Star Tribune attempts to restructure union deals

The Minneapolis Star Tribune, which entered Chapter 11 bankruptcy protection last month, is close to several agreements with different unions representing many of its employees, according to MinnPost.com.

The Star Tribune is moving apace on a key component of its reorganization in bankruptcy court: seeking new deals with its labor unions.
Teamsters Local 638, which represents drivers, could decide as early as tonight on an offer from the company, said the local's business agent Mark Rime.
Two other Teamsters locals also are well into considerations of new contracts.

The paper was forced to file for Chapter 11 protection after net earnings fell by nearly 50 percent in 2008.
According to the article, some of the unions are arguing that the paper's debt obligations, and not labor costs, are responsible for the present financial situation.
However, it appears they will have to make more concessions to help keep the paper running.

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