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Press Herald for sale?

By JEFF INGLIS  |  August 24, 2006

A couple months after Knight Ridder announced it would sell itself off to the highest bidder, Blethen representatives at the Morning Sentinel and the Kennebec Journal introduced new proposals into ongoing contract-renewal talks with those papers’ respective unions. The proposals, which are still being disputed by the unions, would give the Blethens permission to take away tasks from union workers and assign them to contract or freelance workers. But the move that really upset union representatives was a provision that would let the company move those tasks back to full-time workers who would not have to be members of the union.

To union members, that means a person could be laid off, their job taken away and given to a contractor, and the company could later hire the contractor as a full-time staffer who would be outside the union. Over time — some estimate about 10 years; others worry it could be far less — the union would just wither away. It’s a move negotiators have called “union-bashing,” and company representatives have told the unions to expect the same provision to be demanded during next year’s contract-renewal negotiations with the union at the Portland Press Herald/Maine Sunday Telegram. (At all three papers, the unions represent not only reporters and lower-level staff editors, but also workers in layout, printing, advertising, circulation, and distribution.)

The move reversed the position the Blethen family had taken toward unions eight years ago, when buying the Maine papers from the Guy Gannett company: though they were not required to do so by any law or business rule, the Blethens agreed to honor pre-existing contracts with unions. Now, the lawyer for the Portland Newspaper Guild, John Richardson (yes, the one who also serves as Speaker of the Maine House), speculates that the anti-union shift is an effort “to make the papers as presentable as possible for a future sale.”

Stuck in the mud
Some industry analysts say the union-busting attempt is not necessarily an indicator of a pending sale. Rick Edmonds of the Poynter Institute says management simply doesn’t like unions, even though organized labor is weaker because both unions and companies are less financially able to endure long strikes, unions’ ultimate weapon.

Most media companies don’t like unions, agrees Lou Ureneck, a 20-year Press Herald veteran now chairing the Boston University journalism department. “Unions increase costs and reduce flexibility for management,” he says.

“Flexibility” is exactly the buzzword the Blethen Maine Newspapers negotiators are using. An assistant to Blethen Maine CEO Chuck Cochrane returned a call to his office, saying the company would not comment on labor negotiations, which the company feels are “best resolved at the bargaining table.” In response to calls seeking comment on other aspects of this story, the assistant explained Cochrane “does not give interviews” as a general practice.

But representatives of the Portland Newspaper Guild were happy to talk. “We don’t understand their need to take everything away from our contract,” says Darla Pickett, chapter chairman at the Morning Sentinel.

The unions have asked for the company’s justification, and have gotten the response that the company wants “flexibility.” The company says “they have no plan . . . but they just want it,” says Mike Sylvester, the union’s executive director.

