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 n Introductio

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 and solutions to failed to make up for the dramatic decline in traditional the current crisis, this report makes three central points. retail and classified advertising revenue. Compounding First, that the reasons most newspapers have had a this longer term structural weakness, the current recession difficult time adapting to the technological and economic is crippling advertisers and increasing the pace of job cuts. changes in the media environment is rooted in “three The result is a crisis in which many newspapers may not Cs” associated with their organizational structures and survive. practices: But this crisis doesn’t just present dangers. It also  a culture of hierarchy and assembly line presents opportunities--for a new, restructured and production that has stifled innovation and revitalized journalism in this country. Identifying and experimentation. taking advantage of these opportunities, however, requires  a deeper understanding of the reasons why newspapers a deficiency of local community ties, rooted have had such a difficult time adapting to the changed in a largely undifferentiated approach media environment, and using this understanding to to consumers and the resulting minimal guide new business models and new roles for newspaper understanding of the information needs and industry stakeholders. desires of much of their consumer base.  This report intends to contribute to developing that and sources of cash that are structurally deeper understanding, while focusing particularly on disconnected from the quality of their ‘frontline’ newspaper staff (journalists and advertising primary product. salespeople) and their unions. The report is an Secondly, we argue that an alternative future for the independent analysis, commissioned by the San Jose newspaper industry is possible, and that this future is Newspaper Guild/CWA Local 39098 (now part of the likely to include some elements of the following three California Media Workers Guild/CWA local 39521 or factors:

CMW), with financial assistance of the California Labor  a network enterprise model, with multiple Federation’s Workforce and Economic Development revenue sources, interactive network program. It is based on an extensive review of secondary relationships, and value-added data and material, newspaper industry and Guild documents, a survey of 123 former newspaper employees and in- 1 Twenty of these interviews were in-depth one-on-one interviews. The depth interviews with an additional 45 industry experts, remaining were part of three focus groups: one with current employees of San Francisco Bay Area CMW-represented newspapers, one with including newspaper employees, managers, and analysts former newspaper employees, and one with community stakeholders. Next Generation Unionism and the Future of Newspapers • 1 information, in which localized, tacit union itself, involving the Guild playing a more active employee knowledge is a critical component role as a business partner, as a liaison with community of the competitive advantages newspapers stakeholders (including former employees, freelancers, have. and potential future employees), and as a source of

 entrepreneurial reporting and salesmanship, in ongoing training and skills development. The challenges which journalists leverage their community the CMW faces in realizing these ambitious goals are knowledge and relationships to take a essentially the same as any union whose members work greater role in identifying new revenue in an industry undergoing a wrenching structural change: opportunities and business models, as part of figuring out how to move beyond business as usual and their information gathering functions, and reacting to crisis, towards directly addressing the industry advertising salespeople help leverage client changes and the impact on its members. But, as discussed relationships and community connections to later in the report, the union is already making innovative co-create new individualized business models strides in this direction, providing hope for a new and with advertisers. revitalized next generation union for the newspaper industry in the internet age.  hybrid ownership, in which the dual functions of newspapers, as both for-profit businesses The report is structured as follows. The next section and important public services, are more briefly reviews the broad crisis currently gripping the directly reflected in the ownership structure newspaper industry, and includes a specific focus on of the newspapers. restructuring in the Northern California newspaper industry in this context. This is followed by a more Our third central point is that the California in-depth analysis of the organizational structures Media Workers (CMW) union can and should play a and practices that have contributed to the difficulties significant role in contributing to this promising future newspapers have had in addressing long standing in the Northern California newspaper industry. As the threats to the industry. We then begin sketching out an representative of the most valuable asset newspapers alternative future for the industry. We then continue with have—skilled workers—and with important ties a discussion of the CMW union’s potential contribution to community stakeholders who care deeply about to that alternative future as well as the union’s efforts the quality of local news, the CMW union brings a to date to build a “next generation” foundation. We unique set of assets and perspectives that can be an finish with some concluding thoughts about some of the important part of the future of journalism. Successfully barriers to implementing this alternate future. achieving this role would require some significant changes in organizational practices and roles of the

2 • Next Generation Unionism and the Future of Newspapers Next Generation Unionism and the Future of Newspapers • 3 II Crisis in the dustry Extra! Newspaper In Extra! he basic parameters of the newspaper industry readership in the U.S. was attained in 1984, when daily crisis are clear. Overall circulation levels have been circulation hit 63.3 million. Total Sunday circulation Tdeclining since the early 1990s, as the development peaked at 62.6 million in 1994. Since then, as shown in of the World Wide Web resulted in an explosion of new Figure 1, both Sunday and daily circulation numbers have sources of news and information. Declining circulation plummeted to approximately 48.6 million (daily) and is also associated with generational differences in 49.1 million (Sunday) in 2008, down over 20% from their news readership, with younger readers less dependent peaks for both daily and Sunday circulation, despite the on traditional newspapers for their information, and total U.S. population having grown by nearly 15% in that ethnic differences in news readership, with Latinos (the time. fastest growing ethnic group) the least reliant on papers Much of this decline in circulation is rooted in younger for news. Coinciding with the decline in circulation populations. For example, while weekly readership in has been a collapse in traditional revenue sources. 1980 for people aged 55+ was 70.5%, readership for Newspapers have expanded their web-presence, but people aged 18-24 was only slightly more than 10% have struggled to generate sufficient web-based revenue. less, at 59.4% of the population. By 2007, while the The results are predictable: massive lay-offs, stock price proportion of weekly readership in the population aged collapse, declining quality, declining reputation of many 55+ had declined somewhat to 63.7%, weekly readership newspapers and an increasing inability to adequately in the population group 18 to 24 years old was barely serve readers and advertising customers. more than half this level, only 33.9% (see Figure 2). Circulation In addition to the generational differences in patterns of newspaper circulation, there are also significant ethnic According to the Newspaper Association of America, differences. Readership among African-Americans and the peak of daily (both morning and evening) newspaper the Hispanic population has been significantly less than

figure 1

Next Generation Unionism and the Future of Newspapers • 5

figure 2

figure 3

6 • Next Generation Unionism and the Future of Newspapers readership in the white population, as shown in figure figure 4 3. By 2007, while total weekly newspaper readership amongst the white, non-Hispanic population was 50%, it was only 30.5% amongst the Hispanic population. Since Hispanics are the mostly rapidly growing racial group in the U.S., this gap in readership is particularly troublesome.

Most people get their national and international news from television, rather than newspapers. But as Figure 4 shows, it now appears that newspapers have even fallen behind the internet as a source of national and international news. Declining revenue In addition to declining circulation, newspapers since Source: Pew Research Center for the People & the Press: http://people- 2000 have faced a precipitous decline in advertising press.org/report/479/internet-overtakes-newspapers-as-news-source revenue. For most newspapers, advertising constitutes recessions of both the early 1990s, and early 2000s. But the majority of their revenue—in 2000, for example, the cyclical downturns have been exacerbated by the advertising accounted for 82 percent of total newspaper structural shift of much advertising from newspaper to revenue (Meyer 2004, p37). But as Figure 5 shows, on-line sources. In fact, total advertising revenue, when total newspaper advertising revenue has declined since adjusted for inflation, was lower in 2008 than in every 2000, exacerbated by both cyclical and structural factors. year since 1975, and the final figures for 2009 are likely Advertising revenue for newspapers declined in the figure 5

Next Generation Unionism and the Future of Newspapers • 7

figure 6

to be on par with 1965.2 Overall advertising revenues, flat 2000 (Luther Jackson, CMW, personal communication, in 2006, fell by 23% industry-wide in two years, declining information from industry source). 3 from $49.3 billion in 2006 to $38 billion in 2008. The burst of the real estate bubble took away what The biggest dollar generators in classifieds— had been a positive for papers in the overheated markets automotive, employment, real estate—are only a fraction of 2005 and 2006. Retail and national advertising were of what they used to be, as they have been wiped out only off a little, but all categories of the once-lucrative by online competition and the state of the economy. classifieds are losing share, a gradual decline that looks to The worst damage has been to classifieds, which once be irreversible.4 As recently as 2006, real estate classified accounted for 40% of overall advertising revenue and was in positive territory, up 20% for the industry. But with was a particularly profitable segment. Nationally, total the housing bust of 2007 came an advertising collapse classified advertising expenditures declined to under $10 too. Revenue was down as much as 40% in former boom billion, down nearly 60% from a peak of $24.5 billion markets like California and Florida; newspapers in those in 2000 (see Figure 6), with revenue from employment states had the worst year-to-year total advertising revenue advertising particularly hit hard, down more than 80% declines.5 from its peak. At the San Jose Mercury News, classified In the job listings category, the biggest losses came with revenue reportedly dropped to under $70 million in the rise of such websites as Monster.com and craigslist. 2008 from about $190 million at the peak in or about org. Newspapers have regrouped to a degree, partnering

2 http://www.cjr.org/the_audit/newspaper_industry_ad_revenue.php 3 Pew Project for Excellence in Journalism, State of the News Media 2009 4 http://journalism.org/node/11961 http://www.stateofthemedia.org/2009/index.htm 5 www.stateofthenewsmedia.org 8 • Next Generation Unionism and the Future of Newspapers with industry-owned CareerBuilder, Yahoo HotJobs would surpass $34 billion.7 In fact, on-line advertising and even Monster itself. This essentially involves sharing revenue actually declined in 2008 from the previous year, a business the industry once had to itself, and 2008 another casualty of the economic recession.8 With the marked another year of decline, with total employment higher readership on the web, but higher advertising advertising revenue down more than 42% from the expenditures in print, the Columbia Journalism Review previous year. estimated that for every print reader in 2008 newspapers

