Post-Dispatch columnist takes on evaluation system

St. Louis Post-Dispatch employees are completing employee evaluations for the first time, a poorly functioning Lee Enterprises system many have hated for years. Columnist Bill McClellan wrote about his experience, comparing the system to the "Loser Patrol."

I was supposed to rate myself in a number of areas. The rule was this — I wasn't supposed to give myself the highest grade in anything. I don't mean to be egotistical, but I had planned on giving myself a lot of very high grades.

I know what these evaluations are for. I don't want to make it easy to fire me. Especially since the company I work for is not exactly known for being warm and fuzzy. Last week, it told many retirees that their free medical coverage was ending and that they would have to pay the full premium.

Read his full column here.

(Via e-mail; send tips, links and memos to lee.ent.watch@gmail.com.)

Lee Enterprises eliminates more Post-Dispatch retiree benefits

The retiree health benefit saga continues at the St. Louis Post-Dispatch.

On Tuesday, St. Louis Newspaper Guild members who retired and accepted buyout offers between June 2004 and March 2010 were notified that their free medical coverage, which was part of their union contract, will be eliminated on Jan. 1; the retirees will have to pay all of their premium costs to keep their health insurance.

A few years ago, Lee Enterprises made the same announcement that affected guild members who retired under a previous contract, between 1994 and 2004. The St. Louis Newspaper Guild filed suit against Lee. The guild won that suit in late September; the judge ruled that those retirees should get to keep their lifelong health benefits that were guaranteed in their union contract. required Lee to go to arbitration with the union. Lee is expected to appeal the decision.

The guild says it will fight the latest benefit cut as well.

(Via e-mails; send tips, links and memos to lee.ent.watch@gmail.com.)

Times named Lee's enterprise of the year

The Times of Northwest Indiana is Lee's enterprise of the year. A press release from Lee says the Munster, Ind., paper improved its financial performance and led in digital initiatives. (The press release does not mention the 14 people the paper has laid off in 2010.)

The Daily Herald in Provo, Utah, and St. Louis Post-Dispatch in St. Louis, Mo., were finalists for the award.

Read the press release

President's Award winners announced

Lee Enterprises has announced its President's Award winners. Twenty-seven awards were issued; the St. Louis Post-Dispatch appears to be the most honored publication. Congratulations to the winners.

Post-Dispatch editor predicts Sunday-only print publication

As previously announced, the St. Louis Post-Dispatch has killed its Saturday newsstand edition. on Friday, Chad Garrison of the alt-weekly Riverfront Times in St. Louis asked Post-Dispatch editor Arnie Robbins about the change, and the future of the paper.

So, how long until the Post-Dispatch (and all dailies for that matter) cease putting out a print publication all together?

"I'm not feeling particularly clairvoyant this morning," responds Robbins. "But I think in the next ten years you could see the elimination of the weekday paper with the Sunday still coming out in print. The rest of the week would be online or delivered through niche products and phone and e-reader apps. We're working on a few of those projects right now that we're excited about."

Lee Enterprises loses benefits lawsuit

A federal judge ruled Thursday that St. Louis Post-Dispatch employees who retired between 1994 and 2004 should get to keep their lifelong health benefits, which were guaranteed in their union contract. Lee Enterprises cut those benefits more than a year ago.

Following the ruling, Lee Enterprises and the St. Louis Newspaper Guild will begin an arbitration process. Lee is expected to appeal the decision.

The St. Louis Newspaper Guild has details on the background of the case.

Post-Dispatch: Saturday edition for subscribers only

The St. Louis Post-Dispatch will no longer sell single-copies of its Saturday paper starting Oct. 2. The paper will be delivered to subscribers.

The memo sent to employees, which also was published in the paper:

We're making a few changes to the Saturday and Sunday Post-Dispatch beginning the weekend of Oct. 2-3.

The biggest is a new section debuting Oct. 3 in the Sunday Post-Dispatch called "Home & Away." It will combine your favorite features from Saturday's Lifestyle and Sunday's Explore sections -- giving you even more to read in what is already the biggest paper of the week.

The content from Lifestyle -- tips and features on parenting, entertaining at home, gardening, fashion, decorating, etc. -- will be available to more readers by shifting to Sunday. That's the "Home" part of the new section. The "Away" part consists of the travel tips, stories and features that now appear in Explore. Lifestyle will no longer be part of the Saturday paper.

The three-star early edition of the Sunday Post-Dispatch that's sold at newsstands and retail outlets on Saturdays will be available at least one hour earlier on Saturday mornings. It will contain the latest news and sports and prep reports from Friday night, as well as the enterprise reporting and features you expect in the Sunday paper.

