Toledo 'Blade' Suspends Dental and Vision Benefits for Union Workers

By: Joe Strupp The Blade of Toledo, Ohio, which has been in a bitter labor struggle with several unions seeking new contracts, has suspended dental and vision coverage for all union members until the end of the year in an effort to address a shortfall in the paper's benefit fund.

In addition, the Blade's Health and Welfare Trustee Board, a joint management/union group that oversees policies surrounding benefits, is asking members of the Toledo Newspaper Guild -- the paper's largest union -- to pay an extra $39.30 per week to keep its current health benefits stable.

"Our finances do not support continuing it the way it was," said Luann Sharp, an assistant managing editor and a Blade spokeswoman.

Larry Vellequette, spokesman for The Toledo Council of Newspaper Unions and one of the three union representatives on the board, said the decisin was unanimous, but still objected to it. "It is unfortunate," he said. "It is a settlement to the conundrum that we face."

The benefits belt-tightening decisions occurred during a special meeting Thursday of the trustee board, which is comprised of three management representatives and three from the paper's eight unions. Sharp, who had served on the board, but resigned Thursday, said the trustees have the power to temporarily suspend the dental and vision coverage, but require approval from the guild to increase their contributions.

"It is just a suspension hoping the cash flow will improve by the end of the year," she said. The paper has more than 500 unionized workers, including 350 in the guild unit alone.

The trustee board oversees all union benefits, including health, dental, vision, prescription drugs, life insurance, death benefits, and retirement benefits. The benefit funds are comprised of contributions from both employees and the paper, which are determined during bargaining, not by the trustees board.

Sharp said the trustees had been dealing with a shortfall in the fund since July 1 when benefit costs increased some 10%. She said the trustees have used reserves to help offset the shortfall, with as much as $40,000 per month being diverted.

Vellequette had said Thursday prior to the meeting that the fund was not in a crisis state, noting that the reserve has $1.4 million. He reiterated that view Friday. "There is money sufficient in the reserve,"

The benefit changes are coming as all but one of the paper's eight unions continue to work without a contract after their last agreements ended in March. Five of those bargaining units have been locked out for at least a month, a situation that means none of them are making payroll benefit contributions to the fund.

The guild remains on the job, but without a new contract. It is not known how soon the guild would consider the increased benefit contribution request.