N.Y. Post Threatens to Fold if Unions Won’t OK Cuts : Media: A lawyer for the unions says the paper is demanding $17 million in concessions. The Post says it has been hurt by a poor economic climate.

The New York Post, America’s oldest newspaper, told its 10 unions Tuesday that it would suspend publication on Sept. 15 unless they agree to $17 million in cuts, a leading labor lawyer said.

Theodore Kheel, an adviser to the city’s print unions, reported that Post management said it needed the cuts in order to survive. It has asked the unions to negotiate on the matter, starting today, he said.

A Post statement said a Sept. 15 deadline had been set for achieving the cuts. It did not mention the possibility of suspending publication that day.

Kheel, who attended a meeting between Post management and the unions, said the paper would post an official notice of closure on Sept. 15 that would take effect 60 days later.

“The Post told us this more in sorrow than in anger. It needs temporary relief,” Kheel said, adding that the paper has been hurt by a poor economic climate in New York that has drastically cut advertising and by banks that refuse to extend loans.

The 190-year-old newspaper, founded by Alexander Hamilton, is the third-largest of the city’s four newspapers. It was sold three years ago by Australian Rupert Murdoch to real estate developer Peter S. Kalikow.

Sources said Kalikow has lost $80 million since he bought the paper and it is currently losing $500,000 a week.

Richard Nasti, vice president and general manager of the paper, said in a statement: “This paper has been in New York for 190 years and, through a cooperative effort by labor and management, it will continue to serve New York for another 190 years.”

Nasti said the unions were asked to help the paper cut a total of $25 million a year in costs. “We are optimistic we will meet the Sept. 15 deadline,” he said.

Kheel said the paper wanted to save $17 million a year and would accept pay cuts rather than layoffs. Other sources said the paper wanted pay cuts of up to 30%.

Kheel praised Post management for being straightforward on the paper’s problems and for offering to open its books to the unions.

He criticized the New York Daily News, which is engaged in bitter contract negotiations with its unions.