Tuesday, December 2, 2008

How it's done

One of our loyal readers passed along an interesting piece of news from the Palm Beach Post today. According to blogger Bob Norman, management at the paper is freezing all management salaries, and giving regular employees a 2% raise.

"It is important for you to know that executives at PBNI will not receive pay increases during 2009," Franklin wrote. "This decision is reflective of the need to reduce expenses and demonstrate leadership as we confront our economic challenges together."

The cynics might argue that this is mostly a symbolic gesture, and they're probably right. But at a time when industry execs repeat the same baleful cries of falling revenues while hosting million-dollar parties and enjoy a mandatory 5% pay increase on a six-figure salary, even the little gestures can mean a lot.

And speaking of the DNC soiree, turns out that was notable for more than just fiscal irresponsibility - it was the inaugural debut of a partnership deal between MediaNews and the Politico Network. That partnership model has taken root, and the content-sharing company has just announced that their client list now includes almost 70 newspapers.

The growth spurt comes hot on the heels of recent complaints from newspapers about the Associated Press, whose new rate structure places an additional burden on businesses facing plummeting revenues and circulation.

Some of our members have suggested that the honeymoon deal, launched by MediaNews properties like the Denver Post (owned by Associated Press chairman Dean Singleton) is another example of big business eating its young. We disagree. Relevant, quality content is always a good idea.

Of course, if MediaNews and other papers hadn't slashed staff, thus forcing editors to rely on AP content, and giving the AP incentive to raise rates in the first place...


Anonymous said...

The best part about that is ..

" I am writing you today to inform you of our compensation plans for 2009. We will be able to provide a company pool for increases of 2 percent for next year for only those employees who earn less than $65,000 "

If they did that with us, thats % 98 of our staff paid under $65,000.

I hope my invite to Rich's Christmas party is in the mail.

Anonymous said...

He buys papers and loses readers, now he runs the AP and loses papers.

Is there anything this guy can't screw up?

Anonymous said...


Anonymous said...

What is happening with the Board Charges???

It's time to make things move forward and bring out the big guns.

Where is Berni Lunzer when we need him?

Len Cutler said...

The charges are still in the works, but you've raised a good point. I'll pass along your concerns and see if there's anything new to report.