The Sun-Times Media Group Inc. has asked its union employees to take a 7 percent cut in compensation, according to published reports and a union memo.
Parent of the Post-Tribune, Pioneer Press and SouthtownStar, the company lost $168 million in the third quarter and plans to cut $50 million from its 2009 budget through reductions in operations and compensation. It reportedly will close 12 of the weekly Pioneer Press publications on Jan. 15 as part of those efforts.
Tammy Chase, director of investor relations for the Sun Times Media Group, replied Thursday to questions about the proposed compensation cuts by referring to a memo sent to union members Wednesday by Misha Davenport and Bob Mazzoni, co-chairs of the Sun Times unit of the Chicago Newspaper Guild .
The memo states that top company officials met with representatives of all unions that represent employees of the Sun-Times and its sister publications. Editorial employees at SouthtownStar are not represented by a union.
"During this meeting, management asked all the unions for a 7 percent overall reduction in their compensation packages to help the company stay viable in 2009 and beyond," the memo states. "Compensation can take the form of wages, health care and pension contributions, vacations, holidays or any combination thereof that will help the company meet its goals of trimming $50 million from its 2009 budget."
It also states that none of the union leaders committed to anything at the meeting and would meet with their members to get feedback about management's request.
Aside from the Post-Tribune, Pioneer Press and SouthtownStar, the Sun Times Media Group includes the Chicago Sun-Times, Pioneer Press, Naperville Sun and newspapers in Joliet, Aurora, Elgin and Waukegan.
Papers being closed by the Pioneer Press, which was purchased by the Sun Times Media Group in 1989, include the Algonquin Countryside, Arlington Heights Post, Cary-Grove Countryside, Des Plaines Times, Elk Grove Times, Hoffman Estates Review, Mount Prospect Times, Niles Herald Spectator, Palatine Countryside, Proviso Herald, Rolling Meadows Review and Wheeling Countryside.
