The following is a statement by The Newspaper Guild of St. Louis-CWA:
In an act of corporate greed, Lee Enterprises (NYSE: LEE), owner of the St. Louis Post-Dispatch and other newspapers, is canceling company-paid health insurance for scores of retirees, the Newspaper Guild of St. Louis announced today. Retirees will protest outside the Post-Dispatch building, 900 North Tucker Boulevard, in downtown St. Louis, at 10 a.m. on Tuesday, Dec. 15.
The move affects about 100 retired Guild members and dozens more management retirees. Many will lose their health coverage because they can’t afford the premiums. Some couples will have to pay nearly $1,200 per month to continue coverage under company plans.
The union expects Lee to cancel coverage for dozens of other retirees once the current union contract expires.
“Lee is trying to increase its profits on the backs of the sick and elderly. The greed and venality of this profitable corporation know no bounds,” said Shannon Duffy, business administrator for the union, which represents news and advertising employees at the paper.
While stiffing retirees, executives of Lee continue to rake in cash for themselves. CEO Mary Junck received compensation worth $2.5 million in the 2008 fiscal year, according to the company proxy. Chief Financial Office Carl Schmidt was paid $1.2 million.
“For executives to enrich themselves while cutting health care for the elderly is morally repugnant,” said Duffy.
“Lee is reneging on a promise made to men and women who dedicated their working lives to the Post-Dispatch,” said Duffy. “That promise was explicit in union contracts.” In many cases, company representatives repeated that promise personally to employees when they were considering retirement.