By: E&P Staff The Canadian Press reports that Canwest Global Communications newspapers' unions were asked discuss concessions as the company faces restructuring to cope with debt of $3.9 billion (Canadian).
In a copy of a provided to the Canadian Press by the company, Canwest Newspaper Operations President and CEO Dennis Skulsky suggested a 5% wage cut for all Canwest newspaper employees would result in $C20 million in savings a year and could help the company avoid bankruptcy.
Representing workers at five of the Winnipeg-based group's papers, the Communication Workers of America/SCA Canada told CP it thought similar letters were sent to other union leaders at Canwest newspapers.
"We are urging Canwest to provide complete financial information and if it does, we would be open to further discussions," CWA/SCA Canada director Arnold Amber said in a statement. "The focus of any talks now should be how to ensure that the newspapers we work for succeed in their cities," he continued. "We know just from the numbers that have been made public that five per cent wage concessions are not going to go far in solving Canwest's overall debt, so we need to take a broader view about the problem at hand."
Canwest seeks a deal by mid-July after having received extensions from bondholders while it worked to sell assets and renegotiate debt. It recently received about $175 million in financing from U.S. investors but may have to install new management in any restructuring.
The owner of the National Post and dailies across the country also operates the Global TV network and has overseas broadcasting assets. It took on considerable debt upon purchasing Hollinger's Southam newspapers and other assets in 2000 for $C3.2 billion. Canwest incurred additional debt was incurred when it acquired niche cable TV channels two years ago.
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