Providence Newspaper Guild - Guild Leader January 20, 2000

GUILD LEADER

Vol XI, No. 9

TNG/CWA Local 31041

January 20, 2000

401k: ProJo Holding Back the Money

The Providence Journal is refusing to give Guild members what everyone else in the company has: the Belo 401k.

Over 72 percent of Guild members would receive more money from the company under the Belo 401k. In addition, almost everyone else would come out head either by beginning 401k withholdings or by making a small increase in their 401k withholdings. (The Guild has proposed that the company provide employees the higher or the Belo or the Journal benefit)

While the Belo 401k is not without flaws: the company matching contribution is only in Belo stock. Over the long term, because the initial match is higher, with has the potential to be worth more.

The Belo 401k plan is one of the benefit enhancement the Journal gave to non-Guild employees to offset the loss of a personal day, higher medical costs, and lesser medical plans.

In the case of the Guild, the company has illegally substituted the less generous Belo program without offering anything improvement, such as the Belo 401k and pension to offset them.

What is the 401k worth?

Under the current 401k plan you receive $2.10 for every shift you work. In addition, if you put your own money into the 401k, the company adds $3 per week. The maximum company contribution is $13.50 per week.

In contrast, the Belo 401k matched employee contributions at a rate of 55 percent to a maximum of 6 percent of your income. (You are allowed to put more than 6 percent in the 401k, but there is no company match for the additional money.) There is no employer contribution if you do not put your own money into the 401k.

ProJo 401k:
Number of weekly shifts
X
$2.10 (to maximum of $10.50)
+
$3.00 (ONLY if you contribute to 401k)
=
Total weekly ProJo 401k contribution

Belo 401k:
Weekly wage
X
401k % contribution (to a maximum of 6%)
X
55%
=
Total weekly Belo 401k contribution
(Note: The Belo match is in Belo stock)

The more you contribute to the 401k (up to 6 percent, the greater the value of the Belo plan.