Star Workers Swallow 10 Percent Pay Cut In New Contract

Union Accepts Company Offer After Layoffs

The union representing newsroom and other employees at The Indianapolis Star has ratified a two-year contract that includes a 10 percent pay cut.

The Newspaper Guild Local 34070 said its members voted 56-45 on Tuesday in favor of the contract, which runs through August 2011 and suspends all merit pay increases.

The contract covers 185 editorial and building services employees.

Company officials have said the pay cut is necessary because of the recession.

Guild members in June voted overwhelmingly to reject a contract offer from the Gannett Co.-owned Star that called for 12 percent pay cuts.

The Star Media Group last month laid off 37 employees, including 17 in the newsroom, as part of a national cost-cutting move by Gannett.

Newspapers, particularly those in larger cities, have been bleeding cash in the midst of the recession.

A sharp downturn in display advertising, coupled with stagnant or declining circulation and huge losses in revenue derived from classifieds, have hurt the industry.