Skip to main content

Postmedia CEO Paul Godfrey walks through the National Post newsroom in Toronto.

DARREN CALABRESE/The Globe and Mail

The publisher of some of Canada's largest English-language daily newspapers says it plans to sell two properties in British Columbia and Alberta in a bid to reduce costs and pay down debt.

Soon to go on the market will be the Kennedy Heights printing plant in Surrey, B.C., and the Calgary Herald building, announced Postmedia newspapers Monday.

The Kennedy Heights plant produces the Vancouver Sun and the Province.

Story continues below advertisement

TC Transcontinental Printing will begin producing the Calgary Herald in November, and Postmedia said it has asked union representatives in Vancouver to "develop alternatives" to the Kennedy Heights plant.

A spokesperson for Postmedia could not be immediately reached for comment.

"Union officers will be consulting with our legal counsel and meeting with members to discuss our next steps," said Unifor local 2000, formerly the Communications, Energy and Paperworkers Union, in an online statement.

The statement said union representatives were informed about the decision Monday by Postmedia CEO Paul Godfrey, who presented two possible options.

One option for the company in British Columbia would be to open a new plant, but only if the company and the union could reach an agreement that would cut costs by 70 to 75 per cent. Such an agreement would need to be in place by mid-November, the union said.

If that doesn't happen, the union said the company plans to contract out printing to Transcontinental. The union said the company already has a contract in place with Transcontinental.

The union's statement noted its collective agreement stipulates "there will be no involuntary loss of employment of any regular employee during the life of the contract as a result of" contracting out.

Story continues below advertisement

Gary Engler, vice-president of Unifor local 2000, declined to elaborate on the statement but said members were going to meet at the plant Monday night.

Postmedia owns several newspapers, including the National Post, Vancouver Sun and the Ottawa Citizen.

The media company announced in July it recorded a loss of $112.2 million in the most recent quarter. Its operating loss was $95.6 million, compared to an operating income of $4.1-million in the third quarter of 2012.

In July, Moody's Investors Service downgraded Postmedia's rating to negative from stable due to the media company's declining cash flow as it transitions to a digital business.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter