Newspaper union accepts givebacks ahead of sale

[Omaha Steve]

http://www.google.com/hostednews/ap/article/ALeqM5glxOfykG3nlYV8gDvbmHhDG5k1eAD98G9JT80

By DAVID SHARP – 1 day ago

PORTLAND, Maine (AP) — The Portland Press Herald's largest union voted overwhelmingly Friday to accept wage and benefit concessions designed to pave the way for the Seattle Times Co.'s sale of its Blethen Maine subsidiary. A union official said he expects the deal to close by mid-June.

Members of the Portland Newspaper Guild voted 161-19 in favor of a new contract that includes a 10 percent wage cut, a two-year pay freeze, a pension freeze and a two-year suspension of 401(k) contributions. In return, employees get a 15 percent stake in the company.

Bangor native Richard Connor, editor and publisher of the Times Leader in Wilkes-Barre, Pa., has been negotiating to buy the Press Herald, the Morning Sentinel in Waterville, the Kennebec Journal in Augusta and other Blethen Maine properties.

He thanked the union for its months of work "to reach what we believe will be a turning point for all three Blethen Maine newspapers."

Newspaper Guild President Tom Bell said concessions from the union — along with an unknown number of layoffs — represent members' contribution to an ownership stake. Under the deal, three union representatives will serve on the board of the company.

"The bottom line is this newspaper could've gone bankrupt. They could've shut their doors and just sold the buildings, the assets. But instead our workers have found a way to keep the company going and to keep the newspapers in business," Bell said.

FULL story at link.