Massive Layoffs Loom as Postmedia Acquires SaltWire Network
SaltWire Network, Atlantic Canada’s largest newspaper chain, is making substantial job cuts as part of its acquisition by Postmedia.
According to information obtained by the Halifax Examiner, a town hall meeting was held for SaltWire employees on Wednesday, announcing that only about 20 of SaltWire’s current 363 employees will be offered immediate positions at Postmedia following the finalization of the deal on Saturday.
Approximately 60 employees are expected to be informed within the next 24 hours that they will not be hired by Postmedia. The remaining 283 staff members will be placed in a “transitional services group,” with their future employment status to be determined by Postmedia over the coming months.
This development comes after Postmedia’s $1-million bid to acquire the insolvent SaltWire Network received court approval last week. The Canadian branch of the Communications Workers of America (CWA), representing workers at SaltWire, had previously negotiated with Postmedia, resulting in minor alterations to existing contracts.
Related: SaltWire Network: Another Canadian Media Outlet Files For Credit Protection
An report from The Albertan last week said that as the acquisition raised concerns about job security, the CWA clarified that those retained by Postmedia will continue to be covered by existing collective agreements and transferred to a comparable pension plan. The union also negotiated a lump-sum payment to assist those who lose their jobs.
The report notes that sale agreement also addresses SaltWire’s pension plan, which affects 426 members. The plan, currently 90% funded with a $6-million unfunded liability, will be wound up, with assets used to purchase annuities for plan members.
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