The Future of Print

MediaPost Publications ‘Star Tribune’ Files Bankruptcy, ‘Cleveland Plain Dealer’ Issues Pay Cuts 06/22/2009

Posted in Doom by futureofprint on June 22, 2009

Two of the Midwest’s biggest newspapers, struggling to stabilize their finances, are implementing further cutbacks including wage cuts and unpaid furloughs. The reductions at The Plain Dealer in Cleveland and the Star Tribune in Minneapolis are part of an industry-wide retrenchment as publishers confront plummeting ad revenues and a credit crunch.

At The Plain Dealer, owned by Advance Publications, 500 union workers belonging to the Northeast Ohio Newspaper Guild Local 1 and Teamsters Local 473 agreed on Thursday to take a total wage reduction of 12%, which includes an 8% reduction in actual pay and 11 days of unpaid furlough.

This is the second round of pay cuts and unpaid furloughs at the paper; the first round, including a 10-day unpaid furlough, hit non-unionized employees in March.

Separately, the Star Tribune of Minneapolis submitted a Chapter 11 bankruptcy reorganization plan to the U.S. bankruptcy court for the Southern district of New York last week. If the plan is approved, the paper could exit Chapter 11 bankruptcy protection as early as this fall.

via MediaPost Publications ‘Star Tribune’ Files Bankruptcy, ‘Cleveland Plain Dealer’ Issues Pay Cuts 06/22/2009.

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