Lenfest to Journalists: Newspapers Aren’t A Charity

Gerry Lenfest may be one of Philly’s foremost philanthropists, but he’s not going to treat the newspapers he owns like a charity.

That was the message Lenfest, owner of Philadelphia Media Network — which owns the Inquirer, Daily News and Philly.com — sent to employees this morning as negotiations continue between PMN and the Newspaper Guild race toward this weekend’s expiration of the contract between the two.

“I have given substantial donations over the years to charitable institutions,” Lenfest wrote in a memo emailed to all of the company’s employees. “PMN is not a charity but rather it is a business, and as such it must be self-sustainable.”

The Guild’s leadership shot back in a memo of its own:

“For us, this company has been a charity. We have lost our pension. We haven’t had a raise in six years. In fact, we have given back raises. We have paid more for health care because the company has not increased its contribution in 15 years,” they wrote, and added: “The company negotiators do not appreciate these sacrifices. They won’t even acknowledge them.”

PMN and the Newspaper Guild — which represents journalists, ad sales, and other support staffers — have been at an impasse over seniority and health care issues. The two sides met for 11 hours on Monday and are reportedly meeting again today. The Guild has called for a noon Thursday rally of members outside PMN’s Market Street offices.

Guild members have often referred — sneeringly, if obliquely — to Lenfest’s philanthropic pursuits, especially his 2010 donation of up to $5.8 million to help preserve the SS United States, the former ocean liner that’s been sitting in dock, unused, for years in South Philly.

That came years, however, before Lenfest somewhat accidentally became the sole owner of PMN. Last year, he joined the late Lewis Katz in bidding on the newspaper group — winning even though the pair apparently expected to be outbid by rival George Norcross.

Days after they won the bid, Lewis Katz was killed in a plane crash. Katz’s heirs sold their interest in the papers to Lenfest, leaving him unexpectedly — in his 80s — alone at the helm of the company.

His Tuesday memo made no reference to specific bargaining positions of either the Guild or the company, instead suggesting that the Guild will have to make sacrifices to keep the organization economically viable.

“It is critical to the long-term future of the Company to be financially self-sustaining,” Lenfest wrote. “Our position in the collective bargaining negotiations with our unions is intended to provide a framework for a sound financial road map that would allow PMN to serve the rapidly changing needs of our readership while also recognizing today’s economic realities.”

Full memos from both sides are below:

To all PMN employees:
We all know that The Philadelphia Inquirer, Daily News and Philly.com form the bedrock of the highly respected journalism in our region provided by no other organization.  For that reason, it is essential that our Company remain economically strong.

It is critical to the long-term future of the Company to be financially self-sustaining.  Our position in the collective bargaining negotiations with our unions is intended to provide a framework for a sound financial road map that would allow PMN to serve the rapidly changing needs of our readership while also recognizing today’s economic realities.

I have given substantial donations over the years to charitable institutions.  PMN is not a charity but rather it is a business, and as such it must be self-sustainable. I have invested in the Company without any expectation of financial rewards but rather because of my belief that these institutions are worth preserving. However, like the rest of the news industry, PMN faces serious economic challenges, and we all have to work together to do what is needed to ensure the long-term viability of the newspapers and Philly.com.

I am proud of the progress in excellent journalism we have made in the past year and thank you for what you do to serve this great City and region.

Gerry

And from the Guild:

Subject: Guild Bulletin – Oh, but it is a charity!

We appreciate Mr. Lenfest taking responsibility for this enterprise. We agree that it should be a sustainable commercial success.
But we have nothing left to give.
For us, this company has been a charity. We have lost our pension. We haven’t had a raise in six years. In fact, we have given back raises. We have paid more for health care because the company has not increased its contribution in 15 years. It has, however, increased its contributions to the Teamsters health fund. We are the only union to endure unpaid furloughs, going back to 2009. We have picked up the work of our laid-off and bought-out colleagues without complaint.
The company negotiators do not appreciate these sacrifices. They won’t even acknowledge them. What they are asking for in these talks imposes severe economic hardship on us and their seniority proposal adds suffering by putting most employees at risk of being laid off for political reasons.
Please join us noon Thursday for a rally at 8th and Market streets.

Howard Gensler

Bill Ross

Diane Mastrull

Cindy Burton

Melanie Burney

Regina Medina

Brian McCrone