyout, you will be told by HR you must sign a release of certain legal rights. Because the company chose to not set aside 45 days to let people consider it's buyout offer, it cannot legally enforce a waiver of rights granted workers under the Age Discrimination in Employment Act of 1967 - specifically a provision added by Congress in 1989 entitled the Older Workers Benefit Protection Act. You retain your rights to sue under the ADEA even if you take the buyout and sign the waiver the company will require to get your payout. This protection applies to anyone age 40 or older.
If you are so inclined, here is a link to the law: http://www.eeoc.gov/abouteeoc/35th/thelaw/owbpa.html
You might also want to consult an expert in labor law for more info. Mr. Sunbeam has no formal legal training is not licensed to practice anything that requires wearing a suit.
No aspersions are being cast on the company's motives or actions. It's only information.
Thursday, August 7, 2008
A Reminder And One More Thing to Check
First, be sure to check your buyout offer to make sure it reflects any pay raise given this year. Managers have reported problems with people given raises in the past six months.
Secondly, if you were on part-time status before going full-time, check to make sure that you are getting credit for this in your buyout, which is calculated on years of service. This added five extra years to one reporter's offer.
Secondly, if you were on part-time status before going full-time, check to make sure that you are getting credit for this in your buyout, which is calculated on years of service. This added five extra years to one reporter's offer.
Wednesday, August 6, 2008
If You Are Keeping Score
This buyout marks the fifth time since 1998 that the company has initiated a reduction in force.
In 1998, it was a buyout that was offered only to workers of a certain age and experience level. The number of people who accepted was small, perhaps around 20.
In 2001, if memory serves, there was a layoff of about 25 newsroom staffers.
We all recall the layoff of 2004, where 65 newsroom staffers lost their jobs.
Two years ago, about 110 staff members opted to leave.
All in all, more than 200 people have departed via the buyout/layoff route.
Thanks to attrition, today's newsroom of 395 souls was 450 after the buyout in 2006.
Sorry if this a downer. Mr. Sunbeam thought you might to read the writing on the wall.
In 1998, it was a buyout that was offered only to workers of a certain age and experience level. The number of people who accepted was small, perhaps around 20.
In 2001, if memory serves, there was a layoff of about 25 newsroom staffers.
We all recall the layoff of 2004, where 65 newsroom staffers lost their jobs.
Two years ago, about 110 staff members opted to leave.
All in all, more than 200 people have departed via the buyout/layoff route.
Thanks to attrition, today's newsroom of 395 souls was 450 after the buyout in 2006.
Sorry if this a downer. Mr. Sunbeam thought you might to read the writing on the wall.
The Terms of "Involuntary Severance"
Again, management has been mum on specifics. But rest assured, the terms for anyone who is laid off are not likely to be the same as the buyout. Compensation for years of service would likely be calculated differently, and the lump sum payment for COBRA insurance could be far smaller than six months worth.
The upside, if you are a glass-half-full type, is that anyone who is laid off would almost certainly receive some measure of unemployment compensation. The company would also have to compensate you for any unused vacation time. Minus taxes, of course.
The upside, if you are a glass-half-full type, is that anyone who is laid off would almost certainly receive some measure of unemployment compensation. The company would also have to compensate you for any unused vacation time. Minus taxes, of course.
Some Old Advice That Still Seems Valid
The following is an excerpt from a posting Mr. Sunbeam put together during the DMN's 2006 buyout. It seems worth repeating.
With the usual caveat about listening to financial advice from journalism school graduates:
A couple of people have mentioned that if those taking the buyout currently have a payroll deduction for a DMN subscription, that deduction may carry over to your severance check. Some folks laid off in 2004 said they were tapped for a year-long subscription amount. Perhaps it would be a good idea to review all current discretionary payroll deductions before Sept. (12).
Also on that front, those who have Flexible Spending Accounts (or FSAs) for day care or health care should check with Belo Benefits or reliable outside sources to confirm whether you must spend the total amount in your account before leaving the DMN.
