Sun-Times to close Pioneer Press printing plant in Northfield

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Posted by chicagomedia.org on September 03, 2009 at 07:27:14:

Sun-Times to close Pioneer Press printing plant in Northfield
September 2, 2009 9:56 PM

Chicago's struggling Sun-Times Media Group Inc. plans to close its Pioneer Press printing plant in suburban Northfield, idling about 70 workers represented by the Newspaper Guild of Chicago.

The news comes as Sun-Times Media Chairman Jeremy Halbreich called union leaders to the company's River North headquarters for a meeting Thursday.

Halbreich said he plans to provide the unions with an update of his efforts to sell the Chicago Sun-Times' parent company, which filed for bankruptcy March 31 and is in danger of running out of cash.

He wouldn't comment specifically on sales talks, but other sources close to the situation say the company remains confident a deal is near, with the leading suitor still a group led by Jim Tyree, chairman of Chicago's Mesirow Financial Holdings Inc.

Tyree didn't return a call for comment.

What's clear is that if a sale is coming, it had better come soon. Sun-Times Media had just $19.3 million on hand July 31, and some experts estimate it is close to running short of the cash it would need to shut itself down.

Despite the plant closing and other cost-cutting efforts, union officials expect any deal would require them to make permanent a 15 percent cut in compensation they agreed to in the spring. The original agreement called for wages to be reset upon a change in control. But one source said workers expect to be asked to rescind that clause, given the company's situation.

"You gotta believe that any deal would be contingent on keeping the books where they are right now," the source said.

Halbreich said instituting permanent cuts would be logical, but that any decision of that sort would be up to a potential buyer.

Tom Thibeault, the guild's executive director, confirmed the Northfield closing and said the work would likely be outsourced to Milwaukee, though no deal has been signed. The union is negotiating severance and other benefits for workers.

"We're just trying to get the best deal for our people," Thibeault said.

--Michael Oneal and Julie Johnsson, Chicago Tribune

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: Sun-Times to close Pioneer Press printing plant in Northfield : September 2, 2009 9:56 PM : Chicago's struggling Sun-Times Media Group Inc. plans to close its Pioneer Press printing plant in suburban Northfield, idling about 70 workers represented by the Newspaper Guild of Chicago. : The news comes as Sun-Times Media Chairman Jeremy Halbreich called union leaders to the company's River North headquarters for a meeting Thursday. : Halbreich said he plans to provide the unions with an update of his efforts to sell the Chicago Sun-Times' parent company, which filed for bankruptcy March 31 and is in danger of running out of cash. : He wouldn't comment specifically on sales talks, but other sources close to the situation say the company remains confident a deal is near, with the leading suitor still a group led by Jim Tyree, chairman of Chicago's Mesirow Financial Holdings Inc. : Tyree didn't return a call for comment. : What's clear is that if a sale is coming, it had better come soon. Sun-Times Media had just $19.3 million on hand July 31, and some experts estimate it is close to running short of the cash it would need to shut itself down. : Despite the plant closing and other cost-cutting efforts, union officials expect any deal would require them to make permanent a 15 percent cut in compensation they agreed to in the spring. The original agreement called for wages to be reset upon a change in control. But one source said workers expect to be asked to rescind that clause, given the company's situation. : "You gotta believe that any deal would be contingent on keeping the books where they are right now," the source said. : Halbreich said instituting permanent cuts would be logical, but that any decision of that sort would be up to a potential buyer. : Tom Thibeault, the guild's executive director, confirmed the Northfield closing and said the work would likely be outsourced to Milwaukee, though no deal has been signed. The union is negotiating severance and other benefits for workers. : "We're just trying to get the best deal for our people," Thibeault said. : --Michael Oneal and Julie Johnsson, Chicago Tribune

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