In the automotive category, advertising revenue is brought in $709 in advertising revenue, while for every 9 another disaster, unlikely to get better soon. The weakness web reader they brought in $46. With these numbers, in the U.S. car industry hurts; there are fewer local it is perhaps no surprise that newspapers have been slow dealerships, and these get smaller advertising allowances in embracing web opportunities! The other challenge from parent companies. Plus, car dealerships have their of current patterns of web-usage is how much of total own interactive websites, often preferred by customers. web-traffic is dominated by the largest few newspaper sites. The New York Times alone garnered an estimated Internet Presence 19.5 million unique visitors a month in 2008, nearly Most newspapers, of course, have developed extensive 8.8 million more than its nearest competitor, USA 10 websites. When readership of the print and on-line sites Today. The top three newspaper web-sites in 2006 (the are combined, many newspapers claim they are actually New York Times, Washington Post and USA Today) reaching more total readers than in the past. Thus, for combined accounted for more than 26% of the total example, while the San Jose Mercury News in 2008 had number of unique visitors of the top 100 newspaper web- 11 a daily circulation of 227,119 and Sunday circulation of sites. 244,661, its combined print and web weekly net audience Signs of an industry in crisis was 1,195,377. For the San Francisco Chronicle, the similar numbers are 312,118 daily, 354,752 Sunday, and Perhaps the most striking impact of the dramatic 1,850,536 net print and web combined.6 changes in the newspaper industry is how much newspaper companies have seen their value on Wall The trouble with this web-development is that Street collapse. The McClatchy Company, for example, newspapers have struggled to generate sufficient revenue saw its share price plummet more than 99% from its from web-based advertising or services to compensate for peak of $75 in 2005 to as low as $0.35 in 2009, though it the decline in traditional print sources of revenue. Overall had recovered to a value of $1.83 by September 1, 2009. in the U.S., as shown in Figure 5, web-based advertising Between January 1, 2007, and September 9, 2008, even expenditure was only $3.1 billion in 2008 up 18% from before the dramatic overall Wall Street collapse, shares of 2006 (though slightly down from the pre-recession year in 2007). But this is compared with $34.74 billion 7 Source: Newspaper Association of America: http://www.naa.org/ TrendsandNumbers/Advertising-Expenditures.aspx in print advertising expenditure in 2008, which was 8 http://www.stateofthemedia.org/2009/printable_newspapers_economics. down nearly 18% from the previous year. Even if 20% htm# 9 http://www.cjr.org/the_audit/post_11.php?page=all growth rates in on-line advertising expenditure could be 10 http://www.niemanlab.org/2009/02/top-15-newspaper-sites-of-2008/ 11 According to Nielson/Netratings, via Newspaper Association of sustained (an extremely unlikely prospect), it would be America, NAA NADBase Nov 2006. Using somewhat different data that doesn’t include USA Today, the updated Audience-FAX online the year 2021 before total on-line advertising expenditure database, run jointly by NAA, the Audit Bureau of Circulation and Scarborough Research, found that the concentration amongst the largest sites had declined somewhat by March 2009. According to these figures, the top three sites (LA Times, NY Times and NY News) accounted for 20% of all unique visitors of the top 100 newspaper sites, but 31% of all page-views. Calculated from data available at: http://online.audiencefax. 6 http://online.audiencefax.com/ com/ Next Generation Unionism and the Future of Newspapers • 9 other media companies had declined significantly as well: its full-time employees. And even this reduction wasn't Gannett down 71%, New York Times down 43%, News enough to avoid another round of buyouts. McClatchy Corporation down 36%, Lee Enterprises down 89%, flagship Bee Publisher Cheryl Dell, in an article by Dale Washington Post down 19% (source, CWA Research Kasler posted on the Bee’s Web site in March 2009, said Department). While the MediaNews Group, the largest the continued economic downturn, plus the bankruptcies owner of newspapers in Northern California, is a private of such big advertisers as Linens ‘n Things and Mervyns, company, it has also clearly faced the same financial crises. convinced the paper more reductions were needed.16 Revenue in the 4th quarter of 2007 was down nearly 8% Northern California Newspaper from the previous year. MNG had gone into significant debt to finance its 2006 purchase of four former Knight Industry Ridder papers from McClatchy. In June 2008, Standard The processes affecting newspapers nationally have & Poor’s lowered MNG’s credit rating from B-minus to been felt particularly strongly in the San Francisco Bay CCC, essentially junk status. By the first half of 2009, Area. What makes the Bay Area, and particularly the MNG had asked S&P to stop rating its debt, and skipped South Bay/San Jose area, an especially striking and paying the principal on its debt as it negotiated with important place for understanding these changes is lenders to give it time to reorganize its finances.12 MNG that it has been at the epicenter of the technological tried to develop a new debt restructuring plan during developments that are such a critical component of the 2009, but by January 2010 decided its only option was to dramatic industry upheavals. And yet newspapers in the declare bankruptcy. Bay Area have arguably fared worse than anywhere else.

The industry has also experienced large-scale layoffs. The most prominent paper in the region has been the During one single week in June 2008, nearly 1,000 San Francisco Chronicle. Founded as The Daily Dramatic newspaper journalists across the nation were handed Chronicle in 1865 by the prominent San Francisco de their pink slips, according to a tally by Mark Potts, who Young Family, by the 1990s it had grown to the largest runs the blog “Recovering Journalist.”13 At the country’s circulation paper in Northern California. The de Young 100 largest newspapers, more then 6,300 employees family controlled the newspaper until 2000, when it was were laid off or bought-out in 2008. One website has sold to the Hearst Corporation. The Hearsts, another tracked published reports of layoffs and buyouts at U.S. prominent San Francisco elite family, had owned the newspapers totaling 16,000 jobs in 2008 and more rival San Francisco Examiner since 1880. For 35 years, than 14,845 in 2009.14 At the San Jose Mercury News, starting in 1965, The Chronicle and the Examiner by mid-2008, the staff had been pared by a full 62.5% operated under a Joint Operating Agreement, with the from its peak strength in 2000 with lay-offs continuing Chronicle publishing in the morning and the Examiner into the summer of 2009.15 Even the Sacramento-based in the afternoon. They published a joint Sunday version McClatchy, which had long resisted lay-offs, joined the of the paper. When Hearst bought the Chronicle in trend in 2008. Just two months after eliminating 86 order to satisfy anti-trust concerns, it sold the Examiner jobs in across-the-board layoffs, the Sacramento Bee to another prominent San Francisco elite family, the announced it was offering voluntary buyouts to 55% of Fang Family, which later transformed it into a free daily tabloid.17 Meanwhile, the Chronicle has continued to 12 http://www.bizjournals.com/denver/mobile/stories/2009/03/30/daily84. html struggle to survive, losing more than $50 million in 2008 13 http://recoveringjournalist.typepad.com/ 14 http://graphicdesignr.net/papercuts/ 15 http://newsosaur.blogspot.com/2008/06/sj-merc-staff-gutted-by-625. 16 http://www.sacbee.com/ourregion/story/1685570.html html 17 http://www.sfgate.com/c/history/ 10 • Next Generation Unionism and the Future of Newspapers and the Hearst Corporation threatening in February the early 2000s until the present.” Initially, “the boom 2009 to sell or shut down the Chronicle entirely unless was a great boon to the Mercury News, journalistically they could achieve dramatic cost savings in a short period and economically. And it fell faster and farther than of time.18 any equivalent newspaper.” (source: September 1, 2009

The other prominent newspaper publisher in the e-mail from Bettinger to Luther Jackson) Being in the Bay Area was Knight Ridder Inc., formed in 1974 by heart of Silicon Valley, many of its traditional advertisers the combination of Knight Newspapers and Ridder were quicker to jump to alternative technology mediums 19 Publications. For a brief time after this merger, it was than in other areas. the largest newspaper publisher in the United States. In Between 2001 and August 2009, the Mercury News the Bay Area, Knight Ridder owned the San Jose Mercury sliced its Newspaper Guild-represented staff from 820 News, and over time bought a range of other newspapers to 200. Tony Ridder in November 2005 announced and newspaper groups, include the Contra Costa Times plans for “strategic initiatives” to restructure, including (and a host of local community and weekly papers in the possibility of selling. In March 2006, McClatchy Contra Costa County), and the Daily News Group announced its plans for purchasing Knight Ridder (which included a number of local papers mostly in San for $6.5 billion, but immediately turned around to Mateo County and the Monterey County Herald). Just sell 12 of the former Knight Ridder papers. After before Knight-Ridder was sold in 2006, the combined Ridder had announced the ‘strategic initiatives’, The circulation of the San Jose Mercury News and the Contra Newspaper Guild – Communications Workers of Costa Times alone was 422,000, making them larger than America engaged experts to explore the possibility of an the San Francisco Chronicle (Layton 2006). employee stock ownership plan purchase of a number

For most of its history, Knight Ridder had its of the Knight Ridder papers, with financial backing of headquarters in Miami, in the same building as its the Yucaipa Companies. Despite making substantial flagship newspaper The Miami Herald. But in 1998, offers for a number of papers, the employees were Knight Ridder relocated its headquarters to San Jose, in out-bid. Eventually, in April 2006, the MediaNews the heart of Silicon Valley, where the Mercury News was Group (MNG), with financial backing from the Hearst one of the first daily newspapers to regularly publish its Corporation, bought the San Jose Mercury News, Contra full content online. Costa Times, Monterey Herald, and St. Paul Pioneer Press.

Clearly the move to Silicon Valley did little for the MediaNews’ foray into the Bay Area began modestly success of the company. Starting in the spring of 2001, enough in 1985, when chief executive William Dean the Mercury News began cutting staff and budgets, as Singleton bought three family-run newspapers in the their traditional sources of revenue dried up. According cities of Hayward, Pleasanton and Fremont. Over time to Jim Bettinger, Director of the John S. Knight he added other small papers in the area and by 2002 had Fellowship Program for Professional Journalists at nine papers – including the Oakland Tribune - in what Stanford University: “I can think of no newspaper that he called the Alameda Newspaper Group (Layton 2006). benefitted more from the technology boom of the late By the mid-2000s, MNG and Knight Ridder controlled 1990s and suffered more as that boom took hold through nearly all the major newspapers in the region. (figure 7.

19 Presentation to Knight Commission on the Information Needs 18 http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/24/ of Communities in Democracy Community Forum, Google.com BUannounce.DTL&tsp=1 headquarters, September 8, 2008.

Next Generation Unionism and the Future of Newspapers • 11 figure 7

12 • Next Generation Unionism and the Future of Newspapers Source: San Jose Newspaper Guild, CWA)

With the purchase of the former Knight Ridder papers, Media New Group owned a total of 29 papers in Northern California and, with the noted exception of the San Francisco Chronicle, had a near monopoly control over all significant daily papers in the Bay Area.20 This consolidation of ownership allowed MNG to continue a process Knight Ridder had begun earlier of consolidating business and reporting functions of the various newspapers as well.

