Journal Star retirees apparently screwed by Copley Press

3/19/09 UPDATE: Here's a tidbit from the Chicago Tribune related to the post below:

In the Illinois General Assembly, HB3923, the Health Insurance Fairness Act was pulled by a sponsor before the Health Care Availability and Acces­sibility Committee could vote on it.

Why? "Because of the pressure Democrats felt from the industry. Many (legislators) didn’t want to vote in support of the bill on the same day as a health insurance lobby day" the Tribune said.

"HB3923 aims to reform the health care system in Illinois by stopping insurance companies from denying coverage based on pre-existing con­ditions and guaranteeing affordable health insurance coverage to small businesses. The legislation, if passed, demands that insurance companies spend at least 85 percent of premiums on health care and creates an indepen­dent office to review denied claims and approve all rate increases.

"The bill has a large amount of sup­port from health organizations such as AIDS Foundation of Chicago, Illinois PIRG, AARP-Illinois and the Illinois Primary Health Care Association.
Constituents can call their legisla­tors and voice their support of HB3923 via an AARP hotline at (800) 664-9903."

Good idea! Call them. Thanks,Tribune! (The story is on the paid on-line complete edition of the Tribune, $2.50 a week and worth it.)

PEORIA -- Journal Star retirees who counted on subsidized medical benefits from the newspaper's former owner Copley Press apparently have been kicked into the ditch.

A story from the San Diego Reader states that on April 1 the company will only cover 75 percent of a COBRA policy until the end of the year.

"In trying to lure certain employees to take buyout offerings the last several years, the company had promised to pay 75 percent of medical coverage until the employee was eligible for Medicare" the story states.

This deal affected many Peoria Journal Star employees. Now they are faced with much higher costs for health benefits.

I was one of the retirees who took a buyout two years ago, but I am also eligible for Medicare, so I never scrutinized the deal for younger retirees. But some of my colleagues did so, and it seems hard to believe that they don't have a valid legal contract of some type.

Still -- contracts these days seem to be worth nothing unless you are a Wall Street executive.

So these people are royally screwed, while David Copley takes his millions (billions?) and sails away on his yacht into the sunset. He's one of the richest people in the US, and now even more so.

That's because the Copley Press's flagship newspaper, the San Diego Union Tribune also has been sold to something called Platinum Equity. Sounds like an escort service, someone commented on the Reader's website.

So -- investors will loot whatever equity is left in that newspaper and kick it into the ditch with the retirees.

Ain't capitalism wonderful? Oh, and we must not raise the taxes of the rich -- they contribute so much to our society, especially when they push loyal employees into the poverty ditch!

-- Elaine Hopkins

3/19/09 In addition: Here's another story on the Copley sale.

Here's a comment from Ed Dentino:

The buyers of businesses like the PJS and Keystone have to be watched carefully. Even if they have no insidious intentions upon their purchase, they sometimes acquire tax or accounting insight, ways to capitalize a gain and socialize a loss.

Somehow, the Europeans have not fallen for the mythical purity of corporate and capitalist bliss. Centuries of experience, literature and law have provided the watch outs and safety nets to cushion the population. Exactly the things the poo-poo people decry - especially when they are the ones needing the scrutinizing.