Newspaper Guild ratifies new contract with owners

The largest of the 11 unions representing employees of the Inquirer, Daily News and Philly.com ratified a two-year contract Thursday night, concluding negotiations that a company spokesman said "will stabilize the company and create a platform for future growth."

The Newspaper Guild of Greater Philadelphia, whose more than 500 members include editorial, advertising, circulation and finance employees, ratified the new deal by a vote of 200-35.

It guarantees both papers' existences for the next two years and protects the union from layoffs for a year. It also included a 2.5-percent wage decrease for 2013 and 2014.

"Our local ownership is confident about the future and remains very committed to continuing to make our company a successful enterprise," a statement from Interstate General Media LLC said. "The future now provides a path to further development of new products and the implementation of greater efficiencies in all divisions of the company."

The agreement between the Guild and IGM comes following the company's most recent round of voluntary buyouts while at the same time, the company has hired new editorial staff members at its three principal entities: the Inquirer, Daily News and Philly.com.

IGM ownership had in recent weeks threatened to liquidate the company if new contracts could not be reached with every union. And the Guild eventually agreed to negotiate a new contract despite having an agreement in place through October 2013.