You'll still be able to get later five-star editions of the Sunday Post-Dispatch every Sunday, through home delivery or at newsstands and retail outlets.

Because the already popular Sunday Post-Dispatch is becoming even heftier and will be available even earlier on Saturday mornings, the Saturday Post-Dispatch will no longer be sold on a single-copy basis in the Metro area. The Saturday Post-Dispatch will still be delivered to readers with home delivery subscriptions -- at a rate lower than single copy. A special weekend subscription offer is currently available. Please call 314-340-8888 to subscribe today.

(Via e-mail. Send tips, links and memos to lee.ent.watch@gmail.com.)

Lee, guild retiree insurance fight continues

In December 2008, St. Louis Post-Dispatch retirees were taken off a low-deductible insurance plan and added to Lee's mid-deductible plan, forcing the retirees to pay more for insurance. The St. Louis Newspaper Guild filed a grievance, and in February 2010 an arbitrator ruled Lee must refund the difference in coverage to retirees and reinstate the low-deductible plan.

Lee has mailed those checks, but says the arbitrator "ordered the P-D to restore the low deductible option for the affected retirees under the 2004-2009 contract ... he did not order the P-D to reinstate the low deductible plan beyond the term of the 2004-2009 agreement."

Guild members approved a new contract on March 28. The guild has filed another grievance and asked the arbitrator to weigh in again.

What does Post-Dispatch contract mean for Lee?

In its latest SEC statement, Lee Enterprises says the St. Louis Post-Dispatch contract with the St. Louis Newspaper Guild will save the company more than $30 million over the next five years.

"The Company estimates the contract changes will result in non-cash curtailment gains totaling $14,000,000, which will be recognized in March 2010, and are expected to further reduce operating expenses for the six months ending September 2010 by $1,300,000 and by an average of $1,800,000 on an annual basis over the life of the contract. The Company’s post retirement medical benefit and pension obligations will be reduced by approximately $6,500,000 and $2,000,000, respectively, in March 2010. Curtailment gains and changes in benefit obligations are subject to final actuarial calculations."

Post-Dispatch guild approves contract

St. Louis Newspaper Guild members voted 132-54 to approve a five-and-half year contract with the St. Louis Post-Dispatch.

The contract includes a 6 percent pay cut for the duration of the contract and three furloughs between April 1, 2010, and Sept. 30, 2012; eliminates retiree medical benefits for current employees; freezes pensions; and guarantees no layoffs for six months.

(Via e-mails)

Ahead of union vote, a look at Lee executives salaries

On Saturday, St. Louis Newspaper Guild members at the St. Louis Post-Dispatch will vote on Lee's "final offer" five-year contract. That offer includes a 6 percent pay cut through September 2015, a one-week unpaid furlough in 2010, 2011 and 2012, and a possible "snap-back" salary increase in 2013, 2014 and 2015.

Which gives us an opportunity to look at the salary of Lee's leaders. According to the company's proxy statement released in January:

Name	2009 salary	2009 compensation	2008 salary	2008 compensation
CEO Mary E. Junck	$833,654	$882,454	$850,000	$1,089,506
CFO Carl G. Schmidt	$472,731	$612,831	$482,000	$681,492
VP Greg R. Veon	$354,058	$381,337	$361,000	$487,315
VP Kevin D. Mowbray	$328,558	$353,328	$335,000	$452,383
VP Vytenis P. Kuraitis	$262,846	$283,413	$268,000	$370,266

Salaries for each executive decreased by 1.92 percent -- or approximately a one-week unpaid furlough. Total compensation includes bonuses, stock awards and retirement account contributions; fewer of those were awarded. From 2007 to 2008, each executive's salary increased by more than 3 percent.

If Junck followed the salary guidelines and furloughs the union will vote on:

	6 percent pay cut	Furlough	Snap-back	Annual salary
2010	$799,000	$16,346.15		$782,653.85
2011	$799,000	$16,346.15		$782,653.85
2012	$799,000	$16,346.15		$782,653.85
2013	$799,000		$19,975	$818,975
2014	$799,000		$40,948.75	$839,948.75
2015	$799,000		$62,996.16	$861,996.16

Furlough represents one-week's salary, calculated by dividing the annual salary by 52 weeks. The "snap-back" is added if the company increases its annual revenue by at least 2 percent, which I am assuming in this example, and will result in a salary increase of 2.5 percent in the last three years of the contract.

