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Denver Newspaper Agency deadline for union concessions approaches

$18 million of givebacks sought by Jan. 16

By Jeff Smith, Rocky Mountain News (Contact)

Published January 6, 2009 at 12:05 a.m.

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SPECIAL SECTION » The Rocky Mountain News is for sale. On December 4, 2008, E.W. Scripps, the owner of Colorado’s oldest newspaper, said if a buyer does not step forward it will pursue other options – including closure.

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The Denver Newspaper Agency is running out of time to get $18 million of union concessions by its stated Jan. 16 deadline.

Only the Teamsters, which represents two of the six unions involved, has started looking at the agency's books after signing a nondisclosure agreement, said Tony Mulligan, president of the newspaper agency's six-union council.

The Communications Workers of America, which represents three unions including the Denver Newspaper Guild - by far the largest union in the agency - is still working to get an auditor to Denver to take a look at the financials, Mulligan said.

There's also a union representing eight platemakers.

Union leaders have said they won't even consider reopening their labor contracts until they look at the newspaper agency's financial documents.

The Denver Newspaper Agency is a joint operating agreement between Dean Singleton's MediaNews Group, which owns The Post, and E.W. Scripps, owner of the Rocky Mountain News. The agency handles the business operations of the papers, but the newsrooms of the two are separate.

In mid-December, Singleton asked the unions to reopen their contracts immediately. In addition to wanting $18 million of concessions from the agency, he requested $2 million from The Post newsroom.

Newspaper agency officials followed with a letter saying the new contracts needed to be concluded by Jan. 16 so the agency could attempt to renegotiate $130 million of debt.

"If that fails, the financial health of DNA will be even more significantly impacted than it has been to date, and the employer will have to consider all options available to it," wrote Missy Miller, newspaper agency senior vice president of human resources.

Newspaper agency spokesman Jim Nolan declined comment Monday on why the debt needs to be renegotiated and the significance of the Jan. 16 date.

Mid-January also is the deadline Scripps has issued for finding a buyer for the Rocky. Scripps has said it wants to exit the Denver market.

Union officials say they haven't been told why the loan must be renegotiated. The loan has a favorable interest rate and isn't due in full until October 2010, according to regulatory filings.

Ordinarily there would be little incentive for the agency to renegotiate the loan, but it could be compelled to do so by its lenders if it has violated or is in danger of violating the terms.

Comments

  • January 6, 2009

    6:36 a.m.

    Suggest removal

    LOUIE writes:

    Hopefully the unions are willing to give some and maybe even that won't be enough. I do hate to lose this liberal voice that brings out conservatives like myself and gets me thinking once in awhile. A lot of great opinions, a lot of laughs, few tense moments, it's all good! I will miss the morning "thud" at my front door at 5 am, my dogs going to miss yaping at the delivery driver. Why Hell, the whole house and all God's creatures will miss that morning thud on the door! Good Luck, hate to lose this paper; Post just isn't my cup of tea. Only place I really enjoyed commenting on or discussing issues in a very informative manner reading the opinions of others; one other paper, but it wasn't near as fun or informative as the opinions and comments rendered here.

  • January 6, 2009

    9 a.m.

    Suggest removal

    Dub writes:

    So, hows that union thing working for you? About like all the other unions, huh?

  • January 6, 2009

    9:12 a.m.

    Suggest removal

    bxwatso writes:

    With Detroit teetering on extinction, private sector unions are just about ready to die off. I expect that reality will assure a bunch of subsidies from Washington, along with the supremely unpopular 'card check' method of organizing new unions.

    Why not shut down the presses in Denver and move them to Wyoming, where politicians can't mess things up?

  • January 6, 2009

    9:19 a.m.

    Suggest removal

    dl1011 writes:

    Scripps ,the owner, has said that it wants to exit the Denver market. It doesn't matter how much the unions will give up. The owner of this newspaper will sell if it can find a buyer, otherwise they are outta here. Goodbye Rocky.

  • January 6, 2009

    11 a.m.

    Suggest removal

    FCZ writes:

    Private sector unions are almost all dead.

    They have killed the gravy train.

    Government unions will kill the taxpayers.

    .

  • January 6, 2009

    11:07 a.m.

    Suggest removal

    SlouchingTowardBoulder writes:

    The irony here is that the unions' main nemesis as far as the two papers is Singleton and it is his paper that will survive.

  • January 6, 2009

    11:46 a.m.

    Suggest removal

    JustSayin writes:

    Obviously Dub, bxwatso, and FCZ are looking forward to the return of the days of poor houses, child labor, lax or absent workplace safety measures, and a return to the 50-60 hour weeks and no vacations. And, of course, the ability of bosses to fire at a whim.

    You will get the country and the economy that you deserve.