Of course, along with the decline in staff and financial stability has come a reduction in capacity for investigative reporting and a drop in overall quality and reputation. Drastic workforce cuts have increased pressure on remaining staff to carry out existing functions, leaving very limited resources to engage in the research and development activities needed to help the industry adapt to structural and cyclical changes.

20 The northern California papers owned by MNG include: Alameda Times-Star (Alameda), The Argus (Fremont), The Daily Review (Hayward), Daily Democrat (Woodland), Enterprise-Record (Chico), Contra Costa Times (Contra Costa), Ft Bragg Advocate News (Ft Bragg), Humboldt Beacon, Lake County Record-Bee (Lakeport), Marin Independent Journal (Marin)Mendocino Beacon (Mendocino), Milpitas Post (Milpitas), Monterey County Herald (Monterey), Oakland Tribune (Oakland), Pacifica Tribune (Pacifica), Paradise Post (Paradise), Oroville Mercury-Register (Oroville), Red Bluff Daily News (Red Bluff ), Redwood Times (Humboldt), San Jose Mercury News (San Jose), San Mateo County Times, Santa Cruz Sentinel, Times-Standard (Eureka), Times-Herald (Vallejo), Tri-City Weekly, Tri-Valley Herald (Pleasanton), The Ukiah Daily Journal, Vacaville Reporter (Vacaville), Willits News (Willits)

Next Generation Unionism and the Future of Newspapers • 13 III nding Understa eeper Causes Extra! the D Extra! of Crisis learly the development of the World Wide Web swerve at the last minute, which minute is looking has created significant challenges for the newspaper increasingly like now.22 Cindustry. But why have newspaper companies been Indeed, newspaper publisher Knight Ridder, former so slow and ineffective in finding ways of competing in a owner of the San Jose Mercury News and the Contra transformed media market? Costa Newspapers, moved its headquarters from Miami It is clearly not from lack of awareness of the dramatic to San Jose in 1998 precisely because they saw the dramatic nature of the changes in the media market underway. changes the development of the internet was bringing University of North Carolina, Chapel Hill Journalism to the media industry. Knight Ridder chairman Tony Professor Philip Meyer argues that the recognition of a Ridder explained this move as being central to the future challenge to the industry emerged as early as the 1960s. business strategy of the company, and directly related to Writing in a prominent article in the American Journalism addressing the challenges of the new economy:

Review in 1995, warning of declining revenue, he said: “Silicon Valley is like Detroit at the turn of the “The readership decline was first taken seriously century. If you wanted to succeed in the automobile in the late 1960s, when new information sources business, Detroit was the place to be.”23 “There is no began to compete successfully for the time of doubt that new technology and the emerging power the traditional newspaper reader. Competition of the Internet will greatly affect how people will spawned by technology began long before talk get their news and information….As a news and of the electronic information highway. Cheap information company, we want to stay very close to computer typesetting and offset printing led to the developments related to this new medium.”24

explosive growth of specialized print products that Through the height of the late 1990s and early could target desired audiences for advertisers. Low 2000s internet boom and bust, Mercury News reporters postal rates combined with cheap printing and provided high quality coverage and deep insights computerized mailing lists spurred the growth of into new business models, economic structures, and direct mail advertising. In short, the owners of the technological convergence driving other Silicon Valley- traditional toll road have been in trouble for some based companies. At the core of these insights was a 21 time now, and they know it.” recognition of the importance of flexibility, innovation, Internet analyst and NYU instructor Clay Shirky flat and horizontal management structures with captures the situation well: empowered and incentivized front-line workers, and

…no one has been “caught up in this great networked business relations. Yet the Mercury News upheaval.” Caught up? That makes it sound like was not able to incorporate these insights into their own a tornado. This change has been more like seeing business model any better than other newspapers. oncoming glaciers ten miles off, and then deciding Why has it been so difficult for newspapers to take not to move. By the turn of the century, anyone advantage of new technologies and develop more who didn’t understand that the business model for innovative models of journalism and more robust business newspapers was a wasting asset was caught up in models? nothing other than willful ignorance, so secure in their faith in the permanence of their business that 22 http://www.boingboing.net/2008/12/08/the-newspaper-indust.html they assumed that those glaciers would politely 23 As quoted in Editor & Publisher, April 29, 1998 http://www.allbusiness. com/services/business-services-miscellaneous-business/4681523-1.html 24 As quoted in the Los Angeles Times, April 29, 2008. http://articles. 21 (http://www.ajr.org/article.asp?id=1461 latimes.com/1998/apr/29/business/fi-44029 Next Generation Unionism and the Future of Newspapers • 15 In essence, we argue, newspapers have had a difficult all the complex component pieces of the newspaper, there time adapting to the technological and economic changes is little time for process innovations and experimentation. in the media environment due to three factors related The division of labor is deeply entrenched—editors to the organizational structures and practices that have make big picture decisions about what the daily content developed over the past century. For ease of memory, will be. Journalists create the content, with certain we refer to these factors as the “three Cs”: a culture of leeway in proposing and developing story ideas based hierarchy and assembly line production that has stifled on information they receive in the course of their work innovation and experimentation; a deficiency of local and their professional judgment. Yet they must produce community ties, rooted in a largely undifferentiated within the time-frames dictated by the daily assembly- approach to consumers and the resulting minimal line process, in order for everything to be assembled understanding of the information needs and desires of in time to be printed and distributed for the morning much of their consumer base; and sources of cash that breakfast table. Much like an assembly line, there are not are structurally disconnected from the quality of their sufficient structures in this model for newspaper workers primary product. We explain each of these in more detail to leverage their proprietary community relationships and below. knowledge and share their ideas about business model and other substantive changes in the product. Culture of hierarchy: The Black Model-T newspaper Community of isolation Newspapers’ traditional structure can be thought of The structure of a newspaper is also similar to an as being rooted in an assembly-line, mass production assembly-line production system in the sense that, despite model that would be very familiar in the Detroit of the their professional status and the classification of media old economy. Henry Ford’s famous quote about the as a ‘service industry’, front-line workers (journalists Model T car that “you can paint it any color, so long as and advertising salespeople) have few opportunities for it’s black” provides a useful analogy here. The essentially getting direct feedback from their newspaper consumers. assembly-line production structure of newspapers is Obviously journalists and advertising people are somewhat hidden by the fact that the content of the constantly talking to people in their local community—to newspaper changes everyday. Yet, just like an assembly get information for stories or to discuss advertising needs line that churns out products on a regular cycle, the daily and opportunities. Yet the end-user of the newspaper, the newspaper has to be put out everyday. person reading the product, has essentially no meaningful interaction with the people producing the product. In addition, just like the black Model T Ford, every Particularly prior to the development of e-mail, individual newspaper consumer gets essentially the exact same reporters at best received direct contact from a tiny product. There may be slightly different urban and minority of readers—the few who might be stimulated suburban editions, but consumers still have little or enough by a story to contact the reporter directly or write no ability to customize the product according to their a letter to the editor. Even with e-mail, only a handful of particular information needs or interests. Given the the hundreds of thousands of newspaper readers typically near monopoly market conditions most newspapers contact a reporter directly to comment on the quality or have enjoyed in their local markets, this lack of choice content of what is written. has further entrenched an insulated culture with little incentive for change for many years. For the vast majority of the reading consumers of newspapers, the only mechanism for communicating In the midst of the daily pressures of putting together 16 • Next Generation Unionism and the Future of Newspapers pleasure or dissatisfaction with the content or quality of to particular advertisers (e.g. profiles on regional real what is written in the newspaper is the simple decision estate market trends, or garden supplements in suburban of whether to buy the paper or not, to subscribe or not. markets).

This price mechanism is a poor measure of customer This structural separation of the front-line producers satisfaction in nearly all newspaper markets because of of the newspapers (the journalists) and the customers, the monopolistic (or at best oligopolistic) structure of and the deficiencies of consumer feedback mechanisms nearly all newspaper markets. Some local newspaper on quality of reporting has been reinforced by the ways markets have historically had enough customers to that newspapers developed to service their important support two or even a few daily newspapers, but most public function as an independent watch-dog, a function now have a single monopoly provider. With no ability widely recognized as being critical for maintaining a well- to customize their purchase, little or no choice for functioning democracy. Content-wise, the commitment competitive products, and the relatively low price of to maintaining an independent critical press is rooted purchasing a newspaper, detailed customer opinions about in the professionalism of newspaper staff. Structurally, what their particular information needs and desires were however, it is reinforced through a ‘firewall’ that developed in the newspaper were essentially ignored by newspaper between the newsroom on the one hand, and advertising editors, beyond what could be gleaned from overall and related support divisions of the business on the other. subscription levels and the occasional reader surveys and This firewall makes sense as a way of reinforcing the focus groups. professional judgment of reporting and editorial decision- Cash disconnected from quality making. After all, if advertisers have too direct an impact on news reporting, it can compromise the editorial The lack of attention to customer satisfaction was independence and investigative strength of a newspaper’s further exacerbated by the fact that the majority of reporting. Yet this structural separation between sources newspaper revenues come not from subscriptions but of revenue and the quality of the news and entertainment from advertising and classified ad revenue. The quality product makes it more difficult for newspaper companies of the news and entertainment content of newspapers to quickly and adequately respond to customers changing is essentially structurally separated from their primary information sources. source of revenue. In essence what newspapers have been selling is not news and information, but a near-monopoly Result of culture, cash and daily access to consumers. For advertisers and classified community: Non-innovative technology ad purchasers, the specific content and quality of the What have been the implications for newspapers’ newspaper reporting is only a secondary consideration— modern use of technology, given this culture of hierarchy, important only to the extent to which it shapes the lack of community connections, and sources of cash total number of readers and their socio-demographic disconnected from the content and quality of the characteristics. For most advertisers, newspapers have newspaper product? In essence the result is not that been simply a communication platform for reaching newspapers haven’t been using technology, but rather that their potential customer base, though to some extent they have been focusing on the technology itself, rather different advertisers are attracted to different portions of than the ways that technology could be used to change the newspaper (e.g. sports, entertainment, travel, local/ the organizational culture and develop more innovative national news, etc.) and newspapers spend significant business models capable of ongoing, real-time evolution. time developing custom inserts or sections to appeal Most newspapers first adopted the internet by simply

