FP Newspapers Income Fund

FP Newspapers Income Fund

October 21, 2008 19:51 ET

Advisory-FP Newspapers Income Fund Announces Temporary Suspension of Distributions

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2008) - FP Newspapers Income Fund (TSX:FP.UN), publisher of the Winnipeg Free Press, the Brandon Sun and the Canstar Community Newspapers, today announced a suspension of distributions pending the resolution of the work stoppage by unionized employees and newspaper carriers at the Winnipeg Free Press and Canstar Community Newspapers.

The Winnipeg Free Press and Canstar Community Newspapers have been in contract negotiations with the Communications, Energy and Paperworkers Union of Canada (CEP local 191), which represents editorial, advertising, circulation, mailroom and creative services staff and through two additional separate agreements represents Winnipeg Free Press newspaper carriers, and the pressroom and technical services staff. The contracts expired on September 30, 2008. The work stoppage started on Monday October 13 and to date, 8 publications of the Winnipeg Free Press and 1 publication of the weekly Canstar Community News Limited newspapers have been cancelled. Management and the union are negotiating in efforts to finalize new collective agreements.

The previously announced distribution to unitholders for the month of September will be paid as scheduled, on October 30, 2008. Management will monitor the impact of the labour action on operating results, and will keep unitholders informed as to the future distributions by the Fund. Management's objective is to reach a fair settlement that reflects the long-term requirements of a competitive daily newspaper.

Collective agreements covering unionized employees at the Brandon Sun expire on December 31, 2008.

FP Canadian Newspapers Limited Partnership owns the Winnipeg Free Press, the Brandon Sun, and their related businesses, as well as Canstar Community News Limited, the publisher of seven community and special interest newspapers in the Winnipeg region. The Winnipeg Free Press newspaper publishes seven days a week, serving Winnipeg and Manitoba with an average seven-day circulation of approximately of 124,000 copies. The Brandon Sun also publishes seven days a week, serving the region with an average circulation of approximately 14,000 copies. Canstar Community News publishes weekly with an average circulation of approximately 206,000 copies. Based in Winnipeg, the businesses employ approximately 630 people in Winnipeg, Brandon and Thunder Bay. Further information can be found at www.fpnewspapers.com, and in the disclosure documents filed by FP Newspapers Income Fund with the securities regulatory authorities available at www.sedar.com.

Contact Information

  • FP Newspapers Income Fund
    Dan Koshowski
    Vice President Finance & Administration
    (204) 697-7425
    (204) 632-0281 (FAX)
    Website: www.fpnewspapers.com