Journal Sentinel Inc. has agreed to negotiate with the Milwaukee Newspaper Guild over changes to the Journal Communications pension plan, after the Guild filed a grievance on the issue.
That grievance protests the company’s decision to offer veteran employees a choice of retirement plans — continuing in the pension plan or freezing current benefits in exchange for a 3% company contribution to the 401(k) plan — but to replace traditional pensions with 401(k) contributions for everyone hired after May 1 of this year. The grievance argues the changes, particularly for new hires, were too drastic for the company to impose without bargaining with the Guild.
Meanwhile, the company has indicated it will set up meetings in September to discuss the pension changes with employees. The Guild urges you to pay close attention to how the changes would affect you. Your individual financial circumstances will determine whether you would be better off staying in the traditional pension plan or taking the 401(k) contribution.