The Providence Journal Company
75 Fountain Street, Providence, RI 02902

THOMAS J. McDONOUGH
HUMAN RESOURCES DIRECTOR

401-277-7205
401-277-7217 FAX
thomas_mcdonough@ projocom

 May 15, 2001

Dear Fellow Employee:

As you know, one of the many regrettable disputes we have had with your Guild leadership had to do with an interpretation of a wage provision in the expired collective bargaining agreement. After we had given 3.02% increases to all employees for 1999, the Guild leadership took an incorrect and literalistic interpretation of the gainsharing contract language, demanding that we add an additional 1.02%.

We did our best to negotiate this dispute, pointing out that among other things, the question should be best resolved between the parties as part of overall contract negotiations. As has unfortunately been their recent approach, the Guild chose to litigate and went to arbitration for this extra 1.02%.

The Arbitrator bought the literalistic argument made by the Guild and came down with an incorrect arbitration award that missed the fundamental point that companies and unions should negotiate wages and not attempt to get increases through technical interpretations. We are more disappointed by the fact that your leadership and administrator would bring this claim. The contract said the Guild would get the same raise everyone else received. You did. Your leaders saw a technical loophole and exploited it in litigation. It is consistent with their short-term view and their lack of a strategic plan to close on a contract.

Despite the fact that we are convinced that the Arbitrator was wrong, we have decided not to follow the Guild's approach and litigate this extra 1.02%. We are therefore paying the 1.02% that resulted from this arbitration award. With this letter is a check for retroactive a to you consistent with the Arbitrator's award.

We would hope that anyone with common sense would understand that litigating over 1.02% rather than engaging in meaningful negotiations is not in anyone's best interests over the long-haul.

.


Sincerely,
Thomas J. McDonough /ph

 
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