Sun-Times Media to close printing plant in Chicago

Chicago based Sun-Times Media Group has announced plans to close the Pioneer Press print plant with the expected loss of seventy jobs. The plant publishes a variety of local area community newspapers.

Sun-Times spokeswoman, Tammy Chase, confirmed the closure of the Northfield plant but couldn't provide any further details leaving it unclear as to where the Chicago area community newspapers would be printed in the future. Sun-Times recently introduced a series of job cuts in an effort to reduce costs as it's reorganised after bankruptcy. The seventy workers due to lose their jobs at the Northfield plant are represented by the Newspaper Guild of Chicago and Chase explained that executives from Sun-Times were meeting with union leaders to discuss the progress of efforts to sell off the parent company, which filed for bankruptcy on 31st March. Jeremy Halbreich, the Sun-Times Media chairman, yesterday called the union leaders to a meeting at the company's River North headquarters. Although Halbreich didn't comment on the progress of the sale there is speculation that the company is confident that a group led by Jim Tyree, chairman of Mesirow Financial Holdings in Chicago is close to finalising a deal. According to the Chicago Tribune experts say that Sun-Times need to make the sale soon, believing that the company is coming close to running out of the money required to close itself down. This is based on the company having only $19.3 million (£11.7m) at the end of July. Union officials believe that even though the company has tried many cost cutting efforts, including the closing of the printing plant, they would still need to take a 15 per cent cut in the compensation they agreed to earlier in the year. It's believed that workers will be expected to rescind a clause in an original agreement which stated that if there were a change in control in the company, wages would be reset. A source said, "You gotta believe that any deal would be contingent on keeping the books where they are right now." Jeremy Halbreich said himself that cut were logical but the decision could only be taken by a future buyer. The executive director of the Guild, Tom Thibeault, said that although no deal had been finalised it seems that the work from the plant will be outsourced to Milwaukee. The union is currently negotiating severance deals for the workers. Thibeault said, "We're just trying to get the best deal for our people."