Mediator Expected to Join AP Contract Talks as Dispute Grows

By: Joe Strupp A federal mediator on Tuesday is expected to enter contract negotiations at The Associated Press, where union and management leaders are at odds over new ethics proposals viewed as too broad by guild negotiators.

Among the issues on the table, aside from the usual wage hike disagreements, is a request by AP executives that reporters covering financial markets divest themselves of all stocks, part of an overall ethics policy that guild leaders claim is "exceptionally overbroad."

"What they have now is a general ethics policy that involves anything that would be conflict of interest," said Karl Jendretzky, deputy administrator for the technical unit of the News Media Guild Local 31222, which represents some 1,700 AP workers. "This [proposed policy] breaks it down more." Specifically, the proposal would require reporters covering financial markets to give up all stock holdings within a year, he said.

Guild Local President Tony Winton said the stock issue is just one of several elements of the proposed ethics policy that he contends amount to "limiting our expression of opinion."

"It is too broad and sweeps in people who are not in the news chain," Winton adds. He said the provision that drew the most concern states that no "expression of opinion in a public setting" would be allowed. He says that is not clearly defined.

In a memo to staff obtained by E&P, AP Vice President for Human Resources Jessica Bruce acknowledged the divestiture proposal, noting that the news service had originally sought an immediate change, but agreed to give reporters a year from the date that the contract is enacted. "In order to limit the impact of market fluctuations, the AP has suggested a reasonable transition period and agreed that those employees would have up to one year to divest of stock holdings," Bruce said in the memo.

Bruce did not return calls seeking comment Monday.

The memo also noted that AP executives had asked a federal mediator to join the negotiations, which began in October. The editorial unit, which represents about 1,500 U.S.-based employees, saw its last contract end Nov. 30. The technical unit, comprised of some 210 workers, has been without a contract since May 2003. The units have been bargaining jointly following a merger last summer, Jendretzky said.

"Each contract has different issues," Jendretzky said. "In the technical unit, the big issues are a no-layoff clause they want to remove and other clauses related to automation benefits and jurisdiction over our work." The automation clause, in place for about 50 yeas, requires AP to provide a buyout package to technical workers whose jobs are eliminated due to technical advances, he said.

In the editorial unit, one dispute involves a proposed two-tier pay system for older and newer editorial workers, Jendretzky contends. He said new employees would have a different pension plan and no economic differential for working in more expensive cities.

On the salary front, Bruce's memo states that management is offering a 9.35% pay hike over three years, with a pair of 2% raises, retroactive to May 2003 and May 2004, for technical employees who have not had a raise since 2001. "AP's proposed wage improvements are generous at a time when other news media organizations are rapidly cutting jobs, eliminating costs and freezing wages," the memo added. "In these uncertain economic times, AP believes that it has done its very best to provide economic security for its employees through this wage offer as well as by folding differentials and fees into base pay."

Jendretzky claims the union wants a 10% per year pay hike. He says the growing workload for editorial employees -- from increased multimedia video and web coverage -- requires a higher pay raise. "The multimedia job is the wave of the future," he said. "If we are doing more, we should get more."

Finally, the union wants to require each of the 1,500 editorial employees covered by its bargaining agreement to pay the annual dues, which come to about 1.5% of salary, Jendretzky said. He says only about 60% of members currently pay dues and none are required to pay under the previous agreement. The technical unit already has a mandatory dues provision.

"We are providing a good service to people who are taking advantage of a guild contract," he said. "People will take free over pay everyday. We are standing our ground."

Bruce countered that argument. "We have always believed that our employees should have the right to choose voluntarily whether or not they wish to join a union or pay dues," she said in the memo. "AP has operated successfully with an open shop for many years."