FT union reaches deal

The following was sent out to the Financial Times newsrooms in the United States on Wednesday:

To the FT newsroom:

Big news! More than two years after we were formally recognized by the company, the FT US Guild has won its first contract. The three-year contract helps bring benefits in the US closer in line with the package colleagues in the UK receive, it helps reduce the gender pay gap in the US and makes the FT a more competitive place to work. Today is a ringing endorsement of the power unions have to improve pay and working conditions.

Here are some of the highlights of the deal:

• Retirement: The company is increasing the retirement match for US staff from 4.5 percent today to 5.5 percent starting in 2025 and 6 percent in 2026. Along with profit sharing the company has offered since at least 2018, the retirement benefit from the company rises to 7.25 percent (which compares to a 12 or 16 percentage point match in the UK scheme). That’s up from 5.75 currently. What are those extra 1.5 points worth? It all depends on when you’ll retire and how much you contribute, but assuming a 7 percent return over 20 years and minimal inflation-linked pay increases, a person earning the median $120,000 salary today would see an extra $93,000 in their 401K.

• Raises: The FT has agreed to raise the salaries of those paid the least in the US, which will go some ways toward addressing the gender pay gap. Those earning $100,000 or less will get a $3,000 raise, and those making between $100,001 and $115,000 will get a $2,000 raise.

• Parental Leave: New parents in the US will now have the option to take an additional eight weeks of unpaid parental leave. This protects both their jobs and health care plans if new parents opt to take this additional time with their newborn.

• We’ll bargain alongside NUJ for annual raises: We’ll now have a seat at the table with our union allies during negotiations for annual pay increases.

• Healthcare costs are capped: The FT won’t shift healthcare costs to members for the duration of the three-year contract. That means the FT will continue to pay 80 per cent of the premium for the cost of the Cigna Core Plan and 78 percent for the Enhanced Plan. Even if Cigna raises rates, those percentages won’t change. We also won the right for unit members to keep their healthcare plan while on creative leave.

• Salary minimums: All new hires will be offered a minimum starting salary of $75,000. Additionally, journalists employed by the FT for at least three years will be paid a minimum of $85,000 and employees with at least one direct report will be paid at least $107,500.

Those wins add to the progress we made in March:

• Grievance procedure: The deal creates a formal process to settle disputes with the company. US staff also are entitled to have a union representative from the newsroom with them during any disciplinary conversations to make sure their rights are respected.

• Severance: If US staff are laid off, they will get a week of base pay for every six months they’ve worked at the FT, with a minimum of eight weeks. So, if someone has been an employee for five years, they’d receive 10 weeks worth of their salary.

• We codified the right to a sabbatical: For the duration of the contract sabbaticals are guaranteed. Previously, there was no guarantee that this benefit — which was enshrined in the NUJ contract — would be applied in the US.

• Short-term work: To give short-term contract workers more stability, these contracts will be capped at one year. (No more six-month extensions for years on end.)

• Lieu policy codified: If a US staffer works a day outside their normal schedule, they’ll receive another day off in lieu. This policy is now legally guaranteed through the contract.

• Just cause: US staff will no longer be at-will employees. They can’t be fired unless the company can prove there was a just cause.

We’d like to thank the company for bargaining constructively with us over the past 19 months, as well as the support we received from bureaus across the globe.

In solidarity,

FT US Guild Bargaining Committee and Contract Action Team