Mix of relief and anxiety for newspaper unions

IS THIS A NEW beginning . . . or the beginning of the end?

Wary union leaders at the Daily News and Inquirer were asking themselves that question yesterday after a group of hedge funds and financial institutions emerged as the newspapers' new owners.

"There is most certainly a sense of relief that this long and gut-wrenching bankruptcy process is just about over. But there's also fear of what's ahead," said Diane Mastrull, the Inquirer/Daily News unit chairwoman for the Newspaper Guild of Greater Philadelphia, which represents newsroom and advertising employees.

"We have contracts to bargain with owners we don't even know," said Mastrull, an Inquirer business reporter. "We hope their desire to engage in such robust bidding for our papers is an indication that they, like us, see the value of these great papers and the employees that put them out each day."

As news of the purchase spread yesterday afternoon, phone lines were lighting up at the blue-collar unions' headquarters.

John Laigaie, president of Teamsters Local 628, which represents delivery-truck drivers and other employees, was disappointed that the local ownership group didn't prevail in the bankruptcy auction. That group was backed by Brian Tierney, chief executive of Philadelphia Newspapers LLC.

The hedge funds and investment firms - including Angelo, Gordon & Co., Alden Global Capital and others - that won the auction had initially included a provision in their bid that called for terminating the entire work force and rehiring just more than half of the employees. That provision was later scrapped, but it spooked some of the unions, which considered it a declaration of war.

"They showed some of their true modus operandi by having that in the bid," Laigaie said, adding that he was willing to negotiate a new contract, "but if they come in without saying they're willing to maintain the status quo during bargaining, then there's going to be a serious problem."

Joseph Lyons, president of the Philadelphia Council of Newspaper Unions, which includes all the company's unions other than the Guild, said of the ownership change: "What's happening across the country is now coming to our doorstep. I guess it's our turn. Regardless of who turned out to be the owners, we're still facing the same problems.

"It's going to be a tough situation," Lyons said.

Joseph Inemer, president of the pressmen's union, said he expects more job cuts but was comforted to hear that Bob Hall, former publisher of the Daily News and Inquirer, would have a major role in negotiations.

"You need a certain amount of people to get the product out," Inemer said. "It's like we're down to eight players on a baseball team. We can't cut too much more, but we'll listen."