The Teamsters union that represents drivers at the Star Tribune said in a strongly worded legal brief Monday that cancellation of their contract and elimination of funding for their pension plan would "likely" result in a strike that would hamper the newspaper's ability to print and deliver the product.
Local 638, which represents nearly 158 full-time equivalent workers, accused Star Tribune management of making a run on its pension plan in the "11th hour" after the union had agreed to 92 percent of the concessionary items sought to stop losses at the revenue-challenged and debt-burdened paper.
The Teamsters' filing was in response to a motion by the company two weeks ago seeking federal bankruptcy court approval to abrogate the union's contract after talks stalled over the company's insistence on withdrawing from the Teamsters' Central States pension fund. The company contends that would save another $1 million a year. The company also asked the court to cancel a $20 million withdrawal fee.
The Teamsters' response said it believes that pressmen and mailers at the newspaper, both of which are in different Teamsters' locals, would honor a drivers' picket line. No strike deadline has been set. The company and unions representatives declined to comment late Monday. Negotiations resumed Monday, according to sources familiar with the talks.
In a letter to the drivers last month, Star Tribune Publisher Chris Harte said a strike would be "unnecessary" and "unwise."
"We have preparations in place and would continue to operate if [a strike] were to occur," Harte said. "And while the company could replace striking workers in order to continue running its business for its other employees, advertisers, and readers, we very much hope that it will not come to that."
In its brief, the union said: "Without the pressmen, the mailers and the drivers, it would be difficult, if not impossible, for the Star Tribune to effectively print and distribute the newspaper. In short a strike is likely to be disastrous for the Star Tribune, the secured creditors, the unsecured creditors, and the other stakeholders."
Because of that, the union said, efforts to reject its contract should be denied.
A hearing on the Star Tribune motion is scheduled for next Tuesday in U.S. Bankruptcy Court in New York.
Last week, members of Local 638 authorized its leaders to call a strike in anticipation of the bankruptcy court voiding their contract. They contend that pension benefits would be reduced for existing workers and some retirees if they were pulled out of the financially troubled Central States fund.
The company and the union have been negotiating for a year on a new collective bargaining agreement. The company said the sides had reached agreement on almost $4 million in savings but stalled over the pension fund.
The Star Tribune said its lenders, who are owed about $400 million, would not agree to exchange their debt for equity if the company faces such pension liabilities. The company also has sought and obtained pension payment relief from its other unions by freezing or withdrawing from their plans. It has already reached labor agreements with its other major unions.
David Phelps • 612-673-7269