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Comments
Press Herald for sale?
I've been reading the Portland newspapers for years, and the overall quality of the Portland newspapers under the Blethen family is not really any better than the quality under the Guy Gannett company. The fact is that the Portland newspapers are thin at best, relaying too much on wire copy at the expense of independent reporting.
By Tmark on 08/23/2006 at 1:41:08
Press Herald for sale?
The newspaper is for sale, if you look at the shift of news content to ad content under Blethen ownership. The Real Estate section? It's no longer handled by news reporters and editors. It's an advertising supplement, with "news content" bought by the realtors. Weddings? Funerals? If you want coverage, call your Classified Ad rep and prepare to write a check. That content also is for sale, no longer covered by reporters. While readers cry out for more Local News, the Press Herald ditched the Your Neighbors Local News Section for South Portland, Scarborough and Cape. The reason? Not enough ads. What about the readers? Some days it seems that the advertising circulars in my newspaper are thicker than the paper itself.
By sioux on 08/24/2006 at 10:19:32
Press Herald for sale?
Interesting story and generally on the money from my perspective. However, you have made some glaring errors. There are few that doubt the paper(s) have declined in quality since the sale to the Seattle TImes. Simply look at the number of inches on local news vs. wire stories, the cut back of a reporter for state house coverage from both papers, now they share one, when he works. Page count confirms this, and then there is the lack of content on key sections---take the Sunday paper for example. IS there a business section that makes any reference to Maine business folks? No. This is an example buy you can find many each day. This is why circulation is falling. Then there are comments made at inside meetings by the editor when she said that there are few options other than selling. Shocking so many present, people only assumed it was frustration. As for the unions. Forget it guys. The Seattle Times operates out of the 1960 model of "my way or the highway..." Do not look for enlightened management or collaborative solution solving, this is not the style of the Seattle Times company and those Board members are now living in Maine and running the Maine papers. But your assumptions and the editors comments are most likely right, a sale will most like occur despite the Blethen family not wanting to do so. Your article did not draw the line between what the Blethen family "wants" and what it ends up "having to do". Selling is something none the insiders want to do, and will avoid doing or even thinking about, but they will. You are right, the market will most likely force the trade of the Maine papers to McClatchy people. Your biggest error was even suggesting that any local paper company could gather either the talent or the financial ability to buy the Blethen papers. The Lewiston Sun Journal is incaple of such a purchase on so many fronts it boggles the mind. Chris Harte? Moving to Texas. Bangor Daily News, no way that this family newspaper would take on the debt, simple no way. Simply because someone owns some weeklies that do not make money (and they do not make money at all) you missed the only other option than McClatchy, Dean Singleton of Denver. His media company was hot on the heels of the Blethen family when bidding was hot during the sale. Blethen was bluffed and paid 10% more than Singleton, the notroious high bidder of the newspaper business. Singleton backed out at at around $190 million (your reported purchase price was too low, also). And yes, Mr. Singleton is ready to walk in and save the day. But for who? The answer is simple, most likey the Blethen Family and the financial life of the Seattle Times, but certainly NOT the unions or staff in Maine. Dean Singleton is known for walking in day one, ripping up the union contracts and reducing salaries (and yes the employees are WAY overpaid compared to other newspapers). So what will happen? Do not expect to get the answer ever from the Blethen management. And do not expect things to get better, life will be driven by what happens in Seattle since nothing good on the economic side of things will happen in Portland. Give it 18 months. Enjoy your days.
By boxcar on 08/25/2006 at 10:59:18
Press Herald for sale?
Bethan newspapers should just slam shut thier doors. All the drunken residents do up in Maine is complain and 'see' Liberal conspiracies when they read the newspapers. You think people are laughing now at Maine,Wait til there is no daily newspaper in Maine. lol! B. Washington, Boston,Massachusetts
By maine_sucks on 08/28/2006 at 3:59:45
Press Herald for sale?
Boxcar and the others - thanks very much for your comments! Sioux - you forgot to mention that obituaries are also now paid advertising, no longer considered local news. Boxcar's suggestion of Dean Singleton is an interesting one, and it may be the right one, or there may be others who come together in interesting arrangements, as we saw with the consortium of investors Brian Tierney collected in Philadelphia.
By Jeff Inglis on 08/31/2006 at 1:52:47
Press Herald for sale?
Now read this: Paid Ads on the Front of News Sections!!! On the heels of your well-informed article, newspaper management announced last week that a longstanding tradition is about to be broken separating the most important news from paid advertisement. Paid Ads will soon appear on Section Fronts! Imagine this, Jolly John sharing the front-page with a story on Global Warning. Staffers who attended the companywide meeting on the announcement said the Executive Editor, Jeannine Guttman, was in tears... There's good reason the rest of us should care about this. Advertisers get picky when they pay big bucks to promote their products. If they are going to shell out money for advertising, they may have conditions about the kinds of stories they want and DON'T want in the newspaper. This latest movement by the Blethens is just another example -- and the most glaring example -- of how the content of the Portland Press Herald is For Sale. Any bidders?
By sioux on 09/12/2006 at 7:47:33

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