Hearst and the Chronicle’s refusal to share its audited books should raise serious red flags for workers.
Text by Sarah Phelan.
We all know that the economy is in bad shape and that the newspaper industry is hurting. But before Guild members vote this Saturday at the Parc 55 Hotel on whether to accept a deal that cuts 150 jobs and eliminates seniority, they should demand to see the audited records of both the Hearst and the Chron.
Back in 2005-2006, Local 4, which represent pressmen at the Chronicle, hired Peter Donahue of PBI Associates to assess allegations that the Chron and/or Hearst could not meet its obligations to the pressmen and other Chronicle employees.
To assess these claims, Donahue suggested the union should request audited financial statements for Hearst for the past ten years, audited financial statements for the Chron, and detailed statements of non-operating and operating costs, “distinguishing clearly between actual expenditures, set-asides and inter-corporate transfers” for Hearst, the Chron, SFgate and the San Francisco Newspaper Agency, for the past 10 years.
“No such information was provided by Hearst,: Donahue advised Local 4’s then President Anthony Price. “Without such information, allegations that the newspaper or the Corporation are unable to meet their obligations are unfounded, only repeat claims that the company has been unwilling and unable to support with credible evidence.”
To see the full text of Donahue’s letter, click here.