Nova Scotia judge to decide fate of Atlantic Canada's largest newspaper chain

The Chronicle Herald headquarters, SaltWire Network Inc.'s flagship newspaper, is shown in Halifax on Tuesday, March 12, 2024. (THE CANADIAN PRESS/Darren Calabrese)

HALIFAX -

A Nova Scotia judge is expected to decide Thursday whether to approve Postmedia's $1-million bid to acquire Atlantic Canada's largest newspaper chain.

The court hearing in Halifax follows intense negotiations between the Toronto-based company and a union representing some workers at SaltWire Network Inc. and The Halifax Herald Ltd., the two insolvent media companies behind newspapers and online publications in Nova Scotia, P.E.I. and Newfoundland and Labrador.

Postmedia has said the deal will fail unless the companies wind up their pension plans, and it is demanding that unionized editorial staff in Halifax and Cape Breton agree to change their collective agreements in ways that are "satisfactory" to Postmedia.

As well, Postmedia wants unionized staff running the Halifax Chronicle Herald's presses to give up their successor rights under the Nova Scotia Trade Union Act, which means those positions would no longer be unionized once the deal closes, but only if the union agrees.

Liam McHugh-Russell, a law professor at Dalhousie University in Halifax, says those demands may sound like ultimatums, but they actually represent a starting point for negotiations with the union.

"There's always a question of what that bargaining results in," said McHugh-Russell, who specializes in labour law. "All of the conditions that Postmedia have set, they can decide to waive those conditions and still go through with the purchase."

As for the unions involved, the negotiations are being led by CWA Canada, an independent arm of the U.S.-based Communications Workers of America. The Canadian union includes the Halifax Typographical Union, which represents 19 members in the Chronicle Herald newsroom and eight in the press room.

CWA president Carmel Smyth declined a request for an interview Wednesday, saying the union was limited in what it could say, given "a lot of moving parts" and a tight time frame.

"The union is working around the clock to ensure these important media outlets continue running and serving the community, while preserving as many local jobs as possible," she said in an emailed statement. "That means finding the best deal possible for the largest number of workers in a very unfortunate set of circumstances."

The CWA also represents unionized employees of The Canadian Press through the Canadian Media Guild.

Postmedia Network Inc. owns the National Post, Vancouver Sun, Calgary Herald, Ottawa Citizen and dozens of other publications across the country. The company describes itself as the largest publisher by circulation of paid English-language daily newspapers in Canada. It signed a purchase agreement with SaltWire and The Herald on July 25.

The Halifax Herald Ltd. owns The Chronicle Herald, an independent daily newspaper that was founded almost 200 years ago.

In 2017, the owners of the Herald -- Mark Lever and his wife Sarah Dennis -- created SaltWire Network Inc., which bought more than two dozen newspapers and web-related properties owned by Transcontinental Nova Scotia Media.

Those publications include the Cape Breton Post in Sydney, N.S., the Guardian in Charlottetown and the Telegram in St. John's, N.L., as well as weekly papers and several digital publications.

As of last week, SaltWire and The Herald had 363 employees and 800 independent contractors. About 100 of its employees are unionized.

CWA Canada represents workers at nine Postmedia newspapers and at four SaltWire properties: the Chronicle Herald, the Cape Breton Post, Charlottetown Guardian, and the Journal Pioneer in Summerside, P.E.I.

For more Nova Scotia news visit our dedicated provincial page.