For those unfamiliar with COBRA, you have 60 days (or until Nov. 12) after you leave the DMN to sign up. The benefits run for up to 18 months - even though the DMN is paying you for only 6 months. COBRA runs about $950 a month for a family policy and about $400 a month for an individual policy. You can also pay an additional premium for dental coverage. For more info on COBRA check out www.dol.gov/ebsa/faqs/faq_consumer_cobra.html The Carter Financial Management folks emphasized at the seminar Thursday that you should NOT go without health insurance coverage, even for a month. One of the Carter advisors said he was in a serious car accident while in between jobs and would have been crushed financially without COBRA coverage. You can purchase short-term health insurance at group rates through a professional association like the Society of Professional Journalists or a college alumni organization. Both the Texas A&M and University of Texas ex-student associations, for example, offer this option to their members.
One more thing that was also mentioned during the 2006 buyout:
You might want to consider having any elective medical procedures between now and Sept. 12 while you remain on the Belo insurance plan.
With the usual caveat about listening to financial advice from journalism school graduates:
A couple of people have mentioned that if those taking the buyout currently have a payroll deduction for a DMN subscription, that deduction may carry over to your severance check. Some folks laid off in 2004 said they were tapped for a year-long subscription amount. Perhaps it would be a good idea to review all current discretionary payroll deductions before Sept. (12).
Also on that front, those who have Flexible Spending Accounts (or FSAs) for day care or health care should check with Belo Benefits or reliable outside sources to confirm whether you must spend the total amount in your account before leaving the DMN.
For those unfamiliar with COBRA, you have 60 days (or until Nov. 12) after you leave the DMN to sign up. The benefits run for up to 18 months - even though the DMN is paying you for only 6 months. COBRA runs about $950 a month for a family policy and about $400 a month for an individual policy. You can also pay an additional premium for dental coverage. For more info on COBRA check out www.dol.gov/ebsa/faqs/faq_consumer_cobra.html The Carter Financial Management folks emphasized at the seminar Thursday that you should NOT go without health insurance coverage, even for a month. One of the Carter advisors said he was in a serious car accident while in between jobs and would have been crushed financially without COBRA coverage. You can purchase short-term health insurance at group rates through a professional association like the Society of Professional Journalists or a college alumni organization. Both the Texas A&M and University of Texas ex-student associations, for example, offer this option to their members.
One more thing that was also mentioned during the 2006 buyout:
You might want to consider having any elective medical procedures between now and Sept. 12 while you remain on the Belo insurance plan.
The Head Count
Next Monday, Aug. 11, at 8:30 a.m. CDT, the buyout period begins. It runs until 5:30 p.m. CDT on Wednesday, Aug. 20. There is no additional time to opt in or rescind one's offer.
The staff is not going to be told by management how many people have asked to take the buyout, although managers will be advised regularly on those numbers throughout the buyout period. Managers must approve all buyout offers, and that process will take more time. Written notices of acceptance are supposed to go out between Sept. 2 and Sept. 5.
While the precise head count goal for the buyouts at the DMN remains somewhat fuzzy, managers have placed that number at about 40 people. If management does not get - or approve - that number of volunteers, the threat of layoffs looms for the staff. The company has not stated when layoffs would occur - if it comes to that - but it has notified its shareholders that it intends to write off all of the costs of the buyout by Sept. 30.
Mr. Sunbeam will do what he can to track how many people have asked for a buyout before the deadline passes on Aug. 20. He will be depending on those who have made submissions to advise him of their decision. You may send them to mr.sunbeam@gmail.com. In the interest of privacy, no one's name will be posted without their permission. And the danger of posting regular counts of buyout-takers is that people can and do change their minds. This happened a lot during the 2006 buyout. Nonetheless, if Mr. Sunbeam has numbers, he will share them.
If talk in the DMN newsroom is any indication, the interest in seeking buyouts seems slight. So far, only one person near retirement age has told Mr. Sunbeam that he will accept an offer. Of course, it's all talk until 5:30 p.m. on Aug. 20. No one knew during the buyout two years ago whether a much larger target number to avoid a layoff would be met. But that offer was more generous, and the economy - especially for journalists who wanted to remain journalists - was stronger. That said, we should all go into the decision-making period aware that more change is coming.
