The Journal Register Co. has appealed to U.S. bankruptcy court for permission to cut ties with unions representing 220 of its employees, the Wall Street Journal reported.
The publisher seeks to eliminate various pension obligations and impose a 15 percent salary decrease on employees belonging to the unions in question. Papers filed by the company with the bankruptcy court state the moves are necessary to reach a projected $2.6 million in savings through labour cutbacks. Employees at the company's Detroit papers may also have certain policies, such as overtime pay, called into question.
The cost-cutting measures are integral in the company's filing for Chapter 11 bankruptcy protection; if they do not take place, creditors may not be supportive of the bankruptcy plan, according to the Wall Street Journal.
The proposal comes as no surprise to union president Dave DeLong, who pointed out that the company had warned of this possibility in February.
Before filing Chapter 11 in late February, the Journal Register had already imposed cost cuts and eliminated almost a third of its staff in the three years leading up to the filing, the Wall Street Journal reported.
Unions affected by this proposal include the Newspaper Drivers and Handlers, the Graphic Communications Conference, Local13N, the Newspaper Guild of Detroit, Local 22, and the Detroit Mailers Union, No. 40.

