Bargaining Update: Those Q1 Results, Though

IAPE and Dow Jones bargaining committees met in Princeton yesterday morning for a short session to review the company’s latest contract proposal. The meeting ended well before News Corp released its first quarter results for fiscal year 2024.

Probably a good thing.

Once again, Dow Jones has been heralded as having a best-ever quarter, with an increase in segment EBITDA for the quarter to $11 million, or 10%. Adjusted Segment EBITDA increased 9%. These results represent “the highest first quarter profit margins since News Corp’s acquisition in 2007,” according to a company statement.

Meanwhile, back at the bargaining table, there was no discussion of wage increases as management opted to present a “select issues” proposal focusing on return to office issues, health care plan design and a response to IAPE’s proposal to increase job security.

In October, IAPE identified more than 300 separate departments—and seniority groups—the union believes can and should be compressed into a smaller number of distinct teams, resulting in larger departments and, presumably, greater seniority protection against layoff for longer-term members.

Yesterday, Dow Jones responded with its own examination of News departments listed in the union’s Oct. 3 proposal. The good news is, the company has largely agreed with IAPE. The not-so-good news: certain areas of News—like the Washington Bureau and the Video Desk—management believes must remain in its current structure of narrowly defined, distinct departments.

IAPE will review and respond.

On return to office, the company has modified its proposal and has offered to guarantee a three-day cap on in-office work through March 31 of next year. It had previously offered a commitment through the end of 2023. IAPE’s current proposal calls for a three-day limit through Dec. 31, 2024.

On health care, two points separate IAPE and Dow Jones from an agreement on POS II plan design for 2025 and 2026: plan deductibles and coinsurance. The union and management had previously reached agreements on CDHP and Basic plan structures.

There was no discussion yesterday of proposals to increase plan premiums. Dow Jones also did not respond to a union request to lift the “confidential” veil from health insurance proposals, but pledged to get back to IAPE by Monday.