In comments, an anonymous reader explains this is about the Bee's plan to outsource home delivery to an independent company in an attempt to cut delivery costs.
The people getting squeezed the most, of course, are the carriers. A reader says the carriers are being exploited:
The Modesto Bee carriers are being exploited. None of them want to be working under terrible conditions seven days a week... they have to. The Distributors know this and are trying to scare carriers into accepting a penny or two less so they can keep it. The only way for them to do so legally is to "fire" them all and re-contract them.
The carrier work force are the real back bone of the newspaper and they are the ones treated with the least respect.
As of yet, there have been no reports on this development from the Modesto Bee.