No news is...good news?

News organizations are fond of defending free speech and the importance of keeping the public informed. MediaNews is no different - unless that news is about the company itself.

In a move reminiscent of the MNG decision to cease filing financial reports with federal regulators, the company has asked Standard & Poor's to withdraw all credit ratings for the company.

The request is presumably a reaction to news that the company's credit rating has been cut yet again, from CCC+ to CCC, a rating that indicates "high default risk" investments.

The upshot, if there is one, will be that the company might stave off further bad news that would presumably deepen the tarnish that has engulfed the company for the better part of a decade. But is no news really good news? Does it matter that S&P will no longer report on MNG's steady slide down the credit ratings ladder until the company is now hanging at nearly the bottom rung with its legs flailing over a bottomless chasm?

The more likely reality is that the further MNG retreats into solipsism and isolation, the more distorted and unclear the truth will become to those attempting to plan their way out of this mess. And that same enigmatic shroud will also hinder any other entity that might consider reaching down to MNG with a deal that would help them back up the ladder.

Perhaps it's painfully naive, but taking an honest account of the situation, warts and all, might be for the best. And honestly, right now Singleton and company can't afford to make it harder for anyone that wants to bring back the days when company news is a source of pride.

MediaNews rating drops...again

As if Dean Singleton does not have enough worries just finding enough advertising, now Standard & Poor's is on his back yet again.

MediaNews has taken another hit at the hands of the credit agency, sinking further into the morass of junk status. This time he's not alone--the Orange County Register had their rating downgraded too.

S&P cited steeply declining cash flow as a main reason for the decision. This can only mean that Singleton and his crew will be looking for ways to cut costs even further. Given that the Press-Telegram has a year moratorium on Guild layoffs and the Daily News has just gone through another round of cuts, there are only a few other pins on the SoCal LANG map for the company to look at.

MediaNews' Jim Janiga however offered some reassuring words recently, telling Daily News bargaining committee members that he could not "see us operating with fewer people."

Singleton had some thoughts to share recently on the situation at the Hearst-owned and Guild-represented San Francisco Chronicle, which reportedly lost more than $50 million last year. For some reason, he thinks it would be a "good idea" if the federal government waived anti-trust restriction and let all the Bay Area papers be owned by one company. Any guesses which company he would vote for?

U-T finds buyer

In other industry news, the San Diego Union-Tribune, on the selling block since July, has found a buyer in Beverly Hills-based private equity firm Platinum Equity. U-T watchers expect that the paper is likely to suffer serious cuts after the takeover and see many of its assets sold off, including a portfolio of more than $100 million of San Diego-area real estate. While details of the transaction were not revealed, U-T owner Copley reportedly sold the U-T for $20 million to $50 million, a fraction of its likely asset value.

3/16 bargaining update

This session provided some definite signs of progress, and even an acknowledgment from company rep Jim Janiga that cutting the newsroom isn't in the company's best interests.

The team continued their push to protect bargaining unit work, but offered a proposal that would provide for work currently performed by management would stay intact for six months, provided that Guild staffing levels aren't affected.

In response to industry conditions, the team also stated they would agree to a proposal that would tie wage freezes at the DN to the rest of MediaNews, which could temporarily impact the unit's two-percent raise for as long as MediaNews has a wage freeze in place.

The team told the Employer they would agree to raising the cell phone stipend to $10, and continued to push for a higher vacation cap, as well as an enhanced severance package for laid off employees.

The company will offer their response at the next session, tentatively scheduled for Thursday the 19th. If you have any questions or concerns, please contact Guild rep Vicki Di Paolo at 562.259.9430 or scmg9400@gmail.com

Briefly ...

NoCal Guild votes Thursday (March 12) on contract changes that may keep the SF Chronicle publishing – California Media Workers Guild

Sacramento Bee cuts 11% of its staff, Modesto Bee staff agrees to wage reductions. Agreements made to stave off job cuts – McClatchy Bee Bulletin

Round-up of negotiations and news in Seattle – pnw.org

Final days for the Seattle P-I? – The Stranger

Is I-News old news? STLtoday.com

Big Labor and Big Business meet today on Capitol Hill as the fight over the Employee Free Choice Act begins in earnest this week– politico.com Three testify before the Senate: "This is a fairness issue. The system of employee-employer relations is fundamentally lopsided. There’s a need to level the playing field, to redress a great imbalance. When a system is in such fundamental imbalance, it is our obligation on both sides of the aisle to remedy that." aflcionowblog.org

3/3 bargaining update

This session's update includes a lot of new information. We're aware of members' concerns over managers performing bargaining unit work, and Guild rep Vicki Di Paolo addressed those concerns, and a grievance was filed against the company over the practice.

Additionally, tentative agreements were reached on the following issues:

- Employees who work more than 20 hours a week are eligible for prorated benefits after one year.

- An increase in the night differential from $3.50 to $3.60.

- Non-employee Guild representatives have been allowed access to the Daily News offices.

Lastly, the company made a surprising proposal to the team.

In a departure from previous negotiations, the company also proposed wage reductions for Guild employees if non-Guild employees suffer that fate.

There's been no word on an official response yet, but obviously the proposal probably isn't welcome news for many employees.

The next bargaining session is March 16. If you have questions or comments, please contact Guild rep Vicki Di Paolo at 562.259.9430

Final Edition

A member asked us to share the following with everyone.

How is it relevant you ask? We all talk in the newsroom and are convinced that the paper won't be around.




Regina Combs at Poynter Online tells the story behind Final Edition, a somber look back at the loss of yet another civic institution.

Although no one needs to be reminded just what's at stake, and just how badly things can get, it just might be essential to be remember that a newspaper is more than simply a business.

"I'll tell you what. If you take out our paper, people will not be informed any more. And an uninformed society breeds a lot of social evils."

Feds subsidize COBRA coverage for recently laid off

According to the Department of Labor, the recently-signed economic stimulus package has provisions that should be of interest to many Americans.

Under the new rules, employees who are laid off between Sept. 1, 2008 and the end of 2009 will be eligible for subsidized medical coverage from the Consolidated Omnibus Budget Reconciliation Act (COBRA) program. March is first month of the subsidy program.

Individuals eligible for COBRA coverage who were involuntarily terminated by their employer on or after September 1, 2008 through December 31, 2009 who are eligible for COBRA and elect COBRA may be eligible to pay a reduced premium amount that is only 35% of the premium costs for your COBRA coverage.

Laid off employees who have not yet signed up for COBRA have a 60-day window to apply, starting from the date they receive notification of eligibility. Employees that have already waived their COBRA coverage may revoke their waiver before the end of the 60-day period.

More information is available at the Employee Benefits Security Administration's COBRA continuation page.