Next Generation Unionism and the Future of Newspapers • 17 moving their existing product on-line. Newspaper done in large companies can be classified as web-sites for many years have been essentially web- information-processing work, it would be remarkable based versions of the daily printed product. It is only in if the effective use of IT didn’t require changes in the recent years that newspapers have begun to experiment organization of production. Indeed, we found that with interactive technology in ways that might truly the costs and benefits of IT-enabled organizational revolutionize the industry. capital is typically many times larger than the direct

In short, newspaper web-based innovation has been IT investments themselves….Just as companies analogous to an automaker creating a new model car by invest in equipment and other capital, including changing the chassis while keeping the same old engine. computers, they must also invest in organizational capital. Our research shows that the organizational- The experience of newspapers is actually quite similar capital investment is typically 10 times larger than to the experience in other industries encountering the the average IT investment. Thus, IT is the catalyst, introduction of internet and other computer technologies. but organization capital is the hidden bulk of the There is a wide range of research looking at the role of iceberg."(Brynjolfsson 2005) ” technology in business operations in many industries. The consistent finding is that companies typically For companies trying to make efficient use of new introduce new technologies with the goal initially of technologies, the goal can’t be simply to automate simply doing the same sets of activities but in more existing functions, or to deliver similar products via a new efficient and productive ways. This can potentially lead medium. To be successful, firms typically need to adopt to incrementally more efficient businesses and more computers as part of a “system” or “cluster” of mutually rapid productivity improvements. Oliner and Sichel, reinforcing organizational changes (Milgrom and Roberts for example, calculate that two-thirds of the acceleration 1990). Some have gone so far as to argue for ‘obliterating’ in labor productivity in the late 1990s was associated former organizational systems, rather than simply with expanded spending on computer hardware and automating them (Hammer, 1990). The reengineering software (Oliner and Sichel 2000). But it is only when effort must break away from convention wisdom and the companies discover new uses for the technology organizational boundaries, be broad and cross-functional, that it can have transformative business impacts. MIT’s and use information technology not to automate Erik Brynjolfsson, one of the leading researchers on existing process but to enable new ones. Hierarchical technology and economic competitiveness, summarizes organizational structures can reduce communications his research in this way: costs when communication tasks are relatively simple, because they minimize the number of communications “The key to IT [information technology] links required to connect multiple economic actors, as productivity lies outside the CIO’s office. Our compared with more decentralized structures (Malone, most recent research suggests that whether IT 1987; Radner, 1993). But when information is more improves productivity depends primarily on the complex, research has shown that information technology complementary organizational investments that investment has greater returns in organizations that are companies make in addition to their IT investments. decentralized and have a greater investment in human That is, innovation in IT alone is insufficient. capital, rather than hierarchical communication structures Companies also need innovation in organizational (Bresnahan et al. 2002; Brynjolfsson and Hitt 2000; practices to reap the promised boost in productivity Milgrom and Roberts 1990). Summarizing more than growth. Considering that up to 70% of the work a decade worth of research on organizational change

18 • Next Generation Unionism and the Future of Newspapers and technological productivity, Brynjolfsson argues that and circulation revenues flowing, the bonus the most effective organizational changes include the goals met and everyone happy. Unfortunately, following: the best operators often don’t make the best

Moving from analog to digital, including converting innovators. When faced with unprecedented all analog processes to digital, as a way of freeing the challenge -- when the old levers didn’t work company from the physical limitations of paper and --the industry found itself outsmarted by 25 enabling other information system practices. innovators.

Opening information access, both laterally and It wasn’t that employees in newspapers had no vertically, to help employees and managers do innovative ideas, but that the culture within newspapers their jobs more productively and overcome the all too frequently didn’t encourage innovation and impediments of information flow sometimes even stifled it. The production-line culture of many associated with overly protective or possessive newspapers, with the associated lack of innovation and managers. culture of freedom, has stifled potential for utilizing the technology in a more robust way. The following quotes Empowering employees, since information has no are indicative: economic value if it doesn’t change a decision, and employees’ new access to information is useless unless “How can employees…pursue great ideas when they have the authority to make decisions. no one listened to you? We all had ideas. We were solicited and ignored. We could see things coming, Using merit-based incentives, to help motivate but we were stuck. News will not pay for itself. News employees to use the information and decision- is simply one piece of larger local info systems. Every making power they’re given (Brynjolfsson 2005). day that you talk about it is another day someone Other key factors include: investing in corporate comes along and takes a piece of the pie.” –former culture, including defining and promoting a cohesive set San Jose Mercury New Employee of high-level goals and norms that pervade the company; “Newspapers want to be innovative, but the hiring and promoting the right people; and investing structure is against the innovation. It is similar to a heavily in training and other forms of human capital military chain of command. If a soldier wants to be development. innovative, he can’t. The culture stifles innovations. For newspapers, at least in the northern California Look at Google in contrast. 20% of employee time companies we interviewed, the signs of such is spent on innovation. The deadline culture in transformative organizational changes are sorely lacking. newspapers…comes out of long history, and there Ken Doctor, a former VP for Content Services, Strategy is a need for changing that culture.”—www.spot.us and Editorial of Knight Ridder Digital, and currently founder David Cohn news industry analysis for Outsell, described the culture Similarly, there has been inadequate investment in in the industry this way: human capital. Training is limited. As people have been In the go-go days of margins of 25% and laid off, newspapers have lost some of their most valuable more, the highest accolade you could give a assets. People and their social networks are the critical publisher was to call him, and most of them component of a newspaper’s current and future success. were hims, a good operator. That meant he

knew how to move the levers, to keep the ad 25 Email to Luther Jackson, September 28, 2009. Next Generation Unionism and the Future of Newspapers • 19 In the context of losing these assets, and undermining the critical content of newspaper, the public watch- dog function has been undermined as well. Some of this undermining has been the result of lay-offs, with shrinkage in investigative capacity. Some of this undermining is the result of consolidation. In the past, major urban markets would typically have two or more major newspapers, often with significantly different editorial viewpoints and journalistic perspectives. With consolidation, and the failure of many major newspapers, this editorial diversity has been lost, further undermining the independent critical investigative voice that is so important to newspapers effectively serving that fourth estate function. Finally, as newspapers become more desperate financially, they focus more on telling simple stories that sell, further undermining the investigative content. :

The bigger problem is the currently operative economic imperative in the mainstream media industry itself. That imperative compels mainstream media broadcast news operations to do virtually anything they can to attract as many eyeballs as possible. In the process, many of these outlets have discovered that it is often hard to draw a big crowd and tell a complicated truth at the same time.— independent journalist (and Obama administration education policy official) Hal Plotkin

20 • Next Generation Unionism and the Future of Newspapers Next Generation Unionism and the Future of Newspapers • 21

IV n Sketching a Alternative Future of the Daily News Extra! n Extra! & Informatio Industry though their structure 10 years from now is likely to be significantly different from today. Some of the leading “We thought we were in the companies in this future are likely to emerge from today’s newspapers companies, and some are likely to emerge newspaper business. It seems like from completely different sources.

that’s what too many still think. In our analysis of current trends in the industry, They’re not. They’re in the news, this future is likely to include at least three broad characteristics: ‘network enterprise’ business structures; information, knowledge and entrepreneurial reporting, in which front-line connection business.” 26 workers take a more active role--and are given more active responsibilities--in identifying new business –John Temple, former editor, president and publisher of the Rocky Mountain News, the oldest newspaper in opportunities; and hybrid ownership, combining aspects Colorado until it printed its final edition on February of both for-profit and non-profit business models. We 27, 2009, after almost 150 years. will examine each of these in turn. Network enterprise In academic studies of the information economy, iven these challenges of new technologies in a there is now a wide-spread agreement about the value hierarchical organizational context, and the current of networks as a particular form of organizational Gdifficult business climate for newspaper companies, structure (Batt et al. 2001; Castells 1996; Graham and what is the likely future of newspapers and the newspaper Marvin 2001; O’Riain 2007; Sassen 2002; Saxenian industry? It is clear that the future of some newspapers 1994; Sturgeon 2002). During the industrial age, is non-existent. Since March 2007, at least 12 major 27 hierarchically organized firms and large corporations were metropolitan daily newspapers have stopped printing, the dominant form of economic organization, with firms and at least four publishers of newspapers, including seeking to keep the most critical aspects of the business those publishing major newspapers in Chicago, Los production within their own organizational boundaries. Angeles, Philadelphia and Minneapolis, have filed for 28 In the internet age, however, the most vibrant firms are bankruptcy, and even the company that owns the New those that are part of networks of organizations and are York Times, the most popular print and web-accessed linked by information and communication technologies. newspaper in the country, seems to be threatened with a Sometimes these organizational networks share closely looming debt-load as well. coordinated operations—such as the relationship At the same time, however, there is clearly a public between the major automobile companies and their need for quality daily journalism, and significant market supplier networks, or through closely linked licensing demand for these services. Furthermore, the overall agreements between allied companies. In other cases, digital information industry is one of the most dynamic perhaps epitomized through social networking sites like and vibrant areas of the economy. It is thus almost a Facebook, Twitter and YouTube, but also present through certainty that daily news sources will continue to exist, such platforms as Amazon.com or eBay, the network links are looser, and extremely diverse. In Amazon’s case, 26 http://www.johntemple.net/2009/09/lessons-from-rocky-mountain- for example, the company has negotiated marketing news-text.html 27 http://www.newspaperdeathwatch.com/ and distribution arrangements with a range of major 28 http://abcnews.go.com/Business/wireStory?id=6942690 Next Generation Unionism and the Future of Newspapers • 23 consumer goods companies (who also sell through their Journalism School has partnered with KQED-FM public own web-sites and physical stores), but they also have radio station to launch a nonprofit local news Web site arrangements with literally thousands of used book sellers for the entire San Francisco Bay Area, with $5 million in across the country, who may sell only a few books each, or initial grant support from F. Warren Hellman, co-founder up to thousands or more (Ghose et al. 2005). of a San Francisco based Private Equity Investment firm, 30 What does a network enterprise look like in the www.bayareanewsproject.org . newspaper industry? Many good examples of this Researchers at the City University of New York emerged from the Newspaper Next initiative launched Graduate School of Journalism have also developed by the American Press Institute in 2005 to explore detailed business plans for hyper-local news sites, arguing new business models for newspaper companies. At the that it is possible for a medium-sized metropolitan core, this project argued, these companies must stop market to finally support literally dozens of hyper local seeing themselves as newspaper companies, and instead sites, all employing several people and providing a range as “companies whose mission and business model was of different news, information, and advertising services.31 meeting the human needs for information, knowledge, Growth opportunities include expanding from this core solutions, social connection, choice-making, buying function of providing news, to being a source for helping and selling that arise in a given locale.”(Gray el al 2008, local residents and businesses know or do whatever it p5) The Newspaper Next 2.0 report goes on to use the takes to live in their area. Some examples of what such a analogy of a “local information and connection utility” as business could help with include the following: a better way of conceptualizing the role such companies Help consumers make good spending decisions: Through would play—perhaps continuing to produce newspapers not just providing advertising, but helping consumers in a printed form for some time, but only as one of many know what they need, what their choices are, what possible ways of fulfilling its mission. Daily news is products are best, who the best sellers/providers are, clearly one of the most prevalent information needs in where they are, how you can save money, and so on. For every local community. The challenge is how to provide examples, the site www.kudzu.com, or www.angieslist. a customized information source that directly meets com are the most prominent national services, but also consumer needs. a number of newspaper linked sites. One example is UC Berkeley’s Graduate School of Journalism has been www.PalmettoBizBuzz.com, developed by the Post and experimenting with a series of hyper-local news sites on Courier in Charleston, SC, which provides information particular neighborhoods of the Bay Area, with funding and reviews (including reader posted reviews) of business from the Ford Foundation and other donors. Their in the area. A similar model is www.HudsonValley.com, mission: “ to explore new ways to give communities back developed by The Times Herald-Record, of Middletown, the coverage they’re losing as regional newspapers shrink– NY. and also to be inventive about what digital journalism Help residents connect, talk and share with others: Clearly can do for all of us in the future. We’re learning new this is a massive information and connection need for ways of telling stories in sound, pictures, in cellphone people, given the rapid growth of social networking sites, dispatches, and in other forms of back-and-forth still such as facebook, myspace, and twitter. Yet there are few under development.”29 Examples include missionlocal. services to help people connect, talk and share with others org and oaklandnorth.net More recently Berkeley’s