If Mowbray, who in addition to being a vice president of publishing is also the publisher of the St. Louis Post-Dispatch, followed the same salary reduction and furlough schedule:

	6 percent pay cut	Furlough	Snap-back	Annual salary
2010	$314,900	$6,442.31		$308,457.69
2011	$314,900	$6,442.31		$308,457.69
2012	$314,900	$6,442.31		$308,457.69
2013	$314,900		$7,872.50	$322,772.50
2014	$314,900		$16,138.62	$331,038.62
2015	$314,900		$24,827.90	$339,727.90

From 2008 to 2015, Junck's and Mowbray's salaries would have increased by 1.41 percent (assuming, of course, that there were no bonuses or other additional compensation).

Post-Dispatch makes 'last, best, final' offer

Hours after a St. Louis Newspaper Guild rally outside the St. Louis Post-Dispatch, Lee Enterprises presented its "last, best and final" offer to the guild. The offer now goes to guild members for a vote, tentatively scheduled for March 27.

According to the guild's website, the offer includes several pay cuts, three furloughs and, if the new contract is ratified by April 1, 2010, a six-month no-layoff guarantee.

• April 1, 2010 to Sept. 30, 2010: 6 percent decrease plus one week unpaid furlough
• Oct. 1, 2010 to Sept. 30, 2011: 6 percent decrease continues plus one week unpaid furlough
• Oct. 1, 2011 to Sept. 30, 2012: 6 percent decrease continues plus one week unpaid furlough
• Oct. 1, 2012 to Sept. 30, 2013: 6 percent decrease continues minus "snap back" of 2.5 percent on Oct. 1, 2012
• Oct. 1, 2013 to Sept. 30, 2014: 6 percent decrease continues minus "snap back" of 2.5 percent totaling 5 percent on Oct. 1, 2013
• Oct. 1, 2014 to Sept. 30, 2015: 6 percent decrease continues minus "snap back" of 2.5 percent totaling 7.5 percent on Oct. 1, 2014

"Snap backs" are triggered by year-over-year total revenue increases of 2 percent or more.

For advertising sales reps, territories and outside sales commission with no base will increase to $575.

Seniority remains, but the company can exempt up to 20 newsroom employees and five advertising employees from seniority in any layoff.

Retiree medical plan, PPO, JPP pension and retiree life insurance would be eliminated.

Pulitzer: Post-Dispatch 'quality has clearly deteriorated'

Emily Rauh Pulitzer, Joseph Pulitzer Jr.'s widow, talked to St. Louis gossip blogger Jerry Berger about, among other things, the St. Louis Post-Dispatch. Pulitzer was the largest shareholder when the Pulitzer papers were sold to Lee Enterprises in 2005.

"The quality has clear deteriorated," Pulitzer said of the Post-Dispatch. "Lee Enterprises has faced a really difficult economic situation. What Lee did with the Post-Dispatch is not different from what has happened in other cities. Nobody has figured out how to deal with the Internet. Journalism is very important and without journalists with good education you don't have a democracy. Not-for-profit journalism is very important. That's where KWMU, NPR, The Beacon and the Pulitzer Center on Crisis Reporting come in."

St. Louis Newspaper Guild sponsors rally

The St. Louis Newspaper Guild will hold a vigil at 5:30 p.m. Tuesday outside the St. Louis Post-Dispatch as contract negotiations continue with Lee Enterprises. The guild also is asking its members to wear red to work in a sign of solidarity.

"I expect management will present on Tuesday, March 16, their 'last, best and final offer,'" guild business representative Shannon Duffy said in a press release. "Such an action by the management could end bargaining tomorrow. If that happens, our prayer vigil may turn into a wake -- complete with a coffin -- to mourn the passage of labor relations between the workers at our hometown newspaper, The Post-Dispatch, and the out-of-town owners, Lee Enterprises, of Iowa."

Going to Tuesday's vigil? Send photos and updates to lee.ent.watch@gmail.com

(Via e-mails)

St. Louis guild prepares for corporate campaign

The St. Louis Newspaper Guild has hired an activist and a marketing firm to help in its corporate campaign. The Post-Dispatch and the guild have been negotiating a new contract for several months. The guild fears Lee Enterprises is close to declaring an impasse.

Activist Carrie Biggs-Adams is a member of Labor Network for Sustainability and a staff representative at the National Association of Broadcast Employees and Technicians. Biggs-Adams, who has described herself as a "mobilization queen," worked with the St. Louis Newspaper Guild in 2003 when the Post-Dispatch was owned by Pulitzer Inc. Biggs-Adams is on Facebook, Twitter and LinkedIn.

