2 of 3 holdout unions at Philly newspapers set contract vote as bankruptcy deadline nears

2 of 3 holdout unions at Philly newspapers to vote

PHILADELPHIA — Creditors poised to take over Philadelphia’s two major newspapers could inch closer to a sale if three holdout labor groups approve contract offers this week.

A U.S. judge has given creditors until Sept. 14 to wrap up the thorny, 18-month bankruptcy sale of The Philadelphia Inquirer and Philadelphia Daily News.

Creditors won’t close the $139 million deal without signed contracts from the company’s approximately 15 unions, according to Bob Hall, their chief operating officer.

“They have said emphatically that they will not close without all the CBA’s (collective bargaining units),” said Hall, a one-time publisher of the Philadelphia newspapers who joined forces with the creditors. “From a risk standpoint, you really can’t.”

Unions representing hundreds of press operators and machinists are set to vote again by Wednesday, after rejecting earlier offers. If they vote yes, drivers would be the only unsigned workers.

They have balked at switching from a defined pension to a 401(k) retirement plan.

John Laigaie, president of Teamsters Local 628, which represents the drivers, did not immediately return a message Tuesday.

Joseph Inemer Jr., president of the Teamsters unit that represents press operators, wants his members to ratify the contract when they vote Tuesday. His group had previously agreed to the pension change. Other troubling contract language was revised during a recent negotiating session led by Chief U.S. District Judge Stephen Raslavich, he said.

“We’re strongly recommending it,” Inemer said. “I do see significant change in the attitude of the members.”

Raslavich reluctantly agreed to extend his Aug. 31 deadline to close the sale, but seems little inclined to allow any further delays after the heated bankruptcy case.

Creditors led by the hedge funds Angelo Gordon & Co. and Alden Global Capital won the April auction after a marathon battle with their debtors, a group of local investors who paid $515 million for the newspaper company in 2006 and fought desperately to hold on to it.

Months later, few seem eager for the creditors’ purchase to unravel. The local Newspaper Guild overwhelmingly accepted a three-year contract despite an effective 6 percent cut in pay.

Raslavich, at a hearing last week, said none of the scenarios that might ensue if the deal fails seemed “especially attractive.”

“I’m hopeful that we can make it,” Hall said. “The future of the newspapers ride on it.”