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New contract at Merc, layoffs reduced

The San Jose Newspaper Guild reports that following a 20-hour bargaining session that ended at 7:45 a.m. today (Dec. 4), management and the union have tentatively agreed to a two-year contract that will reduce the number of union jobs to be cut tomorrow from 69 to 27.51 full-time equivalent positions. The company promised no more layoffs through June 30. In the bargain, the union agreed to switch to a new health plan that will require employees to pay 20 to 30 percent of their premiums. Other reductions in benefits are also spelled out in the Guild memo. A $1,000 signing bonus is included in the deal to ease the transition to the new health plan. The agreement also calls for 2 percent wage increases each year. As noted previously on the Press Club blog, newsroom employees have been told to stay home tomorrow from 8 to 10 a.m. when management will call those who are being laid off.

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