Star Tribune asks to end contract with machinists

Last update: July 1, 2009 - 8:44 PM

The Star Tribune is asking the New York judge in its Chapter 11 bankruptcy reorganization to abrogate the company's contract with the International Association of Machinists and Aerospace Workers, which represents 16 workers who maintain equipment at the newspaper's Minneapolis printing plant.

The company seeks to withdraw immediately from the union's pension fund and substitute 401(k) benefits. The Star Tribune said in court filings Tuesday that the request to withdraw from the union's pension plan "represents a fair and necessary sacrifice" as part of the firm's effort to cut costs and emerge from bankruptcy.

A union representative could not be reached for comment.

The company said the machinists union is the only Star Tribune union that has not agreed to company-requested contract changes. Eight unions have agreed to pension freezes and five unions have agreed to let the company withdraw from their multi-employer pension plans in exchange for potential future company 401(k) contributions and profit sharing.

STEVE ALEXANDER

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