Newspaper Guild enters bidding for
a dozen Knight-Ridder newspapers
WASHINGTON, D.C. (PAI) —
Saying it seeks to get ahead of the
curve, not just react to a done deal, The
Newspaper Guild wants to get into the
newspaper business.
As a result, the 33,000-member
Communications Workers of America
sector is working with an investment
firm to bid for 12 newspapers of the
Knight-Ridder chain.
Together, they have set up the Val-
uePlus Media Corp., to try to engineer
the purchase. An employee stock own-
ership plan is down the line.
If the Guild succeeds, it would mark
an unusual development in the newspa-
per business and a change from labors
normal pattern of scrambling to bargain
with new owners of a business about
the impact of a sale on workers.
It would also give unions a gateway
into a media world now ruled by huge
conglomerates, many of them anti-
union. It was the domination factor that
prompted the Guild to lead last year’s
successful campaign against federal
rule changes making it easier for me-
dia concentration.
Most newspapers in the U.S. are
owned by media conglomerates. Ex-
amples are the 32-paper Knight-Ridder
chain, and the Chicago-based Tribune
Corp. Tribune owns its flagship
Chicago Tribune, WGN cable and
over-the-air television, part of the In-
ternet, the Los Angeles Times, the Bal-
timore Sun, Newsday of New York, the
per Guild-CWA, including the St. Paul
Pioneer Press, Duluth News Tribune,
Grand Forks Herald, the Philadelphia
Inquirer, the Philadelphia Daily News,
the San Jose Mercury News, the Akron
Beacon Journal, and the Monterey
County Herald.
The nonunion papers include the
Aberdeen American News, the Contra
Costa Times, the Fort Wayne News-
Sentinel and the Wilkes-Barre Times
Leader.
“From the start, our goal has been to
facilitate a worker-friendly buyout of
these newspapers that have a combined
employment of approximately 7,000
and a combined daily circulation of 1.3
million,” said TNG President Linda Fo-
ley. “While we have been focused on
the TNG-CWA unionized papers, our
team will consider the entire package
of 12 papers.
“We believe our team is a viable and
credible acquirer of any and all of the
newspapers McClatchy has indicated it
intends to sell and we look forward to
the opportunity to discuss our interest
with McClatchy. Our effort enjoys the
backing of the Yucaipa Companies of
Los Angeles, the largest ‘worker-
friendly’ fund in the nation, and the
professional counsel of Duff & Phelps
Securities, LLC of Chicago and Own-
ership Associates of Cambridge,
Mass.,” Foley added.
Hartford (Conn.) Courant and other pa-
pers.
Ruling families control other pub-
licly-owned papers, including the New
York Times, the Washington Post and
the Wall Street Journal. All three of
those newspapers are under union con-
tracts.
The Guild’s decision and search for
a partner actually started late last year,
when Knight-Ridder’s biggest share-
holders forced its owners to put it up
for sale. Those investment houses were
disappointed with a flat stock price and
with the fact that profits at the chain
were below the industry “norm” —
which is more than 20 percent.
Knight-Ridder announced March
13 that the Sacramento-based Mc-
Clatchy Newspapers would buy its 32
newspapers for what some analysts
called a “bargain basement price” of
$4.5 billion for the nation’s second-
largest newspaper chain.
But that sale came with a caveat:
McClatchy, in turn, plans to sell 12 of
Knight-Ridder’s largest papers — in-
cluding its two flagships, the Philadel-
phia Inquirer and the San Jose Mercury
News — where it says growth is not
fast enough or where they compete
with other papers. To avoid antitrust
problems, McClatchy will buy Knight-
Ridder’s Minneapolis Star-Tribune and
sell its own St. Paul Pioneer Press.
Included in the 12 newspapers are
eight papers organized by the Newspa-
Alliance for Retired Americans
charts ambitious 2006 agenda
The Oregon Alliance for Re-
tired Americans (ARA) held its
third annual convention March
25 at the Teamsters Hall in
Northeast Portland. More than 65
people were in attendance.
Oregon is one of 22
states that have chapters
of the AFL-CIO-char-
tered union retirees or-
ganization.
Ed Coyle, executive
director of the national
ARA in Washington,
D.C., reported on an
ambitious political
agenda the national
group has planned that
targets several House, Sen-
ate and governor’s races.
The goal is to elect officials
who support seniors on is-
sues such as Medicare, So-
cial Security, long-term health care
and affordable housing.
He said the group is looking at
Washington State and the re-election
campaign of labor-endorsed Maria
Cantwell to the U.S. Senate as one
of its targeted races.
Speaking about Medicare pre-
scription drug changes enacted by
the Bush Administration, Coyle said
before the end of the year roughly
3.8 million seniors will have to pay
100 percent of the cost of their pre-
scription drugs out of pocket, while
continuing to pay their monthly in-
surance premium.
“They call it the ‘doughnut hole,’
and not too many retirees are aware
of it,” he said.
Under the new plan, Medicare
Part D pays three-fourths of drug
costs from $251 to $2,250. Most
seniors have to pay 100 percent of
the costs between $2,250 and $5,100
— while continuing to pay their
monthly premium. Once an individ-
ual has paid the $3,600 in out-of-
pocket costs, Medicare Part D will
kick in again, picking up 95 percent
of the remaining costs for prescrip-
tion drugs for the remainder of the
year.
“It’s important that we elect a
senior-friendly Congress in 2006,”
Coyle emphasized.
Coyle later presented Nellie Fox
Edwards (pictured together above),
and Don Patch with special recogni-
tion awards for their work with ARA
and for helping seniors.
Oregon ARA President Verna
Porter also presented an award to
Congressman Earl Blumenauer for
his leadership efforts to improve the
lives of older Americans. Blume-
nauer could not attend because his
mother is ill.
Porter said the Oregon chapter is
actively working to ally with a broad
network of community-based groups
committed to senior issues and has
embarked on a campaign to recruit
“non-retirees” to the ARA.
“We’re an alliance for retirees,
not an alliance of retirees,” she said.
Porter said workers in their 50s
also are concerned about the future
of Social Security, pensions and
health care. “Many feel that things
will only be worse by the time they
retire.” She welcomed the “ideas and
energy” of non-retirees and soon-to-
be retirees and invited them to join
the Oregon chapter. A one-year
membership for an individual is only
$10.
For more information about the
organization or to join, call Porter at
503-284-8591.
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