Your new Guild steward

We'd like to announce that graphic artist Tom Gapen has stepped forward to help his coworkers and bargaining unit at the Los Angeles Daily News, by serving as a Guild steward.

As a steward, Gapen will be able to provide information to other members, and act as a Guild representative in the newsroom.

We invite everyone to thank Tom for coming forward. Or better yet, join him! Stewards play an important role in protecting and promoting the newsroom and the interests of our members. The more active members in the newsroom, the better!

If you have any questions about becoming a steward, please contact Vicki DiPaolo at 562-259-9430, or by email at scmg9400@gmail.com

Bankruptcy update

A federal judge has approved a bankruptcy reorganization plan presented by Denver-based Affiliated Media, Inc., clearing the way for the newspaper owner to emerge from chapter 11 protection within the next two weeks.

The Hon. Kevin J. Carey of U.S. Bankruptcy Court for the District of Delaware confirmed the plan at a hearing Thursday. The plan reduces the firm's debt by about 81 percent, from approximately $930 million to approximately $165 million.

Affiliated Media is the nation's second-largest newspaper publisher by circulation and owner of 54 daily newspapers, including the Los Angeles Daily News and the Long Beach Press-Telegram. Formerly known as MediaNews Group, the firm changed it's name last year to Affiliated Media, Inc., according to lawyers from Affiliated.

The reorganization, which will retain the MediaNews Group leadership at the helm of Affiliated, was approved prior to the filing by more than 90 percent of the firm's debtors.

Dean Singleton told the Salt Lake Tribune on Thursday that the lenders, mainly a group of banks led by Bank of America, would play no role in managing Affiliated or its properties.

Under the approved reorganization plan, Affiliated's debtors will own about 88 percent firm, with the former-MediaNews Group leadership retaining the rest. Stipulations in the plan allow the MediaNews Group leadership, including Singleton, to eventually own up to 20 percent of the firm.

The newly created seven-member Board of Directors for Affiliated includes Singleton, Utah billionaire Jon Huntsman Sr., Jody Lodovic, president of MediaNews, and Howell Begle Jr., the firm's general counsel. Under the bankruptcy plan these four Class A seats were selected by the former MediaNews leadership.

Class B directors named to the board by the lenders include Joseph Euteneurer, chief financial officer of Qwest Communications International, and Michael Sileck, former chief operating officer of World Wrestling Entertainment. And additional seat on the board remains to be named by the lenders.

Singleton will get a base salary of $634,000 in addition to a $360,000 salary at Denver Post Corp., court papers show. He will receive 6 percent of the reorganized company’s stock, out of about 11 percent reserved for management, and warrants to buy 8 percent more. He is eligible for a performance bonus of as much as $500,000 a year.

Lodovic’s base salary will be about $1 million plus 3 percent of the reorganized company’s stock. He will be eligible for a yearly bonus of up to $500,000, according to court documents. He already has received $500,000 for achieving goals in the restructuring process and stands to receive $250,000 more as part of a deal to win confirmation by March 31 and execute the turnaround plan by April 14.

Top executives not including Singleton or Lodovic stand to receive bonuses totaling $1.6 million and will receive up to 2 percent of the reserved Affiliated stock.

According to lawyers for the Guild, the reorganization should have no impact on the National Labor Relations Board settlement over the illegal transfer of employees from the Press Telegram to the Daily Breeze.

Bankruptcy leads to ownership change

MediaNews CEO Dean Singleton announced today that the company has entered into a debt restructuring agreement as part of Chapter 11 proceedings.

Affiliated Media Inc., the holding company for MediaNews, will have their debt load reduced from $930 million to $165 million. According to the Wall Street Journal, the company's value has been estimated at $200 million.

As part of the agreement, majority ownership of the company has been given to Bank of America and other debtholders. Singleton and MediaNews President Joseph Lodovic now control 20 percent of the company stock. The pair maintain control of all class A shares however, enabling Singleton and Lodovic to elect a majority of the board of directors.

No restructuring of individual properties or newsrooms are planned, according to Singleton, who characterized the move as a blessing for the cash-strapped empire, and perhaps an opportunity to expand further.

“Current shareholders will be losing the value of their holdings. But we believe that adopting this plan will give us a far better platform from which to develop, grow and participate in the consolidation and re-invention of the newspaper industry.”

Debunking the 'bias'

Romanesko today has a link to an article from the American Spectator. It makes a lot of bold claims about newspapers and reporters. Few of them are true.

Reviving the tired argument that newspapers have a "liberal bias," American Spectator senior editor Tom Bethell tries to put a new spin on the idea, citing union membership for the supposed leftist slant of U.S. newspapers. He doesn't try to demonstrate that there's a bias however. You'll just have to take his word for it.

From there, Bethell embarks on a long wandering indictment of labor unions, specifically those in the newspaper industry. But none of his criticisms have anything to do with The Newspaper Guild, Communications Workers of America, or any organized news unit. Instead, Bethell drags out shopworn cliches like the auto workers and the airline industry as convenient stand-ins, warning that newspapers may be doomed just because their employees have the ability to negotiate collectively.

Adding insult to injury, Bethell suggests that Guild units "are disposed to keep on doing their thing out of habit even if it threatens to put their own company out of business." He ignores the glut of stories documenting concessions and back-breaking sacrifice accepted by our members, including this unit.

Here's a very incomplete list of other Guild units that have agreed to concessions, found after just two minutes with Google.


