Star Tribune, union reach tentative agreement (275 workers)

[Omaha Steve]

http://www.google.com/hostednews/ap/article/ALeqM5j4ENvXjJXbjgmB-1376I5Obbin1gD97P23901

MINNEAPOLIS (AP) — A tentative three-year contract agreement has been reached between the Star Tribune and the union representing nearly 275 newsroom workers.

The agreement reached by leaders of the Newspaper Guild, the largest union at the newspaper, includes a 3 percent cut in base wage scales and a 30 percent reduction in any merit pay above those scales. It also calls for two days of unpaid furlough in each of the next two years, a freeze in some pensions and a reduction in severance.

The tentative deal leaves the company with one remaining major union contract to resolve, covering the company's drivers. The newspaper earlier reached deals with various unions representing pressmen, mailers and typographical workers.

The newspaper wants to cut union labor costs by $20 million a year as it works to emerge from Chapter 11 bankruptcy protection in New York. It filed for protection from its creditors on Jan. 15 as the declining advertising market put pressure on the heavy debt burden the newspaper took on when Avista Capital Partners LP bought it from McClatchy Co. in March 2007.

Newspaper Guild leaders at the Minneapolis newspaper said that union's concessions are worth $1.7 million, not including the pension freeze.

The new contract, which would begin Aug. 1, still needs to be ratified by union members, which also include a few in promotions and circulation.

FULL story at link.