Posted by chicagomedia.org on January 07, 2009 at 22:23:40:
Sun-Times unions asked to take compensation cut as papers seek new ways to trim costs
Feeling the economic squeeze despite previous deep cuts, already pinched Chicago newspapers are looking a little harder for new ways to reduce costs.
All unions representing workers at the Chicago Sun-Times and its area sister publications were asked Wednesday by management to accept "a 7 percent overall reduction in their compensation packages to help the company stay viable in 2009 and beyond," Newspaper Guild leaders informed newsroom staff in a memo.
This comes after the Chicago Tribune did not publish its weekly magazine on Sunday, the first of five weekends on or around 2009 holidays in which there will be no Chicago Tribune Magazine printed.
A page 2 note to Tribune readers on Sunday acknowledged the magazine's absence and pointed to its return this weekend. The paper did not mention the supplement also will not be included in its editions of July 5, April 12, May 24 and Sept. 6 as part of a bid to save on production costs.
It already was noted that Tuesday's print edition of the Sun-Times had no business section, although it did include a half-page of business news. A spokeswoman cited space limitations, explaining by e-mail that it "was a one-off situation, just as your paper has had to make adjustments."
Chicago Tribune parent Tribune Co. filed last month to reorganize under Chapter 11 bankruptcy protection despite continued profitability, having taken on considerable debt a year earlier.
The board of the Sun-Times Media Group, meanwhile, on Wednesday reiterated its call for investors to reject a shareholder campaign to reduce the number of directors and replace all but one. At issue beyond control are strategies on how best to restore value and profitability.
The company is asking the unions at its Chicago-group properties to agree to the cut in compensation -- a category that includes wages, health-care and pension contributions, vacations and holidays -- as part of its effort to cut $45 million to $55 million in annual operating expenses.
A previous $50 million reduction was offset last year by steep revenue declines, reflective of industry-wide struggles that have been aggravated by the economic downturn.
"It is important to note that none of the unions committed to anything at this meeting," the Sun-Times' Misha Davenport and Bob Mazzoni, unit co-chairmen for the Guild, wrote to fellow reporters and editors at the paper. "The union reps in attendance rightfully wanted to meet with their members to get their feedback about management's request."
The Sun-Times' spokeswoman responded to questions about the Guild memo by pointing to the company's earlier announcements concerning plans to reduce expenses.
(Phil Rosenthal, Chicago Tribune)