WAN-IFRA

Shaping the Future of the Newspaper

Date

Thu - 24.05.2012


Newspaper union to review Tribune Co. bonus plan

Newspaper union to review Tribune Co. bonus plan

A federal bankruptcy judge in Delaware has ruled to allow a union representing newspaper staff access to publisher Tribune Co.'s bonus proposal, The Associated Press reported. The bonus plan totals nearly $70 million.

This payout is the subject of a legal hearing, as the Washington-Baltimore Newspaper Guild argues that the payment is excessive and reckless, given that the company filed for Chapter 11 bankruptcy protection in December.

The guild requested access to the payment proposal as part of their case against the planned bonuses, Forbes.com reported Friday.

"At a time when media businesses are suffering incomparable losses and struggling to survive, the debtors have proposed spending $69.9 million to reward their top management for financial performance that, year-over-year, evidences declining fortunes," attorneys for the guild wrote. "While creditors face limited recovery on their claims, and most rank-and-file employees live with frozen pay and benefits, the debtors believe a proper exercise of business judgment results in millions of dollars distributed to management."

Judge Kevin Carey did agree to keep a report from the company's compensation consultant, which underlies the payout, confidential, according to the AP.

Tribune Co. which owns the Los Angeles Times, Chicago Tribune, The Baltimore Sun, The Hartford Courant and other daily papers, said that despite the bankruptcy filing the bonus payments are a necessary staff incentive.

"Incentivizing employees is essential to Tribune's future success. We must continue motivating our people to overcome obstacles, achieve our performance goals and take the company to the next level," the Tribune's COO Randy Michaels as part of the hearing, The Business Insider reported.

The hearing on whether the bonus plan should go ahead has been postponed until September.

Author

Leah McBride Mensching

Date

2009-08-12 05:19

Shaping the Future of the Newspaper


© 2012 WAN-IFRA - World Association of Newspapers and News Publishers

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