'Probably legal'

Dateline: Sun 12 Jul 2009

An Indianapolis Guild Guild spokesman says that Gannettblog had a post explaining "transitional pay," given to fired managers at the Indianapolis Star and at other Gannett papers.

Here is the link -- and scroll down thru half a dozen or so posts to find it:


This is the essence of what this anonymous reader said on Gannettblog (rest in peace, Gannettblog):

"My understanding of 'transitional pay' is that instead of the company paying severance, it will make up the difference between your state's unemployment payment and your weekly pay. By using this program instead of a severance package, Gannett has shifted most of the burden of compensating laid-off workers to the state. That of course does mean that state and federal taxpayers ultimately foot most of Pay former Gannett workers will receive. As an aside, the company does pay a premium to the state for unemployment insurance and, like all other types of insurance, the rate increases when claims are made. So Gannett will pay more for its contribution to state unemployment through higher rates next quarter as a result of the transitional pay plan. But, obviously this is far less expensive than giving severance that includes weekly pay and insurance benefits."

Our Indianapolis Star Guild person also says that Gannett "did it to everyone not covered by a Guild, it seems"

Also, it may not be illegal in Indiana, adds the spokesperson.

"Indiana law pretty much lets companies do what they want."

More on this tomorrow....



Tell The Truth [Member] said:

I'm as sympathetic as anyone to these laid-off workers. But I gotta tell ya, I have three laid-off friends who would give their left eye to have this "benefit." They're on unemployment alone, for the first time in their lives,and struggling. And get this (I had no idea about this): they have to pay taxes on that unemployment. Insult to injury, paying taxes on a fund into which these friends have been contributing, along with their employer, for 30-45 years.

It's basic economics, Ruthie...if Gannett had the money to pay a full severance package, more of these folks might be still working.

Severance is what good companies used to do to to laid-off employees. After eight years of national leadership, which values foreign workers more than our own, are you surprised at this?

The national conversation after this megarecession, has to return to some basics. No one can hear now. The noise machine pollutes all available air space with crap.

2009-07-13 07:21:58

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