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Next Generation Unionism and the Future of Newspapers

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Next Generation Unionism and the Future of Newspapers Next Generation Unionism and the Future of Newspapers: NG NETWORKI EURSHIP EnTREPREN HYBRID OWNERSHIP EXTRA! EXTRA! Next Generation Unionism and the Future of Newspapers: NETWORKING, EnTREPRENEURSHIP AND HYBRID OWNERSHIP Chris Benner Human and Community Development Center for Regional Change University of California, Davis One Shields Ave, 1309 Hart Hall Davis, CA 95616 [email protected] (530) 754-8799 With Samantha Sommer MS, Community Development and Luther Jackson Economic Stimulus Manager, NOVA Workforce Investment Board Formerly Executive officer, San Jose Newspaper Guild/CWA Local 39098 April 2010 Thanks to Tim Rainey and the California Labor Federation for financial support and inspiration. TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................... i I. InTRODUCTION ..................................................................................................................1 II. CRISIS IN THE NEWSPAPER InDUSTRY .............................................................................5 Circulation ......................................................................................................................5 Declining Revenue ..........................................................................................................7 Internet Presence ...........................................................................................................9 Signs of an Industry in Crisis ...........................................................................................9 Northern California Newspaper Industry ........................................................................10 III. UnDERSTANDING THE DEEPER CAUSES OF CRISIS .........................................................15 Culture of hierarchy: The Black Model-T newspaper .......................................................16 Community of isolation ..................................................................................................16 Cash disconnected from quality .....................................................................................17 Result of culture, cash and community: Non-innovative technology .................................17 IV. SKETCHING AN ALTERNATIVE FUTURE OF THE DAILY NEWS & InfORMATION InDUSTRY ... 22 Network enterprise .......................................................................................................23 Entrepreneurial Reporting .............................................................................................26 Hybrid Ownership .........................................................................................................28 V. NEXT GENERATION UnIONISM IN THE NEWSPAPER InDUSTRY ........................................31 Next Generation Unionism .............................................................................................31 Next Generation Newspaper Guild ..................................................................................32 VI. CONCLUSION .................................................................................................................39 REFERENCES .......................................................................................................................40 InTERVIEWS .......................................................................................................................41 EXECUTIVE EXTRA! SUMMARY EXTRA! a culture of hierarchy and assembly line “It is not the strongest of the species production that has stifled innovation and experimentation. that survives, nor the most intelligent, a deficiency of local community ties, rooted but rather the one most adaptable to in a largely undifferentiated approach to consumers and the resulting minimal change.” Clarence Darrow understanding of the information needs and desires of much of their consumer base. and sources of cash that are structurally he signs of crisis in the newspaper industry are all disconnected from the quality of their around. Headlines about plummeting stock prices, primary product. Tbankruptcy filings, widespread lay-offs and newspaper closings have become common place in the past two Second, an alternative future for the newspaper years. It is also not hard to find the immediate causes of industry is possible, and this future is likely to include the crisis. The explosion of the World Wide Web has some elements of the following three factors: dramatically changed the way most people get their news, a network enterprise model, with multiple undermining the newspaper business model in the process. revenue sources, interactive network While most newspapers have developed significant relationships and value-added data and web-based readerships to offset declines in daily paper information, in which localized, tacit circulation, web-based sources of revenue have failed to employee knowledge is a critical component make up for the dramatic decline in traditional retail and of the competitive advantage newspapers classified advertising revenue. Compounding this longer have. term structural weakness, the current recession is crippling entrepreneurial reporting and salesmanship, in advertisers and increasing the pace of job cuts. The result is which journalists leverage their community a crisis from which many newspapers may not survive. knowledge and relationships to take a But this crisis doesn’t just present dangers. It also greater role in identifying new revenue presents opportunities--for a new, restructured and opportunities and business models, as part of revitalized journalism in this country. Identifying and their information gathering functions, and taking advantage of these opportunities, however, requires advertising salespeople help leverage client a deeper understanding of the reasons why newspapers relationships and community connections to have had such a difficult time adapting to the changed co-create new individualized business models media environment, and using this understanding to with advertisers. guide new business models and new roles for newspaper hybrid ownership, in which the dual functions industry stakeholders. of newspapers, as both for-profit businesses In investigating these deeper causes and solutions, this and important public services, are more report makes three central points. First, the reasons directly reflected in the ownership structure most newspapers have had a difficult time adapting to of the newspapers. the technological and economic changes in the media Third, the California Media Workers(CMW) union environment is rooted in "three Cs" associated with their can and should play a significant role in contributing organizational structures and practices: Next Generation Unionism and the Future of Newspapers • i FIGURE 1 to this promising future in the newspaper industry, skills development. The challenges the CMW faces both in Northern California and nationwide. As the in realizing these ambitious goals are essentially the representative of the most valuable asset newspapers same as any union whose members work in an industry have—skilled workers—and with important ties to undergoing a wrenching structural change: figuring out community stakeholders who care deeply about the how to move beyond business as usual and reacting to quality of local news, the CMW brings a unique set of crisis, towards directly addressing the industry changes assets and perspectives that can be an important part of and the impact on its members. But the union is already the future of journalism. Successfully achieving this role making innovative strides in this direction, building on would require some significant changes in organizational the ideas represented in Figure I. These efforts provide practices and roles of the union itself, involving the hope for a new and revitalized next generation union for Guild playing a more active role as a business partner, the newspaper industry in the internet age, and could as a liaison with community stakeholders (including provide guidance for other unions addressing substantial former employees, freelancers, and potential future industry changes. employees), and as a source of ongoing training and ii • Next Generation Unionism and the Future of Newspapers Next Generation Unionism and the Future of Newspapers • iii I InTRODUCTION EXTRA! EXTRA! he signs of crisis in the newspaper industry are in the Northern California newspaper industry.1 all around. Headlines about plummeting stock The central goal of the research was to understand the Tprices, bankruptcy filings, widespread lay-offs and impact of the restructuring of the newspaper industry on newspaper closings have become common place in the workers in the industry. More importantly, however, the past two years. It is also not hard to find the immediate research was designed to analyze ways that a restructured causes of the crisis. The explosion of the World Wide and revitalized California Media Workers union might be Web has dramatically changed the way most people get able to provide significant contributions to the future of their news, undermining the newspaper business model the Northern California newspaper industry and discover in the process. While most newspapers have developed new ways to grow through innovative organizing and significant web-based readership to offset declines in representation approaches. daily paper circulation, web-based sources of revenue have In investigating these deeper causes
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