Star Tribune seeks to abandon union's contract

[Robbien]

Source: AP

NEW YORK (AP) — The Star Tribune of Minneapolis is seeking bankruptcy court approval to void one of its labor contracts.

Chief Financial Officer David Montgomery says the newspaper needs to save every dollar it can.

The newspaper's lawyers told a judge in New York on Wednesday that it needs $3.5 million in concessions from its pressmen union as part of $20 million in total cuts from 10 unions.

The cancellation of the contract would affect 116 union employees. The company has not said whether it would take similar action against unions representing another 600 workers combined.

The newspaper filed for Chapter 11 bankruptcy protection in January, burdened by heavy debt it took on when Avista Capital Partners LP bought it from McClatchy Co. in March 2007.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5iBBIf_8lTEpNPx9RUpFsZ9TSGHIwD96S1S502

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Two years ago Avista loaded down the Star Tribune with a $530 million debt when Avista "purchased" the paper. Avista pocketed huge profits on the deal. Now in bankruptcy court, employees are being asked to give up union benefits to pay for the servicing of the debt.

[KamaAina]

1. Call Senator Franken right now!!!!

oh, wait a minute... :eyes:

[williesgirl]

2. Plus are the newsroom employees being asked to do the same? They're always the sacred cows!

[glinda]

3. Strib was purposefully destroyed in my opinion. Can't have "good" newspapers

can we?:sarcasm:

[FiveGoodMen]

4. When they picked up Kersten, it was over for me.

I think she's gone now, but too little, too late.

[glinda]

5. They let go the better people and stuffed it full of conservatives for the most part

I was very sad when I saw that happening because I knew what it meant. I grew up with that paper and my father worked there temporarily years ago and I hung at the bar/Red Wagon with some of them. The good ol' days are gone..... sob*.

[CatholicEdHead]

6. Yep, gutted for a quick buck and idology