Press Release: Journalists at Gannett-owned newspapers in Texas, California file ULP charge

FOR IMMEDIATE RELEASE: June 10, 2021

Journalists at Gannett-owned newspapers in Texas, California file ULP charge

Recently unionized papers in Austin, Palm Springs seek reinstatement of 401(k) match

AUSTIN, Texas, and PALM SPRINGS, Calif. — Gannett is refusing to resume matching employee 401(k) contributions at two recently unionized newspapers, a clear violation of status quo rights afforded to unions and an overt display of discrimination against employees participating in union activity.

In response to Gannett’s refusal to provide this basic benefit to employees at the Austin American-Statesman and the Desert Sun NewsGuild as they undergo the lengthy process of bargaining a new union contract, unions at both papers have filed Unfair Labor Practice charges with the National Labor Relations Board. 

"A 401(k) match is a standard benefit for any media company, and Gannett can demonstrate today that they're committed to strong, sustainable journalism by restoring it,” said Katie Hall, chair of the Austin NewsGuild.

Christopher Damien, chair of the Desert Sun NewsGuild, said restoring the 401(k) match in these newsrooms is the right thing for Gannett to do.

“Our newsroom made significant sacrifices during the pandemic, much like workers in all industries, and did so in support of our community’s health and according to the guidance of health authorities,” Damien said. “But as California returns to pre-pandemic working conditions, Gannett is asking us to negotiate for the return of essential benefits, like our 401(k). This is not only unfair to our shop members who sacrificed their benefits in good faith, it’s a misappropriation of collective pandemic measures for an individual company’s profit. 

“We did the right thing, now it’s Gannett’s turn. Give us back our benefits.”

401(k) match

In July 2020, Gannett CEO Mike Reed announced in a company-wide email that Gannett would temporarily suspend matching employee contributions to 401(k)s as part of broader cost reduction measures implemented the same year. Gannett employees were also subject to pay reductions and furloughs.

At the time, Reed emphasized that suspending Gannett’s 401(k) match was a temporary measure and that the benefit would be reinstated at a later date. Since then, the company has repeatedly stated that contribution matching would resume in July 2021.

When Gannett suspended its 401(k) match in July 2020, journalists at the Austin American-Statesman and The Desert Sun had not unionized.

Both newsrooms won union certification through National Labor Relations Board elections in February 2021, roughly six months after Reed’s announcement.

Status quo violation

Under the National Labor Relations Act, after winning an election, guilds are protected under status quo, which prevents the employer from making unilateral changes to wages, hours and terms and conditions of employment during the period of time prior to the collective bargaining agreement being reached.

The Austin NewsGuild and the Desert Sun NewsGuild are both in the process of negotiating their first contract and therefore status quo protections still apply. The company 401(k) match is part of the status quo.

Despite this, Gannett is insisting that both unions bargain over the match without first reinstating the status quo.

Not only is Gannett’s conduct a violation of the status quo doctrine, but its conduct is coercive and interferes with employees’ Section 7 rights under the NLRA because it  targets and unlawfully penalizes them on account of their decision to vote in the union.

In response, the guilds filed Unfair Labor Practice charges with the NLRB on June 1. The process is expected to take several months. 

Contact the Austin NewsGuild: austinnewsguild@gmail.com