Minnesota Guild approves concessions for bankrupt Star-Tribune

Chronicle workers vote 10 to 1 for concessions

Yakima Herald-Republic Concessions Agreement

Paper handlers union is fourth to approve concessions at Globe

To be fair, the Spectator hit piece acknowledges the holes in its argument - right before it glosses them over. Here's one such caveat:

To be sure, major newspapers are not closed shops, and a reporter hired by the Post has the option of joining the Guild or not. The Guild is moderate, as unions go.

Which sounds nice, until you realize that he's already called us self-righteous, irrational bullies. Nevermind the long list or documented cases of intimidation and illegal firings that face our members. But again, facts don't seem that important here.

Regardless, everyone is entitled to their opinion. We aren't in the business of arguing with people and groups that sacrifice reality for ideology. Disagreement is natural, even healthy, but differences of opinion should be rooted in facts, not lies.

The real question is why Romanesko is linking to an old the article in the first place. It's been out for over a month now. What purpose is served by enabling those who attempt to distort the truth, and do it as a weapon against the industry that Romanesko ostensibly serves?

Like the article, it makes no sense.

Pay walls coming

They said they were going to do it, and now it's official.

MediaNews Chairman Dean Singleton announced yesterday that the company would begin implementing a "pay wall" at two MediaNews Web sites.

Initially, only the Chico Enterprise-Record and the York Daily Record will see portion of online content restricted to paying customers, but according to Editor & Publisher, the plan may spread to other properties if successful. The Chico Enterprise-Record is located in Chico, Ca., and has a circulation of 27,000. The York Daily Record is in York, Pennsylvania and has a circulation of 55,000. MediaNews says the sites were chosen because of the size of their respective markets.

"We wanted to get sites that were not metro sites for the same reason that you don't open on Broadway," said Howard Saltz, vice president for content development. "But not a site that has Web traffic so small that the change would not affect anything."

Saltz said more sites, including MediaNews Group's larger papers such as The Denver Post and San Jose Mercury News, would likely add a pay wall approach if the York and Chico efforts prove successful: "We are going to be rolling out for the next two years."

Despite the near-inevitable public mutiny awaiting the decision, MediaNews' plan cuts to the heart of the online conundrum. In an environment where advertising is so grossly undervalued, how does a newspaper get paid for the content it produces? Their solution isn't what matters, what MediaNews is trying is an assertion that real journalism isn't cheap, and it isn't easy to produce. Even after being slashed beyond comprehension by layoffs and cutbacks, most daily newspapers still have no peer when it comes to the scope and quality of the news they produce each day. The question is whether or not anyone cares...and perhaps more importantly, will anyone pay for it.

What do you think?

Free Speech Assembly, October 24

It's short notice, but we've just received information on an upcoming journalism conference, hosted by the California nonprofit First Amendment Coalition.

The Free Speech Assembly will discuss "journalism, technology and public policy - explained and debated from the standpoint of freedom of speech and freedom of information."

Saturday, October 24 is the date. The place is Southwestern Law School's Biederman Entertainment and Media Law Institute in Los Angeles. The event is FAC's annual Free Speech and Open Government Assembly, jointly sponsored by the Coalition, the Biederman Institute and the McCormick Foundation.

For our colleagues in the ethnic media, some sessions will be conducted in Spanish and Vietnamese, as well as English.

The program includes panel discussions on topics ranging from journalists' use of social media for reporting, to new online tools to track the influence of money on legislation, to journalism training sessions on how to get sophisticated, insider news stories (and avoid being "spun" by government officials on one hand, or union officials on the other) about: local police and the criminal justice system; public school financing and the ranking of schools and teachers; salaries and pensions of government employees; and much more.

Attendees will have a chance to listen to featured speakers Alexandra Berzon and Alex S. Jones. Berzon was awarded the 2009 Pulitzer Prize as a reporter at the Las Vegas Sun, and currently covers Las Vegas for the Wall Street Journal. Jones, Director of Harvard University's Shorenstein Center on the Press, Politics and Public Policy, is a fellow Pulitzer winner and former host of NPR's On The Media, and PBS’s Media Matters.

Discussion panelists include: Dan Gillmor, Director, Knight Center for Digital Media Entrepreneurship; Geneva Overholser, Director of the USC Annenberg School of Journalism; Claudia Nunez, La Opinion; Evan Hansen, Editor-in-Chief, Wired.com; Neil Budde, President, DailyMe; Ricardo Sandoval, Sacramento Bee; Mary Perry, EdSource; Kathryn Baron, Fellow, UC Berkeley; and LA Times reporters Mitchell Landsberg and Matt Lait.

Best of all, attendance is free. But space is EXTREMELY limited. So if you're interested in attending, please register now.

You can register to attend at the firstamendmentcoalition.org Web site.

'Accidental' owners

As newspaper fortunes decline, the banks that financed the ambition of chains like MediaNews will increasingly find themselves the new owners of media properties, said MediaNews CEO Dean Singleton in an interview with The Salt Lake Tribune.

"Whether by supervision of the courts or by negotiation to convert some debt to equity, America's banks will own a large position in the newspaper sector going forward. Get used to it."

In a surprisingly candid moment, Singleton also suggested that the eventual denouement of corporate newspaper empires might be the best thing that could happen to the industry.

"Is this all bad? Probably not," Singleton said, predicting the result could be that newspapers are eventually owned once again by people wanting to cover news and shape opinion through editorial pages instead of being publicly owned corporations forced to meet Wall Street's profit expectations.