SF Chronicle, Guild, Reach Deal That Might Prevent Closing

 

SAN FRANCISCO, CA (March 10, 2009) – The San Francisco Chronicle and the California Media Workers Guild have reached a tentative agreement on contract concessions which may stave off Hearst trying to sell or close the newspaper.

In February the Chronicle's owners, Hearst, said that if the union didn't allow them to take "dramatic steps" to "quickly reverse the deepening operating losses," and to make "significant" cuts to both union and non-union staf, they would seek a buyer or possibly close the 144-year-old newspaper.

The new agreement announced late last night expands management's ability to lay off employees without regard to seniority, reduces vacation time, sick leave, and maternity leave, expands the work week from 37.5 hours to 40, and give the company the right to subcontract any work, the Chronicle said.

The ability to lay off employees without regard to seniority means the newspaper can rid itself of older, more highly-paid employees who have a lot of seniority while keeping younger, lesser paid employees on the payroll.

The newspaper lost more than $50 million last year and is on a pace to lose more than that this year, Hearst has said.

Guild members may be able to vote as early as Thursday on the concessions. The Guild has issued a statement recommending membership approval.

Hearst said that it wants to eliminate about 150 jobs at the Chronicle. There are 483 Chronicle employees, 218 in editorial and 265 in advertising.

Chronicle publisher Frank J. Vega said in today's paper, "We will now focus our efforts on working with the Teamsters" to seek additional concessions from that union.

This week the journalism world is also watching another Hearst newspaper, the Seattle Post-Intelligener, which the company said their would either take to online only or close if a buyer didn't come forward by the end of a 60-day deadline – and today is that deadline.

 

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