Tuesday, September 29, 2009
Media / News Bites "There is, as of today, only one bidder" — Halbreich
Posted by Michael Miner on Tue, Sep 29, 2009 at 7:38 PM
In Tuesday's memo to the troops, interim Sun-Times Media Group CEO Jeremy Halbreich asserted that despite reports that somebody new is talking about entering next week's bankruptcy court auction, "there is, as of today, only one bidder for the Company's assets." And that's financier James Tyree's investment group, whose leader "has repeatedly expressed his enthusiasm for the papers and Web sites going forward. These are the kind of owners that will be very good for our print and online publications and for our employees."
Thomas Thibeault, executive director of the Chicago Newspaper Guild, all of whose units have roundly rejected the terms Tyree has set, says that he began talking to the head of a second possible investment group about two weeks ago. “They reached out to the union first,” Thibeault told Crain's Chicago Business, but he acknowledges that Tyree had also approached the guild early on for off-the-record talks. "We expressed the same concerns I expressed to this [second] gentleman, and you kind of know what happened there," Thibeault told me Tuesday.
Thiibeault doesn't want his union gutted, and guild leaders believe that's what Tyree is demanding — that his terms would see the guild surrendering all its jurisdictional authority over the jobs of its members, who among other things would surrender weeks of severance and face another wave of layoffs anyway.
Thibeault said the new tire-kicker is a figure of some consequence around Chicago, certainly someone to take seriously. But "I didn’t really read him that well. What's his game plan I don’t know."
Halbreich said in his latest memo that if another bidder does come in, "there's no guarantee [he won't] formally reject the union contracts altogether, or significantly reduce jobs. This is not the plan of the Tyree group." He pointed out that four crafts unions have voted for Tyree's deal — the Sun-Times's paperhandlers, pressmen, teamsters, and machinists. And he noted that Tuesday was "the target date ... for all of our collective bargaining units to agree to concessions requested by the Buyer. The date's purpose was to create an orderly, smooth process between now and the aunction" on October 7. "The long-term goal of this process remains to ensure a soft landing for all of our print and online publications and to secure jobs for our employees."
The target date, which Halbreich construed as a deadline until the bankruptcy judge said it wasn't, hasn't been met. But although Halbreich asserted "the situation facing the Company grows more dire" he didn't claim that missing the target was catastrophic. "The bottom line," he concluded: "This bidder has presented a wonderful opportunity and lifeline for our publications and jobs. There remains hope."
Here's a pdf of the complete memo.
Showing 1-40 of 40
So today was the big deadline and all they did was send this stinkin' memo? Why didn't James Tyree walk away like everyone was told he would? I was a little skeptical when Halbreich first spoke to the newsroom, but now I'm a lot skeptical. I hope they know what they're doing.
Woe be to thee who has ignored the prophesies of Jeremy,
For thee will be blighted.
Make light of the passing of the day,
But fear the night!
As darkness falls upon the land your holies will be smitten,
Yea the dark form destroyers will rise from the earth
A pestilence upon the guilds
The Liquidators!
You were warned.
The Liquidators!
Razzing your temples of the word
The Liquidators!
Smiting your visions
The Liquidators!
Eradicating the temples of your toil to nothingness
A mere puddle of viscous muck will be rendered
Where once stood your place of joyful labor
The mastheads forever driven to earthen dust
The Liquidators will come
Alas you must head the prophet Jeremy
Honor the great and benevolent Tyree
Or woe shall be unto thee
They alone can deliver you from this passing.
Did you perhaps mean "Thibeault told me Tuesday" and "Thibeault doesn't want his union gutted" in grafs 2 & 3?
Sounds like it's time for the editorial union boss to allow the editorial employees to take another vote, rather than continue to cloud the situation and threaten their jobs all the more. Why are you not calling for another vote, today? Why, when presumably employees are telling you that they want another vote, are you not allowing it? It seems like Thibeault is trying to save his job with the union organization nationally, at the risk of 600 union jobs and 1,200 non-union jobs in Chicago. This at a time when journalists are losing jobs at the highest rate of professions in the country. Let the union employees vote on whether to allow Mr. Tyree to try to save this great company that's survived so much in the past.
Thibault doesn't have a job with the union nationally. He is an employee of the Chicago Newspaper Guild. If STMG liquidates, he loses his job, too. He's not a "boss," and it's not up to him to call a meeting for a re-vote. It's up to the unit chairmen at each Guild paper. At the Sun-Times itself, there are co-chairs, one a reporter, one a copy editor. They are in the office every day, doing their jobs and also listening to other members of the unit.
There are still some things that have to play out before another meeting is called, if it is called at all. Guild members aren't exactly clamoring for a re-vote without some adjustments to the terms.
STfan-
Not sure where you're getting your information:
The membership or the unit's elected unit chair would/could call for a vote anytime. Thibeault is no-ones 'boss' he works for the membership and does their bidding. And, actually; He will loose his job if the whole thing goes to liquidation since there will be no more dues and no more Chicago Newspaper Guild. It would be in his own best (financial) interests to get the respective units to approve Halbreich's (insane) demands.
These are the facts.
You are right about the rate of job loss though...
Thanks for the opportunity to share,
Oh, and thanks for being a fan.
Frank Sennett was correct and the change has been made.
Off subject, but pertinent to local media. Apparently the New York Times will be launching a Chicago edition. Should beat the hell out of the local-local-locals, at least for those readers with any interest whatsoever in the world.
.
http://mediadecoder.blogs.nytimes.com/2009…
It's like one big game of chicken. Who's gonna move first and who's gonna get run over by the train.
Pelham's comment re/NYT Chicago edition is pertinent. The NYT will do anything in their power to find another revenue stream given the deterioration of their flagship and - like everybody else - they are clueless aboput charging or not to charge for web content. But the overridding fact is that for a metro area its size (roughly 4-5M people) Chicago has just as many media outlets as the NYC metro area that has a population in the range that quadruples Chicago. And the NYC metro media is hurting as well. Simply put: the Chicago "pie" re/media is not big enough for all these outlets, whether TV, print, web etc.
The Guild members keep complaining about how the company has been mismanaged and how they are being mistreated because concessions are being asked of them. News update - Conrad Black is old news. Absolutely nothing is being accomplished with all of the bantering back and forth about the past.
Two of the main complaints are that the Guild members will loose seniority and severance. Jim Tyree knows that in order to put STMG back on it's feet, he will need to keep the best of the best employees because they are the ones that will be able to accomplish his goals. Yes, the loss of seniority would mean that you would be judged based on your own merit and worth rather than how many years you have been with the company. More than likely, this is the primary reason for the concern regarding the seniority concession. If there are an additional 60 - 65 additional layoffs, there is no way of knowing if they will all be Guild members. They could be union or non-union. Fighting for severance pay that you will not receive anyway if STMG liquidates, essentially becomes a nonissue. It's better to receive two months rather than nothing at all.
Perhaps it's time to put the shoe on the other foot. The problem is that STMG is buring through cash faster than a football fan can drink beer. In a proposal to Mr. Tyree, exactly what plans have the Guild members prepared and what changes would they make so that this company will become profitable again? Based on that plan, what concessions would you be willing to make? By all means, please be very specific when explaining the details of your plan. Remember, this plan would need to be a company wide plan not just one that involves the editorial departments.
If you come to the table empty handed, you have no right to complain about the consequences of the decisions made by others.
Insight doesn't have much insight. The Guild has been having talks with Halbreich and the STMG management team for a while now. Proposals have been made. Whether or not actual negotiations are taking place remains to be seen by the rank and file because they are not invited to these meetings. All signs point to a negotiation -- something Halbreich has repeatedly said would not happen. Maybe both sides are letting down their walls of stubbornness and are hashing out something workable. If so, hallelujah! That's how you foster an atmosphere of trust and mutual respect, and what leads to a happy, productive workforce.
I beg to differ. Conrad Black is not old news. Presumably, Lord Black has some $$$ stashed away for a rainy day, probably in some offshore account. Why isn't anything being done to liquidate his assets and find his bank accounts? Jail isn't enough.
Most of these comments? Ridiculous.
The people who post messages urging the unions to adopt the concessions -- when we voted no, we were doing you a favor. Big babies don't belong in this profession.
My no vote -- past and perhaps future -- is dedicated, once again, to you.
I'll remember that when we're both looking for work in two weeks. Thank you so much for doing me such a big favor.
I agree, something should be done to liquidate Black's assets. Most likely, that will never happen and there is nothing that the everyday employees can do about it. We could spend all day talking about what we would like to see happen to him and I'm sure that consensus would be unanimous. We have to move beyond that part of our legacy and hope that we can come out of this mess with as many jobs intact as possible. It's up to us to make the past the past just as much as it's up to us to make the future our future.
For too many years we have watched our fellow employees being walked out the door. I don't think that there is anyone that doesn't get that sinking feeling every time there is another layoff. We wonder how those that are gone are going to make it. None of us want to see another person make that final trip out the door. Some of those people poured their hearts and souls into this company for many years.
We don't want to see employees that have worked here for years to loose their severance. Believe me, we saw the look on the faces of the advertising employees when they found out that they were not getting anything at all and have to file with the court. We're not blind to the fact that the advertising staff was retained just long enough for the bankruptcy to go through. If we liquidate, there will basically be no severance. Even after you go through the court, you will be lucky if you get a small fraction of what you are currently entitled to.
I sincerely hope that the dispute with the union can be resolved. Jim Tyree purchasing STMG may not be everyone's preference, however, the alternative is much worse. All of us are in this situation together. At the end of the day, union vs. non-union doesn't make any difference if we're all unemployed.
The only logical, and I repeat, logical reason that Tyree would ask for the seniority concession is because it is going to take the best of the best employees to keep this company on it's feet. We are in dire straits. Longevity does not necessarily equate to quality. However, if he does think that bringing in novices for lower pay to replace experienced journalists is the answer to our problems then he obviously does not understand this business. Any company is only as good as it's employees.
Many of the blogs are like listening to a bickering husband and wife embroiled in a bitter divorce. Name calling and hateful comments do not accomplish anything. To those people, I ask again, what is your alternative plan? What plan are you bringing to the table? What I'm looking are others like Fed up that have useful information to post.
To those that are frustrated with management think of this when you get so angry that you can't see straight: If we make it through this, there will be many changes and don't think for one minute that those changes will not effect upper management. What do you think Tyree is going to do when he realizes that we have more VP's than we have departments?
No sure answers,
Is bargaining going on? http://tiny.cc/3EsjZ
Seems: maybe.
Will the company run out of money shortly: http://tiny.cc/oqofl
Maybe, maybe not.
Right now the best thing is to wait and see how the auction goes:
Will another bidder show up on Monday?
Either way we'll know by Wednesday who owns what.
I'm good until then.
Then we all need to find a way to move forward.
The editorial guilds are playing out this situation correctly. They called Mr. Tyree on his bluff of walking away if he did not receive his list of concessions by September 29. Well done. Though he said he would not negotiate, Mr. Tyree will probably make an 11th hour compromise with the unions if he is really serious about getting into the newspaper biz. The union will likely give into most of the new work rules and pay cuts as long as they receive some type of enhanced severance from what is currently proposed by Tyree & friends. Good job. My severance plan ended with the declared bankruptcy.
My greatest confusion about the potential sale is exemplified in the latest memo from Mr. Halbreich. He claims,
“There’s no guarantee another bidder won’t come in and formally reject the union
contracts altogether, or significantly reduce jobs. This is not the plan of the Tyree
group.”
Well, thank you for another vague statement of emptiness, Jeremy. But, really, what is the plan of the Tyree Group? You seem to promise that Tyree is not going to significantly reduce jobs in our already bare bones company. Are you just saying this to pacify those that are still pouring their hearts and souls into this business on a daily basis or, is this indeed the truth? If it is the truth, then why not reveal the Tyree plan to give some peace of mind to your loyal employees? Or is your statement just another “posturing” non-truth and the rumored planned staff cuts (up to 1/3) are the real fact?
At this point, I wish that I had representation to protect me.
One more union has rejected the concessions asked of them. The remaining members of the International Typographical Union have sent management a letter, saying they decline to vote on conditions that would eliminate their lifetime job guarantees.
Lifetime jobs? What century is this?
The ITU guarantee was negotiated 30-some years ago in exchange for some very large concessions. They've gotten very little ever since, but in their eyes, the guarantee remains non-negotiable. All those people are in their 60s now, been with the company forever, and have limited options. If I were them, I wouldn't even consider giving away that guarantee, either.
Again, EVERYONE has given large concessions. NO ONE is guaranteed a job for life.
Well, they have a contracted guarantee. You expect them just to give it away? Not bloody likely.
INSIGHT: HERE ARE A FEW SUGGESTIONS TO FOSTER PROFIT WITHOUT MAKING CUTS:
*First, do not give the product away. Putting entire news stories on the web and allowing free access is counterintuitive. I know, “no one is doing that” ergo we can’t either. BUT WE CAN. Give ticklers and allow access to classified ads on the web, but charge if they want the entire story. Think up creative ways of attracting web customers like a free ad every 6 months and encourage interaction between staff and the public.
*Cut executive salaries. It’s ridiculous to pay top executives nearly $1 million PLUS bonuses per year. They don’t do it in Europe and they need to stop that practice here.
*Use existing presses. Presses should be utilized and not allowed to lie fallow. Advertise for projects outside the company to make more money.
*Give individual papers autonomy. Most neighborhood papers understand those they serve.
*Marketing: A little marketing goes a long way. First, find out what readers want and then give them what they want (and this will differ considerably throughout the readership areas).
*Cut the cost of classified ads. That’s right – make it cheaper and make it much easier for readers to place ads. It's a heinous process right now. Give discounts for those who want to advertise only one day. Don’t force someone to advertise 7 days.
When you voted 'no,' you were doing me a favor? What an embarrassingly out of touch statement.
Is your 'no' vote going to pay for the dental work I need done? Is your 'no' vote going to help me take care of this car repair I've been putting off? Is your 'no' vote going to help pay the mortgage? What about some of my colleagues who have kids? Is your 'no' vote going to help them have a Merry Christmas this year?
You're not doing anyone a favor. You're nobody's hero, believe me.
Lighten up. I have kids too and I'm a single parent. Go ahead, take the crap they're feeding you. Every time we give in and allow big business to run all over us, we are making life that much harder for our children. Get some cojones and stand up for yourself, your co-workers and most importantly, your kids.
What kind of example are you setting by being a coward?
Right On Jane! The Angry Journalist sounds as though he would be afraid to cover a school board meeting. Everyone has needs-this company has cut to the bone and beyond for the benefit of the top executives for years. Now is not the time to give away conditions that took generations to get.
Duke's suggestions are terrific. You too, Jane and Pressman.
Why can't the Sun-Times be the FIRST to find a way to charge for online subscriptions? Give a lot of extras and charge very little at first.
AND SO TRUE! LET'S CUT EXECUTIVE WAGES. CYRUS WALKED OUT WITH $1.4 MILLION HIS LAST YEAR. WHAT KIND OF COOL DEAL IS JEREMY GETTING? NO MORE! THIS COUNTRY CANNOT SUPPORT EXECUTIVE PORK ANY LONGER. IT'S TIME FOR A CEO DIET!
Come on, Jeremy, do what's RIGHT for the company! Save the Sun-Times before it's TOO LATE! Cut your salary by 70%. You're the ONLY one who can afford it.
Conditions that took generations to get???
What the ability to be lazy and know you're protected by a union. Some of the most incompetent people at the Sun-Times have been there for 20+ years. They feel they are entitled to jobs because they've been there longer. Why should it be last in, first out? You should keep your job based on your contribution to the company, not the amount of time served
Suntimesguy: We were puting the paper together, when you were wetting in your pants. Respect your elders.
and that's the problem. You think because you've been there longer, you deserve your job. That's not how America works. If you're doing a good job, by all means you should be kept in employment. But if you've grown comfortable and lazy, out the door you should go. FWIW I've been with the paper 13 years
You know what? Up until now I have been rooting for the company to survive. I really do think the Sun-Times and many of its sister publications often produce a good product. The Sun-Times has broken a lot of major stories in the past year or so, such as the recent articles that disclosed the extent of pension abuse in local government. In my opinon, having two strong newspapers instead of one really does cause a much greater degree of scruntity and accountability of the institutions and issues in the area. Competition fuels better journalism. If the Tribune becomes a monopoly there will be a lot lost.
But over the past few weeks I have read so many delusional comments on this blog from people who really seem to not get that extreamly troubled companies do not have a huge amount of resources to start throwing around. So I think I have come the conclusion that as much as I believe the products make this city (and the region) better, letting them continue isn't worth prolonging the cocoon and bubble that many of the company's employees obviously live in. My God! Do you guys even pay attention to the world around you? It doesn't seem like many of you are even aware of the most basic things about your employer. One person here referred to it as "big business" when it is BANKRUPT and has been losing money for years. People think they are entitled to be farther in line to be laid-off simply because they have worked their longer, regardless of whether newer employees can do the job better. We see that one union has members who are outraged that they are not going to receive LIFETIME EMPLOYMENT GUARANTEES at a company that most people who analyze the industry thought wouldn't even largely be around next year. Have these people been completely ignoring the world around them? I wouldn't be surprised if on the same days that there were articles in their own paper about its very troubled future they were sitting in the office arguing with each other about which one of them was going to eventually get the best desk in 15 years and discussing how they'd love it if their kids spent their careers in that job. I am truly stunned by the fact that so many STMG employees have apparently been completely oblivious to the situation around them and seem to have been caught off-guard to the fact that they are going to have to make sacrifices. For Christ sake's, before the company declared bankrupcy it was trading on the Pink Sheets for around the year. You don't have to know a thing about finance to know that being traded on the Pink Sheets shows that your company is in a very bad state. You could tell that by the name. And, from my recollection, it routinely closed at less than 10 cents every day.
"Why can't the Sun-Times be the FIRST to find a way to charge for online subscriptions?"
It's simple. Because they have a stonger competitor. If the Sun-Times were to charge for local news, everybody would just read a similar news story on the Tribune's (or the Daily Harald's) website. And certainly the Sun-Times cannot charge for national or international news which, of course, is just wire service copy that can be found in dozens of places. And obviousy nobody is going to pay to read Richard Roeper, Neil Steinberg, or Mary Mitchell. I have always stated that newspapers need to charge for their online content. But the weakest competitor in a two-or-more paper market cannot do this while the dominent paper continues to give its content away. It would be commiting suicide. That's just a fact. I am not going to bother to comment on Duke's "suggestions" for making the paper profitable since it doesn't seem that he put much thought into them.
Which is it IAC, we are fighting to save 1,800 jobs, or we cut wages and layoff workers. If we are fighting to save jobs, then the 30 year old employment guarantee agreement is not an issue.
For an outsider, you really get worked up.
Bottom line, the business in general and the Sun-Times in particular (as the clock is ticking) need people of vision in charge. Unfortunately there are fewer than I can count on one hand at the Sun-Times. Some of upper management were once good at their jobs. Some of them are even -- negative commenters, don't strike me dead for saying it -- good people. But it's time for most of them to stop dragging the company down.
Jeremy is probably the only one with a clear, forward-thinking vision right now, but his approach on how to handle the union is all wrong. The best thing he could do if the deal is made is to let go of all of the current executives and managers and department heads in advertising AND editorial (except maybe the guy in charge of the website), and replace them with people who have concrete ideas on how to move the product into the 21st century in both quality and profitability.
Newspaper Guild's position..
.http://www.newsguild.org/index.php?ID=7962
So.....who and where is that second bidder? Clock's ticking.
Jane Doe, I am standing up for myself. You obviously just don't get it.
So, what happened to that second bidder?
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