The Philadelphia Media Network, which publishes of The Philadelphia Inquirer, The Daily News and Philly.com, reached a tentative two-year contract with its union that guarantees that both papers will continue to be run as daily print publications.
According to a memo sent out by the Newspaper Guild Bargaining Committee, the company agreed to promise that no Guild members will be laid off during the first year of the contract. In return, employees must accept 2.5 percent pay cuts for 2013 and 2014. Employees at The Philadelphia Inquirer and The Daily News also must accept two furlough weeks per year. A vote to ratify the contract is expected next week.
The announcement of the deal, which came Thursday night, follows a series of contentious negotiations between ownership and employees in recent months. A group of some of Philadelphia’s powerful business and political leaders bought the news organizations last April for $55 million. While the new owners had said at the time they wanted to preseve both papers, they found themselves facing the broader challenges â€" declining advertising revenue and circulation â€" that was gripping the rest of the industry. Last month, the owners threatened to put the properties up for sale if an agreement was not reached.
On Wednesday, a coalition of business leaders and labor groups called Save Philly Newspapers was formed to fight cutbacks at the papers after they heard about threats that the group would replace experienced journalists with less experienced and less costly reporters.
Marc Stier, a spokesman for the coalition, said “We’re very pleased that they reached the agreement as it preserves the newspapers for two years and we’re especially pleased that it removes the threat to the established writers and editors who are central to great journalism in Philadelphia.â€
A spokesman for the Philadelphia Media Network did not respond to an e-mail and call for comment.
