Star Tribune bankruptcy imperils 1,400 Minnesota jobs

[Omaha Steve]

http://www.workdayminnesota.org/index.php?news_6_3919

By Steve Share, Labor Review editor
1 February 2009

MINNEAPOLIS - The Star Tribune's move to file for Chapter 11 bankruptcy puts 1,400 local workers' jobs in limbo.
About two-thirds of the workers at the state's largest newspaper are union members.

The eight unions at the Star Tribune face the likely prospect that the newspaper will use bankruptcy proceedings, filed on Jan. 15, to persuade a judge to impose concessionary contracts, union leaders fear.

The newspaper remains profitable, but has been unable to keep up with debt payments taken on when New York's Avista Capital Partners bought the newspaper two years ago in a highly leveraged deal — borrowing 80 percent of $530 million purchase price.

"The debt's dragging them down, not us," said Mike Bucsko, executive officer of the Minnesota Newspaper Guild, whose just under 300 members are the largest bargaining unit at the newspaper.

Three different Teamsters locals represent the newspaper's mailers, drivers and pressmen while four additional unions also represent smaller groups of workers.

FULL story at link.

[WCGreen]

1. There you have it....

Greed is good for owners and a disaster for the working stiffs.