The Star Tribune is asking a bankruptcy court to reject its contract with unionized drivers and allow it to implement the terms of its last offer.
The newspaper is seeking to cut labor costs by $20 million a year as it prepares to emerge from Chapter 11 bankruptcy. The delivery truck drivers’ union is the last major bargaining unit that hasn’t agreed to concessions.
Star Tribune publisher Chris Harte said the two sides couldn’t agree on pension changes.
A Teamsters local spokesman didn’t immediately return a call for comment.
The Star Tribune filed for bankruptcy in January under pressure from plummeting ad sales and heavy debt taken on when Avista Capital Partners LP bought the paper from McClatchy Co. in 2007.