30 http://www.nytimes.com/2009/09/25/business/media/25bay.html, 29 http://oaklandnorth.net/about/ 31 http://newsinnovation.com/category/hyperlocal/ 24 • Next Generation Unionism and the Future of Newspapers locally. One way this is being pursued is through local a customizable calendar function (a personal online niche sites. In the Sacramento area, for example, www. planner— www.pop.yorkregion.com ) which allows users sacmomsclub.com is an information and networking site to customize the calendar to only those preferred events, developed by the Sacramento Bee, complete with blogs, not only by category, but also by other characteristics such forums, events, and information devoted to helping as distance from home, location, and price, along with an moms in the region connect with each other. www. email notification services of key events.

sacpaws.com is a similar site devoted to pet owners in Help residents get answers about this place: www. the Sacramento region, with a vibrant photo and funny Wikipedia.com is the consummate example of this—a video section. In Monroe, Michigan, the local newspaper collectively produced reservoir of knowledge about developed a comprehensive community discussion site, nearly any topic you can imagine. www.Daviswiki.org www.MonroeTalks.com. Within six months, in a town is an example of a collectively produced repository of 32 with only 22,000 total residents (153,000 in the county) , knowledge about the city of Davis, CA. Similar efforts the site had reached a million page-views a month, with have been established in a number of surrounding 65,000 posts on 2,800 topics. By June 2009, the category communities, including Sacramento, West Sacramento, Politics and Government alone had 2,228 topics, while Vacaville, Winters, and Yuba-Sutter. Newspapers not the most popular category--"Just Ask" designed for only provide a tremendous amount of knowledge that requesting information or posing a question for Monroe could be captured, modified, and made searchable in a County residents--had over 3,000 topics. wiki format, but also provide important connections to Help residents find/choose things to do: This includes local experts whose knowledge would be invaluable for everything from entertainment, to classes, to TV large number of local residents. listings, to what to do with the kids. Again, much of This is only a partial list of what could be dozens of key the sites that have been developed in this area serve local information and knowledge needs that residents niche markets. www.209vibe.com, for example, is have. There are similar lists of information, knowledge a guide and networking site to the music scene in and connection needs that local businesses have as well, Stockton, California, developed by a beat reporter at that the Newspaper Next project helped articulate, the Stockton Record. www.BandsOfTheBay.com is a including: similar site developed by employees of the BANG-EB Help businesses reach exactly the type of customer they newspapers in Contra Costa and Alameda counties, need to reach: Traditional newspaper print advertising in the San Francisco Bay Area. Both sites provide is not an efficient way of reaching specific customer information on local clubs, space for local bands to post niches, since it is simply a mass marketing approach. But new audio and video releases, reviews, events calendars an “information and connection utility” with multiple and more. They have become vibrant networking sites, community interfaces, connection points, and services as well as important entertainment resources. There is (along with potentially information on browsing and no clear sign on either website of its newspaper parent posting behavior) can provide more niche marketing ownership, thus giving both sites an independent and solutions. authentically local feel. Many newspapers have developed more comprehensive guides to local activities. The York Help businesses be considered when customers are about to Region Media Group in Ontario Canada developed make a choice: www.kudzu.com and similar listing and rating sites provide this service.

32 According to U.S. Census. Help businesses show people the quality of their product/ Next Generation Unionism and the Future of Newspapers • 25 service: This could include photo and video feeds in a much valuable product in the new knowledge economy.33 more effective way than simply print advertising. He goes on to suggest the key role is not simply providing Help businesses build and maintain customer loyalty, and a platform for this information sharing, but providing further monetize their customer list: Businesses are always some value-added perspectives on this local information— looking for ways to strengthen relationships with past and curating the information: existing customers, through loyalty programs, member I am confident that the next big thing on the rewards and targeted coupons. Few small businesses have Internet — Web 3.0 if you like — will be a layer the resources to develop this in any substantial way, as the of professionally curated information sitting on larger companies do. Local information and connection top of the amateur Web 2.0 layer. Rather than utilities could develop these services, through sophisticated slithering into the democratic swamp of crowd- and targeted email advertising and web-design expertise, to generated content, smart local publishers should help meet this need. focus on their core expertise — the organization The Newspaper Next report discusses other key business and curation of information by professionals. To do needs such as helping: this, they should emulate Web businesses, like the

 make advertising simple and cheap enough for search-engine Mahalo, that are using social media small businesses, who often don't have substantial tools to organize user-generated-content while advertising capacities, to actually do it effectively, continuing to employ professional curators. thus helping businesses with customer transactions Entrepreneurial Reporting (imagine the amazon.com of the local economy) Detailed local knowledge, including tacit knowledge  businesses use the Internet effectively to grow about the cultural preferences and subtle information and  local businesses address a range of administrative knowledge practices of local residents, cannot be held headaches, including HR issues, governmental effectively only by newspaper management. It is the kind of regulations and facility maintenance. information that journalists, as well as sales representatives, Again, these are only a small example of the possible gain during the day to day activities of their jobs. What is types of activities. What makes these business models important for the transformation of the newspaper industry compelling is that their focus in on the kinds of detailed is that these front-line workers be given the entrepreneurial local knowledge that is very hard for a large national or training they need to recognize and take advantage of these global company, such as Google, to meet effectively. As opportunities, and the authority to implement them. Andrew Keen, Author of The Cult of the Amateur argued in One positive example of how this might work in practice a NYTimes sponsored on-line forum: comes from the case of 209Vibe we mentioned above, We generally go online to get local information a web-site and for a period of time a newspaper insert, — directions to stores, telephone numbers and developed in association with the Stockton Record newspaper. addresses of local merchants, restaurant reviews, The web-site is aimed at young adult music fans. It was local political news, the weather, the buying and developed by Ian Hill, the entertainment beat reporter for selling of goods, even local social networking. Local the Record. Hill first pitched the idea in 2005, and later information, therefore, is potentially the most went on to become 209vibe editor. When the print version

33 http://roomfordebate.blogs.nytimes.com/2009/02/10/battle-plans-for- newspapers/ 26 • Next Generation Unionism and the Future of Newspapers was discontinued, he became a web-content producer as if it was an organic, separate local startup. At its peak it for the Record’s regular web-site recordnet.com, as well as had fourteen staff, including ten in the newsroom, a print 209vibe.com. In launching 209vibe, Hill helped coordinate circulation of 88,000 readers, and a return on investment both an internal cross-departmental project team, and an (ROI) margin of between 15 and 20 percent in each of its external ‘street team’ of volunteers for the project. Together first three years. By 2008, however, with Gannett facing they developed products and markets for the web-site severe budget problems and severe cost control pressures and initially for the related print version, which was later and Rochester Insiders ROI dipping to 14%, the publisher discontinued. He was thus clearly given the authority to cut back and folded the operation back into its mainstream develop and launch what has become a dynamic multi- newspaper. Former Rochester Insider Editor and General media entertainment site highlighting the growing music Manager Mike Johansson says this change largely killed scene in the Stockton/Modesto area. innovation, arguing that the rigid cost control protocols

The BandsOfTheBay.com web-site is another example. have limited Gannett’s willingness to take chances, an 34 This site was developed by staff in the Bay Area News essential element of successful innovation. Group-East Bay (BANG-EB) papers. It has no branding Unfortunately, because of the hierarchical, top-down link to BANG-EB at all. It is an interactive web-site nature of newspapers, there are many more stories of in which musicians and bands can create profiles and management either ignoring or not sufficiently supporting upload songs, venues and clubs can also create profiles and innovative ideas from journalists and advertising staff publicize concerts and events, and fans can write reviews, members. One example that emerged in our interviews blogs, and rate different venues and bands. The site has involved Karl Fischer, a crime reporter with the Contra become a dynamic place to discover and track new music Costa Times. After a running conversation with Richmond amongst Bay Area bands. An editor for the Bay Area News police chief Chris Magnus about the value of organizational Group who helped develop the idea, Kari Hulac, was given transparency, he offered to provide a couple of services time away from her other responsibilities to develop it, and through the newspaper that Fischer judged highly to help sell advertising and sponsorship on the site, a new marketable to their online readership. Magnus offered a set of responsibilities for her, and an example of cross- continuous, mappable stream of crime data, updated daily, function cooperation. which the paper could offer on its website in list or map

