Meanwhile, at the bankruptcy west of the river, the Star Tribune is reporting that management wants to toss out another labor contract over pension issues.

This time, it's the machinists' union, a 16-person local that reporter Steve Alexander notes is that last holdout at 425 Portland.

According to court docs, the pattern established in the pressmen's and drivers' disputes is again playing out. The union has agreed to cuts: $475,000 annually — half from four buyouts, the rest from remaining employees. (This works out to about $20,000 per survivor.)

Management wants to save $70,000 more by ending its pension contribution and withdrawing from the International Association of Machinists' multi-employer fund.

Most importantly, the Strib wants to avoid a potential multi-million penalty for exiting the increasingly underfunded IAM plan. As in the past, it argues creditors won't assume ownership of the company unless the liability is largely wiped out.

In a classic example of "race to the bottom," Strib restructuring consultant Paul Huffard says the machinists simply can't hold out when other unions have given in.

"The Company’s credibility will be undermined if it permitted the Machinists to remain in the IAM Fund because the Star Tribune’s agreements with nine of its ten unions included an across-the board effort to reduce pension costs," Huffard argues in a filing.

In all likelihood, management will get their way on pensions, as they have in the other cases. Both times, unions eventually cut deals rather than leave it up to the judge, sometimes in exchange for small concessions.