Indy Star Guild Gets Raises For Employees, But Could Lose Up To Eight Jobs

The Indianapolis Newspaper Guild and the Indianapolis Star have reached an agreement that awards pay raises to most workers, including the lowest-paid, but gives parent company Gannett the right to outsource up to eight jobs.

The Guild reports that covered workers will receive raises of 2-4 percent, with the highest raises going to the lowest paid workers. (The Star imposed a 10 percent pay cut in 2009, so this is only the first step toward restoring workers’ pay to pre-recession levels.)

But the company was “unyielding” in its insistence that page design work would be outsourced out of state to be designed at a center in Louisville. “We made a strong case…that this could damage the local news product,” guild vice president Adam Yates wrote. “But it became clear that this was an edict from Gannett, The Star’s parent company, and that the quality of the product was a secondary consideration to saving money.”

Six to eight jobs will be displaced (but it’s unclear how many will be hired in Louisville, if any, to replace them).

Finally, Yates said, “The pay raises, while not fully restoring our 10 percent cuts from two years ago, were significant. Our industry is still in job and pay cutting mode. And newspaper unions around the country are still facing cuts such as the ones we took two years ago.

“That we could squeeze out even these modest raises was a testimony the efforts of our workers and our friends in the community and the breadth of our public campaign…We will continue our efforts to Save the Star.”

Publish date: February 17, 2012 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT