Alexandra Olson of AP wrote about a strike by journalists who work for Gannett newspapers. A vibrant free press is essential to democracy. Talking heads reading from a script on television are not a good substitute for local journalism that holds power to account. The death of community and local newspapers narrows our sources of information and strengthens the handful of barons who own the networks.
NEW YORK (AP) — Journalists at two dozen local newspapers across the U.S. walked off the job Monday to demand an end to painful cost-cutting measures and a change of leadership at Gannett, the country’s biggest newspaper chain.
The strike involves hundreds of journalists at newspapers in eight states, including the Arizona Republic, the Austin American-Statesman, the Bergen Record, the Rochester Democrat & Chronicle, and the Palm Beach Post, according to the NewsGuild, which represents workers at more than 50 Gannett newsrooms. Gannett has said there would be no disruption to its news coverage during the strike, which will last for two days at two of the newspapers and one day for the rest.
The walkouts coincided with Gannett’s annual shareholder meeting, during which the company’s board was duly elected despite the NewsGuild-CWA union urging shareholders to withhold their votes from CEO and board chairman Mike Reed as an expression of no confidence in his leadership. Reed has overseen the company since its 2019 merger with GateHouse Media, a tumultuous period that has included layoffs and the shuttering of newsrooms. Gannett shares have dropped more than 60% since the deal closed.
Susan DeCarava, president of the The NewsGuild of New York, called the shareholder meeting “a slap in the face to the hundreds of Gannett journalists who are on strike today.”
“Gannett CEO Mike Reed didn’t have a word to say to the scores of journalists whose livelihoods he’s destroyed, nor to the communities who have lost their primary news source thanks to his mismanagement,” DeCarava said in a statement.
In legal filing, the NewsGuild said Gannett’s leadership has gutted newsrooms and cut back on coverage to service a massive debt load. Cost-cutting has also included forced furloughs and suspension of 401-K contributions….
Among the contract demands are a base annual salary of $60,000. The median pay for Gannett employee in 2022 was $51,035, according to the company’s proxy filing. Reed’s total annual compensation was valued at nearly $3.4 million, down from $7.7 million in 2021.
At the shareholder meeting, NewsGuild-CWA President Jon Schleuss said the union proposed lowering Gannett’s median CEO-to-employee ratio from 66:1 to 20:1. But Schleuss said the meeting lasted just eight minutes and Reed didn’t address any questions. In a series of tweets, Schleuss called the meeting a “complete joke…”
Gannett, which owns USA Today and more than 200 other daily U.S. newspapers with print editions, announced last August that it would lay off newsroom staff to lower costs as it struggles with declining revenue amid a downturn in ad sales and customer subscriptions.
The newspaper industry has struggled for years with such challenges, as advertising shifts from print to digital, and readers abandon local newspapers for online sources of information and entertainment. Major newspapers such as The New York Times, The Wall Street Journal and The Washington Post have gained substantial digital audiences for coverage of broad topics, but regional and local papers have struggled to replicate that success in narrower markets…
According to the NewsGuild, Gannett’s workforce has shrunk 47% in the last three years due to layoffs and attrition. At some newspapers, the union said the headcount has fallen by as much as 90%.
The Arizona Republic, for example, has gone from 140 newsroom employees in 2018 to 89 this year, the NewsGuild said. The Austin American-Statesman’s newsroom shrunk during that period from 110 employees in 2018 to 41 this year.
Elahe Izadi of the Washington Post wrote this about the strike:
Gannett merged with the GateHouse chain in 2019, a deal that executives promised would lead to dramatic cost savings while critics warned of job cuts and leaner newsrooms. While the resulting company included 261 daily newspapers and 302 weeklies, those numbers had shrunk by the end of last year to 217 dailies and 175 weeklies, after some papers were shuttered or sold.
Rochester Democrat and Chronicle education reporter Justin Murphy said Monday’s protest represents a “desperation and fear that not only is our workplace and our employer going astray, but the consequences for our communities will be truly devastating.”
Gannett last summer froze hundreds of positions and laid off 400 employees — some of whom were the last remaining reporters at their newspapers — after a dismal financial quarter. Gannett has also offered voluntary buyouts and in December laid off 6 percent of its roughly 3,400-person news staff.
A year before he joined the paper in 2012, Murphy said the Rochester Democrat and Chronicle had a newsroom with 86 union members — a count that excludes editors and other managers — but that the number is now down to 23.
“Those of us who are left are kind of local journalism sickos who just can’t stop doing this,” he said. “As we’ve had cutbacks and cutbacks and they’ve asked us to do more and more, we’ve done it because we think it’s important that the work get done, and that’s just how we’re wired. But it’s one thing to do that when you have 86 people going to 80 or 73, but to 23? It doesn’t make sense anymore.”
Sportswriter Rob Aitken grew up reading the newspaper where he now works, the Record in northern New Jersey. “It was the best thing in the world to see your name in this paper,” he recalled. “It meant you were something.”
But now he says some high school sports are rarely written about, as staffers are stretched too thin. “You want to try to be everywhere and cover every great story. It makes you wonder how many great stories are not being told,” he said. “When we can tell a story about a kid and give them enough attention that maybe they get a college scholarship — you wonder how many kids aren’t getting that opportunity now.”
After the cutbacks, Gannett ended the year with a quarterly profit of $32.77 million, and $1.27 billion in outstanding debt.
The walkout also follows the departure of several top Gannett executives in recent months, as well as editors at some of the chain’s largest newspapers.
In a May earnings call, Reed said “2023 is off to a great start,” noting that the cuts and other “cost management initiatives” had boosted Gannett’s net income to $10.3 million, compared with a loss of $3 million during the first quarter of 2022. Digital subscriptions also grew by about 15 percent from the same time frame the previous year, totaling around 2 million paid subscribers.
Reed has also said he’s open to selling more Gannett newspapers.
“We would entertain bids on any of our markets, any of our products, that are at or above fair-market value,” he said in February. “We’re hopeful that we’ll have an opportunity this year to do that. But it’s not anything that’s in our plans.”
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