Since its mid-January bankruptcy filing, Star Tribune management has pressured workers and contractors for concessions by noting a deadline: April 13. That’s when creditors could block the paper from continuing to draw down cash for operations.
Well, April 13 is today, and even though the newsroom’s Newspaper Guild and the paper’s drivers have not agreed to givebacks, the doors will apparently remain open.
The Guild — which faces management’s demands to give up senority, buyout guarantees and $2 million-plus in compensation cuts — has spent seven of the last 11 days haggling with management, but union executive director Mike Bucsko says creditors have apparently granted an extension. (Sorry, didn’t find out exactly how long.)
What’s interesting is that, so far anyway, management hasn’t gone to court to abrogate the newsroom deal, as it did with its pressmen. I got the sense from Bucsko that a deal could be close.
If talks falls through, is the Guild better positioned to protect itself in a debtor-friendly court? The safe bet is not much, but the Guild has steadfastly maintained its willingness to deal on the cash flow issues, not seniority. (Management hasn’t touched that protection in other deals.)
In cold-blooded business terms, ending seniority seems more about pumping up the asset value for a buyer than keeping doors open, supposedly bankruptcy’s priority. Hopefully, we won’t see this drama played out to its thrilling conclusion, but barring a late-night order, today isn’t D(eadline)-Day.
The Strib isn’t going anywhere…neither is the PP. Weeklies are toast though. The Highlander (my neighborhood weekly paper) hasn’t had an ad on the back page for months…