Monday, September 13, 2010

Philly newspaper union rejects latest creditor group offer

The members of Teamsters Local 628, representing drivers of Philadelphia's two daily newspapers voted 191-4 to reject the latest contract proposal which would have changed the drivers pension plan to a 401K program.

"I think the membership felt that it's not fair for these investment companies that are buying the place to throw their biggest investment out the window, which is their pension," local union president John Laigaie said according to the AP.

This is the second time in the past month that members have overwhelmingly rejected the company's offer. Machinists, presented by a separate union, as well as reporters and other members represented by the Newspaper Guild, have already agreed to long term concessions in exchange for short term promises of jobs.

The creditors group, made up of the hedge funds Angelo Gordon & Co., Alden Global Capital and CIT Group Inc., are currently attempting to close on its take over of the newspaper group. A judge had previously given the group until August 31 to complete its deals with the various unions, but recently extended the deadline -- which now expires Tuesday.