By Tali Woodward

In a sign that relations with a key labor group are deteriorating, the San Francisco Chronicle has given the union that represents journalists and salespeople at the paper 10 days to accept a labor agreement that management characterizes as its "best offer."

Of the five unions still negotiating contracts with the Chronicle, the Northern California Media Workers Guild was believed closest to resolving its disagreements with management (See "Hearst's Hit Man," 7/13/05).

But according to a "Guild Bargaining Bulletin" dated July 15, Chron management says the paper's losses have recently grown to more than $2 million per week, leaving them no time for "extended negotiations."

The proposed contract would cut vacation and sick time, eliminate a program that allows parents of young children to work part-time, reduce pensions, and prohibit guild members from honoring picket lines. (The bulletin doesn't mention layoffs, but sources say they expect to lose 120 positions.)

The bulletin says that many of the proposed changes – like eliminating sabbaticals – would have little effect on company finances.

Guild president Michael Cabanatuan is quoted as saying, "Knowing that the company is sustaining huge losses, we've worked with them in a straightforward, cooperative, and, frankly, very patient manner, but they've decided to resort to strong-arm tactics. We're hoping there's still a chance for reason and collaborative effort to prevail."

Cabanatuan could not be reached at deadline.

Chronicle spokesperson Patricia Hoyt confirmed that the company has asked the union to accept the offer by July 25, and said, "We can't imagine we would be giving them a better offer than what's on the table." She declined to discuss the details of the proposal or confirm the paper's weekly losses, though she did say, "Our losses are worse than they were at this point last year."

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