While neither 209vibe.com nor BandsOfTheBay. form. He also offered to write a regular question-and- com have been large-scale revenue generators, this is not answer column for the website, driven by questions sent by atypical of many new internet ventures. Success on the readers. internet requires significant amount of experimentation, Magnus’ ideas fit neatly with some of Fischer's ideas and newspapers need to work with their reporters to to develop an online platform for crime and community develop such new ideas. But even successful ventures reporting for Richmond’s diverse neighborhoods. Fischer face challenges in the contemporary climate. Rochester brought these ideas to Contra Costa Times management, Insider, for example, was a dynamic web-site and free and even once brokered a meeting at the police department weekly print publication developed in 2004 by the Gannet- involving Magnus and his tech people, the paper’s assistant owned Rochester (NY) Democrat and Chronicle newspaper managing editor and online director. But Fischer says the to specifically target the 21-32 year old market. With response to this offer was lukewarm at best. “The newspaper extensive customer research, the site/print publication developed youth-customized entertainment and news 34 Based in interview with Mike Johansson, former Editor/General Manager of Rochester Insider and Founder of social media strategy features. It operated as a separate business unit and was run company Fixitology. Next Generation Unionism and the Future of Newspapers • 27 folk basically said we were not quite ready yet to consider Hybrid Ownership it, but we thought it was interesting and we would get back The increased revenue that could flow from these network to them. That was several years ago. They still haven’t gotten enterprise models are potentially quite substantial. But back, despite once-regular prodding from me,” he said. it is unlikely to fully replace the revenue lost from the The only way for papers to realize the potential suggested by decline in traditional print advertising. Furthermore, many the 209Vibe, Bands of Bay and Newspaper Next examples of the revenue streams identified in the Newspaper Next is to have an entrepreneurial staff with the authority to initiative take newspaper companies quite far from the experiment and capitalize on their proprietary knowledge centrally important functions of reporting on the daily and relationships. These staff may need substantial news and providing an independent voice on current events, entrepreneurial training, to help them identify market much less a substantial investigative journalism capability. opportunities. But the organizational structure also has to Newspapers have served an important ‘fourth estate’ role in shift to empower front-line workers to develop these ideas. society, providing some level of accountability to business Imagine, for example, if Google was in charge of employing and public leaders—accountability that is absolutely critical journalists and advertising salespeople. Google empowers to the functioning of a vibrant democracy. their engineers to devote 20% of their time to work on Newspaper consumers have gotten quite used to receiving projects of their own choosing, constantly looking for new this benefit without having to pay most of the cost of innovations that can translate into products and services to maintaining the personnel and infrastructure required to expand their market. As part of their recruitment material, sustain an independent media. Newspapers have always Peter Weinberger, a software engineer says: embodied a dual character. On the one hand, they are a “At a lot of places, you’re pretty much just told what business, with all the imperatives of selling a product for to do. At Google, there is a lot of figuring out an adequate revenue stream, and operating profitably. But what part of the problem you’re going to work on on the other hand, they have embraced the public role they yourself and doing it.”35 play as an important independent voice in our democracy.

Admittedly, the pace of work at Google is often so high That public function, however, has been maintained that some employees report having little time for anything primarily through the professionalism of journalists, and the beyond their core responsibilities. Nonetheless, the maintenance of the ‘firewall’ between news reporting and commitment to ‘20-percent time’ is written in company advertising. As newspaper companies have become more documents and recruiting materials, and the central point financially threatened, the business considerations have remains that it is more about a culture of innovation, than a largely dominated over concerns about the public function. strict accounting of hours worked. The result is one of the In order to preserve that independent investigative most innovative companies in history. journalism component of newspapers, some form of ownership of news that reflects that public good is likely to Newspapers that survive and thrive will have to have emerge (Hamilton 2009). structures that promote and support this kind of continuous innovation, with front-line workers taking on much of the Revenue for preserving such a public function can come responsibilities for identifying and developing these new from at least two major sources. Some number of individual business opportunities. consumers would likely to be willing to pay a higher amount, though donations or a membership structure, for good daily news. This would be similar to the National Public Radio model, where all consumers are encouraged 35 http://www.google.com/intl/en/jobs/lifeatgoogle/englife.html 28 • Next Generation Unionism and the Future of Newspapers to support the individual stations, though only a minority a story generated through Spot.Us, the donations are of listeners actually contribute. A second source of funding returned. Recent stories funded through this mechanism could come from foundations and business donations, include: “Costs and Benefits of using Twitter for public either to support particular reporting projects, or as general service”37, “High Speed Rails Funding Puzzle”38 and “The operational support. Return of Hooverville: Car and Tent Cities on the Rise in 39 There are a number of intriguing models already being San Francisco” developed along these lines. The Public Press is a non- A more substantial non-profit model which has been profit organization based in the San Francisco Bay Area, running for many years is the Poynter Institute, a non-profit that is developing a non-commercial daily news service, teaching and research institute which also owns Times ideally combining web, print, and broadcast media. As Publishing Company, the publisher of the St. Petersburg a social venture, it aims to sustain itself through mixing Times. The Poynter Institute was founded in 1975, and philanthropy (from foundations and individuals) along has developed into one of the country’s premier journalism with subscription revenue and newsstand sales. Without training schools. Owned by this non-profit entity, without advertising, they estimate that for the print version of their the profit pressures of a public company, theSt. Petersburg news they would use half the newsprint of traditional Times has continued to provide award winning investigative daily papers. But the organization would run based on journalism and avoided avoided the worst of the job cuts an interactive model, combining web and mobile delivery that have plagued the newspaper industry. platforms. The content would include originally generated One of the most comprehensive proposals for integrating stories, as well as culling significant reader comments and the business function and public good function of appropriate blogs. To date, given the lower costs of web newspapers is being pursued by the Newspaper Guild union broadcast, they have only developed a web-based news local in Peoria, Illinois. Here, union leaders and community source. Readership is still small, with 5,500 site visits in July stakeholders are exploring creating a hybrid structure, that 2009, but growth trends are upwards, and their plan is to would incorporate elements of a business, an employee 36 launch a print version in 2010. stock ownership plan, and a non-profit structure. Another Spot.Us provides a platform for journalists to seek option they are pursuing is to use what is called an L3C public funding for their articles and an opportunity for corporation (low-profit, limited liability company), which individuals and institutions to commission journalists to are designed as socially beneficially enterprises, and are write investigative and other types of stories about topics structured in such as way to attract both private investment of community importance that might be overlooked by and philanthropic capital.40 mainstream media sources with declining newsgathering Whatever the specific form, it is clear that new forms resources. It is a San Francisco Bay Area-based non-profit of ownership that combine more reader contributions project of the Center for Media Change, with financial for quality journalism and create channels for non-profit support from a variety of sources, including the Knight donations are likely to become more common in the Foundation. The Spot.Us goal is to ‘pioneer community newspaper industry.41 funded reporting’. Donations to support these independent reporters are tax-deductible, and stories that are reported 37 http://www.spot.us/stories/205 in this way are open to all through a Creative Commons 38 http://www.spot.us/stories/150 39 http://www.spot.us/stories/44 license. If a news organization buys exclusive rights to 40 See: http://www.communitywealth.com/Newsletter/August%202007/ L3C.html 41 See http://www.pubpol.duke.edu/nonprofitmedia/ for a range of reports related to a conference on models for non-profit media held at Duke 36 http://www.public-press.org University in May 2009. Next Generation Unionism and the Future of Newspapers • 29

V n Next Generatio n Unionism i the Newspaper Extra! Extra! Industry hat role should a union play in this transformed long-term stable employment with one employer, this media world? If networked enterprises, model focuses worker representation around collective Wentrepreneurial reporting and hybrid ownership bargaining based on individual work sites or with single structures are important components of a future employers. This structure of representation worked fairly journalism industry, is there a place for unions to be well in large manufacturing industries, where a majority more than simply remnants of an older, mass-production of workers were organized. Pattern bargaining amongst model of newspapers? Certainly unions can continue unionized firms, along with efforts of non-union firms to play an important role in trying to protect the wages to match union compensation packages (partly in order and working conditions of employees in the industry, but to avoid unionization), meant that in practice workers focusing on this strategy alone is likely to produce only were often represented similarly across whole industries. limited benefits to a continually shrinking membership. Stable markets in mass-production enterprises, and well- For the union to provide significant contributions developed internal labor markets that existed in many moving forward, it must develop significant new firms, provided a solid support for union structures. initiatives in a number of areas and create new models As the economy has changed, however, with more for the role unions can play, not just in the lives of their service-sector employment and higher levels of volatility, members, but in supporting economic growth, industrial uncertainty, complex networking and out-sourcing transformation, and societal development more broadly. production arrangements, representation that is based Next Generation Unionism on a single worksite or single employer has proven increasingly inadequate for defending workers’ interests. Unions have a long history, but the dominant form For workers who move frequently from employer of unionism has changed over time. Prior to the 1920s, to employer, or whose working conditions are not craft unions and less formal, community-based unions primarily determined by a single employer (such as played the greatest role in representing workers’ interests. temporary workers, and many workers in sub-contracting Craft-based unions in many occupations were able relationships), there are few opportunities in the current to set standards of fair pay rates that their members industrial relations system for adequate representation. then individually demanded from their employers. As a result, unions now represent less than 8% of the Community-based unions, such as the Knights of Labor private-sector workforce.43 and the IWW, had a broad social-movement character, In recent years, however, the union movement has been building on community solidarity to defend workers 42 experimenting with a range of innovations that extend interests across a broad spectrum of industries. beyond bargaining over wages and working conditions in Since the 1930s, however, industrial unionism has a single enterprise, to becoming involved in issues of labor become the dominant form of unionism in this country. supply, labor quality, placement and career advancement. This model emerged out of the organizing strategies of The initiatives include alliances with employers, the Congress of Industrial Organizations in the 1920s community groups, as well as other unions. They can and 1930s, and became embodied in labor legislation focus on strengthening internal career ladders, as well as with the 1935 Wagner Act. Based on a model of creating new external career ladders within an industry and across industries, expanding labor involvement in job 42 See Craver, Charles. 1993. Can Unions Survive?: The Rejuvenation of the American Labor Movement. New York: New York University PressMontgomery, David. 1987. The Fall of the House of Labor: The Workplace, the State, and American Labor Activism, 1865-1925. 43 See: www.unionstats.com and http://www.bls.gov/news.release/union2. Cambridge: Cambridge University Press. toc.htm Next Generation Unionism and the Future of Newspapers • 31 matching as well as the design and delivery of training.44 thought of as focusing in four broadly related areas:

