'Star-Ledger' Publisher: Drivers Union Key to Paper's Future

By: Joe Strupp Despite an agreement by its largest union to take about 100 buyouts and accept a three-year wage freeze, The Star-Ledger of Newark, N.J. could be on the selling block as early as Oct. 9 if other cost-cutting demands are not met.

Publisher George Arwady, in a memo to employees Tuesday morning, praised the 400-person Teamsters Local 1100, which represents mailers, for voting 183-18 on Monday on a new agreement that extends to 2012 and includes the wage freeze and buyouts.

He also said that it appears the 200-person buyout of non-union workers is expected to be achieved before the Oct. 8 self-imposed deadline.

But Arwady stressed in the memo that a new agreement by the 90-person Newspaper Mail and Deliverers Union, which represents drivers, has yet to come to fruition.

" ? the only stumbling block to meeting the three conditions is ratification of an agreement by the Drivers," the memo stated. "We hope that they will take the steps necessary to ratify their draft agreement by the deadline or else The Star-Ledger will be put up for sale on October 9."

Drivers union leaders have not responded to requests for comment this week.

The entire Arwady memo is posted below:

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To: Star-Ledger Employees
From: George Arwady
Date: September 23, 2008
Re: Update


As I have informed you, we need to meet three conditions by October 8 in order not to sell or close by January 5, 2009.

I am happy to be able to share some very good news with you. The Mailers union voted 183-18 yesterday to ratify a new agreement, thereby fulfilling one of the three conditions.

Meanwhile, we expect that our goals for the voluntary buyouts will be met, with 9 days still left for non-bargaining-unit employees to sign up. That will fulfill a second condition.

Therefore, the only stumbling block to meeting the three conditions is ratification of an agreement by the Drivers. We hope that they will take the steps necessary to ratify their draft agreement by the deadline or else The Star-Ledger will be put up for sale on October 9.