MediaNews labor negotiator Jim Janiga has opened contract talks with the Guild in San Jose by warning that employees may need to accept salary cuts as well as layoffs. That’s according to a posting on the Guild’s Web site.

Carl Hall, Chron reporter and Guild negotiator, countered by saying “there has got to be another alternative” to pay cuts or layoffs, and said he wants to talk about “creative restructuring” that would more dramatically rethink the business model.

According to Guild, Janiga responded: “That is why we are sitting here today.”

The Guild’s contract at the Merc expired last month. The two sides are scheduled to meet again Dec. 3.

Representing the Guild were the lead negotiator, Luther Jackson, as well as Sylvia Ulloa (newsroom), Bill Russell (advertising), Rick Tulsky (newsroom), Hall and Suzanne Arnaud.

In addition to Janiga, the Mercury News was represented by Andy Huntington and Marshall Anstandig.