Inquirer ownership, largest union reach tentative pact

After a marathon negotiating session, the ownership of The Inquirer, the Philadelphia Daily News, and Philly.com and the news outlets' largest union reached a tentative agreement Friday night on a new two-year contract.

The company's contract with the Newspaper Guild of Greater Philadelphia was set to expire at 12:01 a.m. Sunday. Union members voted this month to authorize strike planning.

Philadelphia Media Network, which operates the news outlets, had said it would continue publication in the event of a strike.

The bargaining session began at noon at a Center City office and lasted until 11 p.m. Details of the contract were not released.

The company, owned by philanthropist H.F. "Gerry" Lenfest, and the union had been at odds over health-care costs and seniority protection.

In an e-mail to employees Tuesday, Lenfest acknowledged he has "given substantial donations over the years to charitable institutions," but said the company "is not a charity but rather it is a business, and as such, it must be self-sustainable. I have invested in the company without any expectation of financial rewards, but rather because of my belief that these institutions are worth preserving."

The company, like the newspaper industry in general, faces continued economic challenges, Lenfest said, "and we all have to work together to do what is needed to ensure the long-term viability of the newspapers and Philly.com."

The Guild's contract expired in February, and a federal mediator has been involved in bargaining sessions since April.

The union, which represents many editorial, advertising, and circulation workers, has contended that its health and welfare fund, which pays the members' insurance costs, is facing a $2.8 million shortfall in the coming year. The company had offered $700,000 on top of its current annual contribution of $2.9 million. The employees currently contribute $1.1 million annually in paycheck deductions and would need to make up the difference in the shortfall, according to the union.

Members would have to contribute from $1.6 million to $1.8 million to keep the fund afloat, union president Howard Gensler had said.

The other big issue was seniority protection. Management wanted more flexibility if it decided to lay off employees, not being bound solely by how many years they had worked at the company. The union said it was open to saving younger workers, with safeguards so older employees were not targeted.

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