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UPI Seeks More Concessions

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From Associated Press

United Press International is asking its union-covered employees for contract concessions to replace a temporary order granted by a bankruptcy judge, the Wire Service Guild said Thursday.

The company asked employees to accept reduced benefits involving severance pay, dismissal notice and the right to refuse a transfer, among others, the union said in a statement.

UPI, which is struggling to stay in business, announced Wednesday that it was putting its radio network up for sale, hiring a private contractor to handle most of its sports coverage and making other organizational changes. The company said it would move its headquarters from Washington to northern Virginia by early December.

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The 84-year-old news service filed for bankruptcy in August for the second time in six years. About 80 workers were laid off last month.

Last month, a federal bankruptcy judge in New York allowed UPI to temporarily cancel several contract provisions. That order, which expires Nov. 29, lets the company stop paying severance to laid-off employees, use stringers in place of fired full-time workers and keep pay at 80% of previous levels.

The guild had agreed to keep pay at the 80% level, or about $568 a week for top-level employees, but objected to the other provisions.

UPI’s new proposal--if accepted by the union--would be effective until the employees’ current contract expires June 30, 1992, the guild said.

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