Press Release: Austin NewsGuild pickets on Congress Avenue Bridge

AUSTIN, Texas — Austin American-Statesman staff who are members of the Austin NewsGuild will picket at noon CST Friday on the Congress Avenue Bridge. 

The former headquarters of the Austin American-Statesman at 305 S. Congress Ave. will serve as a backdrop for the protest.

The members of the Austin NewsGuild are gathering to demonstrate for fair pay, benefits and transparency weeks after its parent company, Gannett, announced buyouts, suspension of the company’s 401(k) match and furloughs. Gannett CEO Mike Reed delivered the news via a 6-minute, pre-recorded message on Oct. 12. In August, the company had announced layoffs and loss of 400 open positions. 

Guild members have been protected against layoffs, furloughs and the loss of the 401(k) match as they negotiate their first contract. Managers and editors, however, have lost their 401(k) match and will be taking furloughs in December. Compounded with the company’s announcement that it will only fill “critical” staff positions, the furloughs will likely lead to gaps in important coverage that the community deserves.   

The Austin NewsGuild won an Unfair Labor Practice charge in December 2021 over the company’s unilateral suspension of its members’ 401(k) match, which the NLRB found to be a violation of status quo protections that are in place while the contract is negotiated.

The Guild is fighting for a fair contract to ensure that the company spends its money more wisely by investing in staff and community coverage instead of exorbitant executive pay and stock buybacks. 

Many Statesman employees have not had raises for more than five years, making it difficult to retain staff. Local news coverage and the newspaper’s ability to be a watchdog for the community have been hampered by the company’s decisions to cut staff and coverage, such as running the Opinion section only three days per week instead of daily. 

“Reed paid himself $7.74 million in 2021, and in February the company obtained $50 million in loans for a stock buyback. Once again we’re forced to see our colleagues suffer as a result of our CEO’s poor decision-making,” said Veronica Serrano, Austin NewsGuild’s Bargaining Committee Chair. “Reed likes to blame headwinds, but analysis by The NewsGuild has shown competitors Lee Enterprises, News Corp and the New York Times have increased revenue under the same economic conditions.”

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