In many ways these initiatives are similar to the structure Community and association membership: like of unions in construction trades, where hiring halls and occupationally based guilds or professional associations, apprenticeship training programs have been common next generation unions can build organizational structures for many years. In industries where ‘project-based’ that are not dependent on representation in a single employment is the norm, such as in the television and work-site or company, but in which membership is based movie production industry, an active intermediary role on other forms of community membership. This helps 45 for unions is accepted practice. The fact that these provide stability and a sense of belonging for members, initiatives are emerging in other industries, however, even when they move from work-site to work-site. It also indicates the growing recognition amongst unions that provides an organizational base for advocating for a range standard industrial-model unionism is no longer adequate of non-workplace based issues of importance to workers for addressing the labor market concerns of a wide range and their families, such as health care, affordable housing of the American workforce. This has lead to increased and decent transportation. interest in models of occupation-based associations as Career mobility: promoting improved career potential alternatives. opportunities, through assessment, training and Such initiatives recognize implicitly that there are a placement services and improve social networking wide range of factors, beyond simply the relationship opportunities between employer and employee, that shape the quality Public accountability: unions have increased engagement of work and economic opportunities available to workers. in a range of new strategies aimed at influencing public Such factors can be divided into the following four sector programs, not just at a federal level. Promoting categories: community benefit agreements, influencing the strategies  Dynamics of cooperation and competition amongst and spending of workforce training funding, engaging firms in debates about location of affordable housing, are just  Dynamics of cooperation and competition amongst a few examples of ways unions have been exploring new workers outside the workplace strategies around influencing sector funding.

 Government regulation, infrastructure and Engaging competitive strategies: in the industrial union enforcement model, business decisions and competitive strategies

 Labor market intermediaries, and other systems by were left to management and unions simply focused on which workers move from job to job, and employers find bargaining over wages and working conditions. New workers to fill jobs models require unions to play a much more active role in promoting economic development, and developing In addressing these four broad sets of forces shaping new economic strategies that both build on the human the labor process, ‘next generation unionism’ can be capital and innovative capacities of their membership, and

44 See Laura Dresser and Joel Rogers, “Rebuilding Job Access and Career provide improved economic opportunities. Advancement Systems in the New Economy,” (Madison: Center on Wisconsin Strategy, University of Wisconsin, 1997), Stephen Herzenberg, John Alic, and Howard Wial, New Rules for a New Economy: Employment and Opportunity in Postindustrial America (Ithaca: ILR Press, 1998), Eric Parker and Joel Rogers, “Building the High Road in Metro Next Generation Newspaper Guild? Areas: Sectoral Training and Employment Projects,” in Rekindling the Movement: Labor’s Quest for Relevance in the 21st Century, ed. Lowell As once-venerable U. S. newspapers continue to Turner, Harry Katz, and Richard Hurd (Ithaca: ILR Press, 2001). 45 Gray, Lois and Ronald Seeber. 1996. “Under the Stars: Essays on Labor collapse at an alarming rate, The Newspaper Guild – Relations in Arts and Entertainment.” Ithaca: ILR Press. 32 • Next Generation Unionism and the Future of Newspapers Communications Workers of America is faced with for many of the seismic newspaper industry changes – a life-or-death challenge as well as underappreciated represents workers at the San Francisco Chronicle, San Jose opportunities. If many sectors of the industry are Mercury News, the Contra Costa Times, Oakland Tribune imploding, is the Guild destined to meet the same fate or and other MediaNews East Bay papers. Outside the can it branch out and organize workers in growing sectors immediate Bay Area it has members at The McClatchy of the economy? In a world in which the economy, Co.-owned Sacramento, Modesto and Fresno Bees, the news content delivery industry and general work the Santa Rosa Press Democrat and the Monterey County organization are more fragmented and temporal, is there Herald. All have faced serious economic crises, and job an even greater need for a well-resourced organization to loss in recent years. knit workers together and be their connective tissue? In What would a next generation union model look like in short: what is the union’s value proposition in a rapidly the journalism industry, in the context of this economic changing world? crisis? The California Media Workers Guild has already With the growth of specialized websites with an begun developing innovative and exciting elements of a increasing appetite for trustworthy news content, can the new model. The elements of these efforts are shown in union add value to new media efforts with its proprietary Figure 8. connections to workers who are experienced, battle-tested, Formed in 2009 from a merger of the Northern well-sourced, credible, ethical, well-trained and flexible? California Media Workers and the San Jose Newspaper The California Media Workers Guild is one union Guild, the CMW has launched a series of next local that is working to answer these questions. This San generation initiatives to provide immediate support for Francisco-based union local – which is at ground zero dislocated workers and to build structures to help workers figure 8

Next Generation Unionism and the Future of Newspapers • 33 successfully navigate a new world filled with more blogs career networking opportunities. Through this shared and specialized websites and fewer regular full-time knowledge and experience borne from frequent job newspaper jobs. searches, Bio2Device Group members have learned how

For the Guild, part of the change agenda challenge to separate their personal skills, attributes and knowledge involves the extent to which the union can develop a from individual jobs or careers and to continually greater sense of agency. The Guild has a choice. It can repackage themselves to address the needs of a variety bemoan the fate of the industry and its workers and of employers. Such skills have enabled scientists from angrily seek scapegoats. Or it can take responsibility for biotechnology backgrounds, for example, to favorably the future by seeking to understand economic changes market their core competencies to pharmaceutical and work with community partners and sympathetic industry employers. employers to help create a brighter future for workers and Thanks to this next generation research and a refreshing all current newspaper industry stakeholders. surge of innovative leadership from a group of newly

Similarly union members face major challenges in organized East Bay newspaper workers, the Guild has adapting to the new world of media. Many are long-term begun to expand its mission to include an institutional employees who have had stable jobs and have grown up home – as associate members -- for dislocated workers, in a structured and hierarchical work world where they bloggers and freelancers. have never had to market their own work. They only As the union has maintained connection with former know their own jobs and aren’t aware of the business newspaper workers, it has discovered that they have considerations involved in producing a financially skills, attributes and knowledge that are in-demand viable product. Freelance employees were often seen as for employers in a variety of industries. According the “enemy” who threatened the stability of full-time to a survey of San Francisco Bay Area ex-newspaper employment. employees, more than 50% continue to work in the

While contemplating union transforming strategies, media industry somewhere. A few former employees Guild leaders studied examples from groups of Silicon moved to other newspapers, including the San Jose Valley voluntary employee associations which have Business Journal, Silicon Valley Community Newspapers, formed to provide networking, professional development and even the Dallas Morning News and the South and other resources for a regional membership dispersed Florida Sun-Sentinal. But many moved to other types across multiple employers in often multiple industry of media outlets, including CNET (premier source of sectors. tech product reviews, news, podcasts and daily videos), Fortune Magazine, AGI Publishing, allbusiness.com The Bio2Device Group, for example, was formed to (an information source for entrepreneurs and small represent the needs of engineers, scientists and other businesses), Congressional Quarterly, and thestreet. life sciences industries workers in the biotechnology, com (a business news source), while others continue to medical, device, diagnostics and pharmaceutical fields. do freelance journalism work (see Figure 9). Others The group has received ongoing support from NOVA, have moved to public relations positions in a variety the Sunnyvale-based workforce investment board which of different industries, most commonly in education, has also been a Rapid Response partner of the Guild which seems to be a common path for former newspaper in San Jose. Weekly meetings featuring prominent workers, with over 25% of former newspaper workers industry and academic guest speakers attract Bio2Device now employed in the education industry. Group members seeking industry knowledge as well as

34 • Next Generation Unionism and the Future of Newspapers figure 9

Clearly, newspaper employees who continue to work workers performing assignments on a project-to- in the media industry have skill sets that continue to project basis. Unit leaders are working to answer be valuable to their new employers. Our survey also this key organizing question: Why would a indicates, however, that many of the skill sets that 23-year old blogger want to be a union member? newspapers employees use on the job are also highly The unit’s mission is to provide these workers transferable to new employment settings. Figure 10 with: shows survey respondents’ ratings of different skill o Branding around Guild attributes of requirements in their new job and in their old newspaper professionalism, subject knowledge, job. Clearly many skills, such as effective communication accuracy and ethics. skills, juggling multiple assignments, quick thinking and o Credentialing. resourcefulness, and creative thinking, are highly valuable skills in multiple work environments. This skill similarity o Marketing of their work. provides a potential connection for linking current and o Access to benefits like health insurance, former employees. which were most frequently available

Spurred in part by partnerships with Professor Benner only through regular newspaper and the UC-Davis Center for Regional Change and the employment. California Labor Federation’s Workforce and Economic o A forum for researching and establishing Development program, the CMW has launched the standards. following initiatives: o A positive can-do environment  A freelance unit was formed in 2009 to represent promoting inspiration, hope and the interests of a growing number of media perseverance.

