As management at The Canadian Press has outlined, the company continues to struggle through some big changes and difficult financial challenges.
We are disappointed that once again, one consequence of these challenges will be a loss of jobs and overall reduced staff levels.
While we realize that The Canadian Press is not immune to the effects the recession has had on the media industry, we do not believe that laying people off will help the company accomplish its goals of building new revenue-creating ventures.
Ultimately, the employees who remain will once again be carrying the load.
As the company carries out its staff reduction plan, the Canadian Media Guild will work with affected employees to ensure that they are treated fairly and in accordance with your collective agreement in all respects, including the use of bumping rights.
The agreement sets out clear rules governing how layoffs must be carried out by the company, and the rights of employees under the process.
At the same time, the Guild will continue to hold discussions with the company, as it has for several weeks now, to mitigate the effects of staff reductions, through the collective bargaining process and other avenues. This will include things like potential work-sharing arrangements and retraining opportunities.
Regarding the restructuring of The Canadian Press, we are at least encouraged that investors have come forward to help The Canadian Press seek new sources of revenue. The Guild was informed of the names of the investors in January but was asked to keep the matter confidential until discussions could take place with CP’s Board of Directors.
Even before then, Guild representatives (pension trustees Scott Edmonds and Craig Wong, Branch President Terry Pedwell and staff rep Kathy Viner) entered into detailed discussions on the terms of an agreement on how contributions made by employees will be treated.
As you will recall, The Canadian Press was granted a special pension regulation which provided the company temporary relief from making solvency payments to the pension plan. Employees also agreed to give up regular employer contributions for a three-year period, with an understanding that they would be compensated for the value of those contributions. Further, the Finance Minister agreed to recommend a second regulation, provided a completed restructuring plan to restore the viability of The Canadian Press was in place by May 1, 2010.
The details of this restructuring plan ? specifically as they pertain to Guild members’ foregone contributions – are now being finalized.
As you heard from Eric Morrison, the investment made by Guild members is now being treated as a loan to The Canadian Press. This was not something the Guild sought but we have negotiated the best deal we can. We were willing to discuss ways to keep our investment in the company, but the investment approach in place doesn’t really contemplate private equity participation.
Although it’s not the equity stake contemplated when the deal was reached last year, it keeps pension plan members “whole” from a pension perspective. The money will be paid back with interest, and during the time the loan is outstanding those who made a contribution will be eligible for profit-sharing in the new Canadian Press.
Once completed, the proposed agreement will be presented to all Guild members at staff meetings similar to those which were held last year. We expect these meetings to take place over the next few weeks.
The Guild also will continue to work with The Canadian Press to achieve the desired outcome – support from the Finance Minister as well as OSFI, the pension regulator, for a second pension regulation.
If you have any questions, feel free to speak with Pension Trustees Scott Edmonds and Craig Wong, staff rep Kathy Viner or myself.
Terry Pedwell, President
Canadian Press Branch
Canadian Media Guild