Revolution Messaging is a Washington, D.C., public relations and communications firm founded by members of Barack Obama's social media campaign. Revolution specializes in social media and mobile communication. It is on Twitter.

The guild is still looking for a campaign coordinator. Contract negotiations resume Wednesday.

(Via e-mail)

St. Louis guild counteroffer: Furloughs and buyouts

The St. Louis Newspaper Guild responded to Lee Enterprise's recent contract offer for St. Louis Post-Dispatch members, which included a 10 percent pay cut and three one-week furloughs by Sept. 30, 2012.

The guild's counteroffer:

• Raises to the base wage for sales people on commission
• Unpaid furloughs in the first two years of the new contract, and the possibility of a furlough in the third year.
• Cash buyouts for eligible guild members who retire during the term of the agreement.

The guild says Lee representatives "characterized our proposal as 'disappointing' and 'unrealistic.'" Negotiations continue Friday.

(Via email)

Lee 'very, very close' to final offer to St. Louis guild

On Friday, Lee Enterprises sent what it called its "very, very close to our last, best and final offer" to the St. Louis Newspaper Guild. The new proposal includes a 10 percent pay cut and three unpaid one-week furloughs between now and Sept. 30, 2012. Previous proposals included a 15 percent pay cut in the first year and a 5 percent pay cut the next two years, but no furloughs. The guild will make a counter offer Wednesday.

The union sent its members an overview of Lee's new proposal:

5.5 year contract (This would make the contract conform to Lee's fiscal year-FY) 10% wage with three one-week furloughs between now and Sept. 30, 2012.

Possible* 2.5 % raise based on year over revenue in October 2012, 2013, 2014

*Raises are triggered by year over year revenue increases of 2% or more. Revenue is defined as total revenue of the Post-Dispatch and STL Distribution as they have historically recorded revenue.

Advertising Sale Reps-Retail sales reps, who currently have a base of $400 per week and outside sales commission employees, who currently have no base, will now have a base of $575 per week.

Retiree Medical-Eliminate

Retiree Life Insurance-Eliminate

Pension Plan-Freeze (keep the accrued benefits, but the pension would stop growing)

401K- Increase monthly contribution to $75 a month

Phones-
Newsroom: Status quo if you have a company provided phone you can keep it and the company will continue to pay for it.

Advertising: The Company will approve PDAs for all outside sales employees. Employees will be reimbursed $100 to buy a PDA and given $60 a month to plan for a minute plan.

The company is also proposing transitioning Guild members from the current accrual method of accounting for vacation to a grant system of vacation. We are still attempting to fully understand the impact of this and we'll share the details of this when the company clarifies this part of the proposal.

Seniority changes proposed by Company would give them the right to exclude up to 20% of the employees in an affected job classification in the event of a layoff.

Guild members have posted signs and tent cards to present a unified voice opposing Lee's then-proposed 15 percent pay cut. (This sign references the paper's "moxie" campaign.)

(Via e-mails)

St. Louis Newspaper Guild adds mark to win column

In a case that even the St. Louis Newspaper Guild says can get confusing, recent St. Louis Post-Dispatch guild retirees whose low-deductible medical insurance was changed to a higher plan will have their original plan reinstated, and will get cash-back for the difference.

The union has a complete recap on its website.

(Via e-mail)

Lee papers don't report company's revenue loss

At its shareholder meeting earlier this week, Lee announced its revenue in January fell 9.2 percent from the previous year.

If you already knew that, it probably wasn't from reading a Lee newspaper.

It looks like the Quad-City Times in Davenport, Iowa, wrote the official story on the shareholder meeting, which never mentions the loss in revenue. Reading the story, one would think Lee's revenue has increased.

Read it for yourself. Here it is in the:
Quad-City Times
The Chippewa Herald
The Pantagraph
Sioux City Journal
St. Louis Post-Dispatch
Times of Northwest Indiana

Have you seen the same story (or a slightly edited version) on other Lee websites? Post a link in the comments, or send me an e-mail and I'll add it to the list.

College paper queries decline of the Post-Dispatch

A St. Louis college newspaper is taking Lee to task. In an editorial titled The Post-Dispatch's decline spells trouble for all St. Louisians, the Webster University paper takes a look at the "Post-Dispatch's destruction."

A solid newspaper keeps the wolves at bay. It keeps the corrupt in check and prevents the little guy from constant fleecing. If the Post-Dispatch isn't around to speak truth to power, who will?

The editorial is similar to the St. Louis Newspaper Guild's open letter to Mary Junck.