Judge extends order on Inky pensions merger

April 11, 2008 2:11:37 PM PDT
A federal judge is extending his temporary restraining order on the merger of two pensions at The Philadelphia Inquirer and the Philadelphia Daily News. Judge Berle Schiller issued the ruling late Thursday, continuing the order until May 23.

The Newspaper Guild of Greater Philadelphia is suing Philadelphia Newspapers LLC for merging two pensions without its consent. The union says merging a fully funded pension into a severely underfunded one would not be in the best interests of the beneficiaries.

The company says it has the right to do so because a Guild deadline has passed.

Management also says benefit payouts will not change. But if the merger is undone, the company will have to shore up the underfunded plan and that could lead to layoffs.