YAKIMA–A freeze that destroyed some of the state’s valuable cherry crop here has spread to the Yakima Herald-Republic.
Another day of negotiations failed to budge the hewspaper from its proposal for a one-year wage freeze in a new contract. Negotiators from the Pacific Northwest Newspaper Guild met Tuesday and Wednesday with representatives of the newspaper, who say the potential for a sizable increase in the cost of medical insurance is why they have proposed no general wage increase next year.
The company has proposed a 2-percent wage increase in the contract’s second year. The union, after an initial proposal of 3 percent per year, countered with 2 percent each year.
A meeting to discuss the economics of the contract will be held at 6 p.m. Monday, May 5 at the Yakima Sports Center, in the restaurant’s back room. All employees are welcome to attend the information session.The Yakima Sports Center is located at 214 E. Yakima Ave.
On Wednesday, Human Resources Director Kay Gause explained that the wage freeze would have the biggest impact on 64 employees who are at the top pay scale in their classifications. They would remain at their current rate of pay. The other 32 employees who are progressing through the experience steps on the scale would continue to receive their step increases, although the steps themselves would remain frozen at the current rates.
In the second year, the 2-percent increase would apply to everyone.
Meanwhile, the Herald-Republic hopes to keep an increase in the cost of health insurance to 15 percent next year, Gause said. During negotiations, she shared statistics on the cost of the company’s insurance claims, which have exceeded premium income 10 months between April 2007 and February 2008. Containing the increase in the new plan year to 15 percent will require changes to the benefits, she added.
The newspaper said no to most of the union’s other economic proposals, including an increase in the night differential, an increase in the mileage reimbursement and the application of night differential to holiday and sick leave pay for employees who always work nights.
Gause said any increase in wages next year would occur only if bargaining-unit employees adjust the current 75 percent/25 percent employer-employee split on the cost of health insurance. In other words, the employees would have to pay more than 25 percent.
As of April 1, managers at the Herald-Republic began paying 10 percent of the cost of health insurance, while the employer pays 90 percent.
Bargaining will continue on Wednesday, May 7.
What kind of changes would be made to health benefits was another question raised by union negotiators. Gause said there are three categories of changes being contemplated, but among the most likely changes would be increases in office and prescription co-pays.
The company also wants to eliminate the long-term disability plan, which was added to employee benefits in 1997. Seven employees from the union bargaining unit have used the plan, and some are still on disability payments. Their status will not be affected by elimination of the plan.
In a spot of good news, the employer says changes made by The Seattle Times Co. in its 401(k) plan will allow Yakima to open up enrollment a year earlier for employees, although the match will still kick in at the first of the quarter following one year.
The Yakima contract expires in October. At the employer’s request, the union agreed to launch negotiations early this year because of the planned retirement of Gause, the company’s chief negotiator.