Union explains conditions of Postmedia's acquisition of SaltWire newspaper chain

HALIFAX -

A national union that represents workers at Atlantic Canada's largest newspaper chain says conditions demanded by Postmedia in its bid to buy the insolvent SaltWire Network are not as bad as some observers had feared.

Sean Fitzpatrick, a lawyer who represents the Canadian branch of the Communications Workers of America (CWA), confirmed the union agreed to alter contracts for the editorial staff it represents at the Halifax Chronicle Herald and the Cape Breton Post in Sydney, N.S.

But Fitzpatrick says those changes were minor alterations, which included changing the name of the employer from SaltWire to Postmedia.

"There were some really straightforward, housekeeping changes," Fitzpatrick said in an interview. "There were no substantive, material changes to the terms (of collective agreements)."

As well, Postmedia had demanded the union release any successor rights claims that might be filed by unionized employees working in the Halifax-area plant that prints the Chronicle Herald.

Successor rights, as spelled out in provincial legislation, ensure than when a company's ownership changes, the collective bargaining rights of unionized employees remain protected.

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Some labour experts had said that giving up successor rights would amount to a major concession by the CWA, but Fitzpatrick said the change will have little impact because Postmedia is not buying the plant in suburban Bedford, N.S. Fitzpatrick said successor rights will remain in place, even if the plant is sold to a new owner.

Still, Postmedia has made it clear it plans to cut jobs in the months ahead, which has left SaltWire's 363 employees and 800 contractors feeling anxious. About 100 of those jobs are unionized.

The CWA negotiated with Postmedia after the Toronto-based company had reached a tentative deal to buy SaltWire for $1-million last month -- an agreement that received court approval last Thursday. The transaction is expected to close by Aug. 24.

During the court hearing in Halifax on Thursday, it was confirmed that SaltWire's pension plan would be wound up, a move that will affect 426 pension plan members. Court heard the plan is 90 per cent funded with a $6-million unfunded liability.

At the time, CWA Canada president Carmel Smyth stressed that the pension plan was protected even though it would no longer be receiving contributions from Postmedia. On Friday, CWA Canada issued a statement saying some of the money owed by Saltwire to the pension plan would be paid, but no figures were released. The statement went on to say that the plan's assets will be used to purchase annuities for all of the plan members.

"These annuities will provide the plan members with payments that are comparable to the pension benefits that the pension plan has been providing or would provide," the union said.

As for job losses, the union said it was aware of the stress caused by impending cutbacks.

"Media workers and union members across the country share the deep disappointment of Nova Scotia's media workers, and community," the statement said. "Losing or downsizing any media organization is never a good thing. Especially in this environment where quality news is so needed and appreciated."

The CWA, however, stressed that those who are kept on by Postmedia will continue to be covered by existing collective agreements and will be transferred to a comparable pension plan. As well, the union said it had negotiated a lump-sum payment that will be used help those who lose their jobs.

In Newfoundland, the union that represents 37 workers at the daily Telegram in St. John's -- Unifor -- issued a statement saying it is worried about SaltWire's wide-format printing plant in St. John's, which Postmedia chose not to buy. The press is the last of its kind in the province, and there is growing concern among the union that the Telegram will move to online publication.

Unifor said that during the court proceedings, the union was not asked for any concessions affecting members of the local that represents reporters, photographers, printing press operators and staff in the newspaper's advertising and business departments.

In Tuesday's edition of the Telegram, SaltWire's chief operating officer, Ian Scott, is quoted as saying more than 30 people are expected to lose their jobs when the presses and the building that houses them are sold off. The building has been on the market for more than a year.

"If the press equipment cannot be sold as operating gear, it will likely be sold for scrap," Scott told the Telegram.

SaltWire also owns the Guardian daily newspaper in Charlottetown, where workers filed for union certification with the CWA in October. The union also represents editorial staff at The Canadian Press.

This report by The Canadian Press was first published Aug. 13, 2024.

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