UPI Says Its Staff Will Be Paid; 80 Fired in Cutback

United Press International said Saturday that it will soon be able to cover its 1,850 employees’ 3-day-old paychecks, but it began issuing termination notices to about 80 workers.

UPI Chairman Luis Nogales, in a written message, said that the firm had reached “an agreement in principle” with its major lender to cover the wages, probably by early this week, and to continue the firm’s recapitalization plan. That agreement had been expected.

Owes $20 Million

As part of the plan, UPI, which owes creditors about $20 million, intends to file for protection under Chapter 11 of the federal bankruptcy laws. UPI’s board of directors agreed to take the action Friday. Sources said that the filing probably would occur Monday in Washington.

UPI, the world’s largest privately owned news service, issued a statement late Saturday, after several inquiries, saying that it was eliminating about 100 positions, 20 of which it said were already vacant as the result of normal attrition. The step was taken to reduce operating costs, it said.

Those dismissed were equally divided between editorial and non-editorial employees in this country and in Europe. They were notified late Friday and early Saturday in telegrams or calls.

The company said in its statement that it has taken steps “to increase revenues by passing through a 9.9% increase in rates to subscribers.”

“Nogales wrote to subscribers (last week) explaining that the increase and the company’s staff and cost reductions were essential elements in the recapitalization plan,” the statement said.

‘Favorable Response’

The letters are to arrive early this week, but UPI said that it already has notified most of its subscribers of the increase. The company said it has received “a favorable response.”

Last September, UPI had a payroll of 2,000. But, amid mounting financial problems, the staff has been reduced to about 1,850 through layoffs and dismissals, the company said.