Creditors who won the bankruptcy auction for Philadelphia's two largest newspapers - the Philadelphia Inquirer and Philadelphia Daily News - are keen on settling the remaining unresolved union contracts before closing the $139m sale.
While the Chief US Bankruptcy Judge has recommended closing the sale by Tuesday, the new owners -- a financial consortium led by the hedge funds Angelo Gordon & Co, Alden Global Capital and CIT Group Inc -- are particular about signing all 14 union contracts before the close. However, some contracts remained unsigned on Monday.
Union contracts by newspaper delivery-drivers are understood to be one of the unsigned ones. They have rejected an offer from the new owners to provide a 3 per cent match of individual 401k contributions, reportedly on fears of losing their defined pension contributions.
However, reporters, photographers and other members of the local Newspaper Guild accepted concessions including a 2 per cent wage cut and two weeks of unpaid leave each year of the three-year contract, in return for a promise from the new owners to avoid newsroom layoffs for at least a year.
Other union employees such as the mailers, porters, security guards, and mechanics have also accepted the new contract offers.