The staff is not going to be told by management how many people have asked to take the buyout, although managers will be advised regularly on those numbers throughout the buyout period. Managers must approve all buyout offers, and that process will take more time. Written notices of acceptance are supposed to go out between Sept. 2 and Sept. 5.
While the precise head count goal for the buyouts at the DMN remains somewhat fuzzy, managers have placed that number at about 40 people. If management does not get - or approve - that number of volunteers, the threat of layoffs looms for the staff. The company has not stated when layoffs would occur - if it comes to that - but it has notified its shareholders that it intends to write off all of the costs of the buyout by Sept. 30.
Mr. Sunbeam will do what he can to track how many people have asked for a buyout before the deadline passes on Aug. 20. He will be depending on those who have made submissions to advise him of their decision. You may send them to mr.sunbeam@gmail.com. In the interest of privacy, no one's name will be posted without their permission. And the danger of posting regular counts of buyout-takers is that people can and do change their minds. This happened a lot during the 2006 buyout. Nonetheless, if Mr. Sunbeam has numbers, he will share them.
If talk in the DMN newsroom is any indication, the interest in seeking buyouts seems slight. So far, only one person near retirement age has told Mr. Sunbeam that he will accept an offer. Of course, it's all talk until 5:30 p.m. on Aug. 20. No one knew during the buyout two years ago whether a much larger target number to avoid a layoff would be met. But that offer was more generous, and the economy - especially for journalists who wanted to remain journalists - was stronger. That said, we should all go into the decision-making period aware that more change is coming.
Tuesday, August 5, 2008
What If My Position Is Eliminated?
Warning: Mr. Sunbeam has no direct information on this subject. What follows is either a restatement of history or pointing out the obvious.
It is a given that some positions are going to be eliminated because of reductions in space, reconfiguration of sections and the loss of 40 staff members through buyouts or layoffs.
In the past, management has told the staff that those people who remain would have jobs but not necessarily the same job. It is also true that in the past some jobs that became vacant because of buyouts/layoffs were posted to be filled by someone else. Management has not been specific about its plans this time, but hints are that the past may apply to the future.
Management will have to review who departs (voluntarily or otherwise) and decide which positions remain or disappear. Management - and HR - will also decide whether to move remaining staff from one position to another with or without an application process.
Bottom line: Chances are good that there will be a job at the DMN for everyone who remains after the buyout/layoff. How much say remaining staff members have in the nature of their job remains to be seen. And it could be several weeks, at least, before the situation is settled.
One further moment from recent history: In the aftermath of the CueCat's demise, newsroom people who worked on that project found they were employees of Belo Interactive, not the DMN. When their CueCat positions were eliminated, they had to apply for other jobs within Belo. If you are in that position now - not working for The DMN proper but wanting to find a spot at The DMN - you may have no choice but to apply for positions that become open at the newspaper. And you may find yourself competing with people who already work for the DMN.
It is a given that some positions are going to be eliminated because of reductions in space, reconfiguration of sections and the loss of 40 staff members through buyouts or layoffs.
In the past, management has told the staff that those people who remain would have jobs but not necessarily the same job. It is also true that in the past some jobs that became vacant because of buyouts/layoffs were posted to be filled by someone else. Management has not been specific about its plans this time, but hints are that the past may apply to the future.
Management will have to review who departs (voluntarily or otherwise) and decide which positions remain or disappear. Management - and HR - will also decide whether to move remaining staff from one position to another with or without an application process.
Bottom line: Chances are good that there will be a job at the DMN for everyone who remains after the buyout/layoff. How much say remaining staff members have in the nature of their job remains to be seen. And it could be several weeks, at least, before the situation is settled.
One further moment from recent history: In the aftermath of the CueCat's demise, newsroom people who worked on that project found they were employees of Belo Interactive, not the DMN. When their CueCat positions were eliminated, they had to apply for other jobs within Belo. If you are in that position now - not working for The DMN proper but wanting to find a spot at The DMN - you may have no choice but to apply for positions that become open at the newspaper. And you may find yourself competing with people who already work for the DMN.
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