Next Generation Unionism and the Future of Newspapers • 35 figure 10

o Freelance administrative infrastructure job openings, training opportunities and job- support, including access to accounting hunting strategies. Motivated by the goal of and other business resources. creating a large, diverse and strategic network,

o Career and social networking. the Guild opened membership to current and former union-members as well as non-union o Career assessment and advising supervisors. The site allows participants to assistance. expand their individual networks and increase o Access to free or subsidized multi-media their opportunities for staying connected to the and entrepreneurial training. ever-shifting economic mainstream. The site o Access to jobs through the union’s also gives union leaders an invaluable research unique networks and relationships with tool for following the career paths of former government and other sources. newspaper workers and developing appropriate

o Connections with employers seeking support programs to meet real-time economic quality workers. and workforce challenges and opportunities.  o Opportunities for transition coaching. Plan B mentoring. These workshops bring together panels of former newspaper workers  The Bay Area Newspaper Workers Network on who share encouragement and job-seeking tips Linkedin. This union-initiative provides about with current workers contemplating new jobs 400 current and former regional newspaper and new careers. Workshop panelists have workers with thousands of career contacts as encouraged participants to reframe their skills, well as forums for sharing information about

36 • Next Generation Unionism and the Future of Newspapers attributes and knowledge in broad terms in order  Rapid Response and other community networks. to make them more marketable to a broader The union has formed partnerships with Bay array of future employers. These sessions are Area Workforce Investment Boards to provide particularly valuable for multi-decade newspaper access to job-seeker resources for newly laid- workers with rusty job resume and interviewing off workers. Through these relationships, the skills. newspaper worker partnerships have helped to

 Bay Area Media Training Consortium augment the general workforce system by making (BAMTC). The Guild is a partner in this it more effective for newspaper workers. innovative initiative to provide free multi-  Skilled Worker Assistance Team (SWAT) media and entrepreneurial training to at least The Bay Area Video Coalition, a BAMTC 700 dislocated and incumbent newspaper, partner, has won a competitive City of San broadcast and other media workers. Other Francisco grant to use American Recovery and participants include the Bay Area Video Reinvestment Act (ARRA or Stimulus) resources Coalition, the NOVA workforce board, the to assist dislocated workers with focused career University of California, Berkeley Graduate networking and assessment services as well as School of Journalism, Cisco Systems, Linkedin. access to training opportunities and so-called com, Professor Benner, the California Labor wrap-around services such as health care and Federation, Working Partnerships USA, The housing support. The SWAT is an adjunct to the SF Chronicle and Spot.us, the emerging San Francisco One-Stop career center network new media company combining community- and will form the foundation for the next funded journalism with a capacity to organize generation California Media Workers.

online communities of readers and advertisers.  Storytelling project related to American Leveraging its networks and unique relationships, Recovery and Reinvestment Act (Stimulus the Guild is working to recruit and engage legislation) and Green economy initiatives. training participants. The consortium is currently Focusing on the federal government’s goals of seeking funding from state and federal workforce transparency and sustainability, the Guild is sources. working with Luther Jackson to promote the  Bay Area News Project. The Guild is working creation of regional websites to promote and with San Francisco financier Warren Hellman, document these historic efforts. Journalists KQED Public Media and the University will employ storytelling skills to demonstrate of California, Berkeley Graduate School the extent to which Stimulus programs help of Journalism to create a non-profit news transform individuals and communities. There organization “to provide high-quality , original will also be opportunities for journalists to use coverage of Bay Area civic and community investigative skills to help improve program news.” Union leaders are seeking to connect the effectiveness. new media needs of this initiative with training resources available through the BAMTC.

Next Generation Unionism and the Future of Newspapers • 37

VI n Conclusio

Extra! Extra! colleagues, it is clear that there is a widespread and deep “As long as there is a story to be told, an sense of urgency about the challenges facing newspapers. injustice to be exposed, a mystery to be This passion is part of what gives us confidence in solved, we will find a way to do it. A concluding that daily journalism is far from dead. Over the next ten years, the medium of delivery may recession won’t stop us. A dying industry increasingly shift away from paper to various forms of won’t stop us. Even poverty won’t stop digital media. Indeed Apple's introduction of the iTablet, us because we are all on a mission here. a new paper sized e-reader, is already raising the prospect That’s the meaning of your journalism that the day of the common no-paper newspaper may degree. Do not consider it a certificate be closer than anticipated.47 But whatever the media, promising some sort of entitlement. the passion of the producers and consumers of daily Consider it a license to fight. In the ‘70s, journalism means that some form of the industry will it was gonzo journalism. For us right survive and indeed likely thrive in coming years. now, it’s guerrilla journalism, and we There is no guarantee that newspaper unions will will not be stopped.” 46 have a substantial role in that future. History is ripe with examples of worker organizations that have failed to survive economic and technological restructuring. he quote above comes from Barbara Ehrenreich’s Yet there is also no reason to assume that unions can’t May 16, 2009 commencement address to graduates be as flexible and adaptive as any other organizational Tof the UC Berkeley Graduate School of Journalism. form. Indeed the long history of different forms of It captures an important element of people involved in worker organizing demonstrates substantial variety of the newspaper industry—it is not just a job, it is a calling. organizational forms and activities, including many Journalists care about the quality of their work and are in occupations at the heart of the new informational driven by the recognition of importance of what they do economy (Benner 2003). to sustaining a vibrant democracy. This passion for the The model of next generation unions we’ve sketched in work is reflected in expanding enrollments in the nation’s this report is just that—a sketch. The specific structures more than 400 journalism programs, which have averaged and activities will be developed through the creativity, more than 4% growth a year for the last decade (Becker commitment and caring of the dedicated leaders of et al. 2007). California Media Workers union, and their colleagues in The passion for newspapers is not limited to those the newspaper industry around the country. If this report employed in the industry. In the course on conducting has helped provide some insights to help support these the research for this report, we have been struck by the efforts, and helped convince other industry stakeholders strength of concern expressed about the decline and that unions have a potentially important role to play potential death of newspaper. In our interviews with in the future of journalism, than it will have served its community stakeholders, in feedback we’ve received purpose. from presentations of preliminary findings to a range of audiences, and in casual conversations with friends and

47 See: http://www.pcworld.com/article/169476/apple_tablet_prototype_ is_real_nov_launch_expected_says_report.html?tk=rel_news 46 http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/31/ & http://www.newsweek.com/id/157580 ING317S025.DTL Next Generation Unionism and the Future of Newspapers • 39 References:

Batt, Rosemary, Susan Christopherson, Ned Rightor and Gray, Lois and Ronald Seeber. 1996. “Under the Stars: Essays Danielle Van Jaarsveld. 2001. “NetWorking: Work Patterns on Labor Relations in Arts and Entertainment.” Ithaca: ILR and Workforce Policies for the New Media Industries.” Press. Washington, DC: Economic Policy Institute. Hamilton, James T. 2009. “The Road Ahead for Media Becker, Lee, Tudor Vlad, Megan Vogel, Donna Wilcox and Hybrids: Report of the Duke Nonprofit Media Conference, Stephanie Hanisak. 2007. “Enrollments Increase, with Slightly May 4-5th 2009.” Durham, NC: Duke University, Sanford Higher Percentages of Male Students.” Journalism & Mass School of Public Policy. Communication Educator 63:198-223. Layton, Charles. 2006. “Surrounded by Singleton.” American Benner, Chris. 2003. “’Computers in the Wild’: Guilds and Journalism Review. Next Generation Unionism in the Information Revolution.” International Review of Social History 48. Meyer, Philip. 2004. The Vanishing Newspaper: Saving Journalism in the Information Age. Columbia, MO: University of Bresnahan, Timothy F., Erik Brynjolfsson and Lorin Hitt. Missouri Press. 2002. “Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm level Evidence.” Quarterly Milgrom, P. and J. Roberts. 1990. “The Economics of Modern Journal of Economics 117:339-376. Manufacturing: Technology, Strategy and Organization.” American Economic Review 80:511-28. Brynjolfsson, E. 2005. “Seven Pillars of Productivity.” Optimize: Ideas, Action, Results. Montgomery, David. 1987. The Fall of the House of Labor: The Workplace, the State, and American Labor Activism, 1865-1925. Brynjolfsson, Erik and Lorin Hitt. 2000. “Beyond Cambridge: Cambridge University Press. Computation: Information Technology, Organizational Transformation and Business Performance.” Journal of Economic O’Riain, Sean. 2007. The Politics of High Tech Growth: Perspectives 14:23-48. Developmental Network States in the Global Economy. Cambridge, UK: Cambridge University Press. Castells, Manuel. 1996. The Rise of the Network Society. Cambridge, Mass.: Blackwell Publishers. Oliner, Stephen D. and Daniel J. Sichel. 2000. “The Resurgence of Growth in the Late 1990’s: Is Information Craver, Charles. 1993. Can Unions Survive?: The Rejuvenation Technology the Story?” Journal of Economic Perspectives 14:3-22. of the American Labor Movement. New York: New York University Press. Sassen, Saskia. 2002. “Global Networks, Linked Cities.” London: Routledge. Ghose, Anindya, Michael D. Smith and Rahul Telang. 2005. “Internet Exchanges for Used Books: An Empirical Analysis Saxenian, AnnaLee. 1994. Regional Advantage: Culture and of Product Cannibalization and Welfare Impact.” Available at: Competition in Silicon Valley and Route 128. Cambridge, Mass.: http://ssrn.com/abstract=584401. Harvard University Press.

Graham, Stephen and Simon Marvin. 2001. Splintering Sturgeon, Tim. 2002. “Modular Production Networks: A New Urbanism: Networked Infrastructures, Technological Mobilities American Model of Industrial Organization.” Industrial and and the Urban Condition. London: Routledge. Corporate Change 11:451-496.

Gray et al, Stephen T. . 2008. “Newspaper Next 2.0: Making the Leap Beyond ‘Newspapers Companies’.” Reston, VA: American Press Institute.

40 • Next Generation Unionism and the Future of Newspapers Interviews

In-Depth Individual Interviews Organizations listed for identification purposes only

Mitchell Benson Donna Lovell UC Davis Communications Director Former San Jose Mercury News Online Editor (now Sr. Web Content Producer at Stanford University)

Andrea Buffa UC Berkeley Labor Center Ben Mundy Former Sacramento Bee Sales Account Manager (now advertising consultant, Sacramento News & Review) Jerry Ceppos Dean, University of Nevada, Reno Reynolds School of Journalism Tom Negrete SacBee Managing Online Editor

David Cohn Founder, Spot.us Chris O'Brien Rethinking the Mercury News Project

Marcus Courtney San Jose Mercury News Former president, Washtech Larry Olmstead

Louis Freedberg President, Leading Edge Associates Director, Califonia Watch (Center for Investigative Reporting) Hal Plotkin Founding Editor, ReelChanges.org (now senior policy advisor Rob Gunnison in the U. S. Department of Education) UC Berkeley, Graduate School of Journalism Rani Ranjan

Carl Hall Silicon Valley Software Developer California Media Workers Guild/Communications Workers of America Calvin Siemer San Francisco Chronicle, Vice President, Legal Affairs Patty Hannon San Jose Mercury News Web Editor Michael Stoll S/B Project Director, SF Public Press Mike Johansson Former Editor/General Manager, Rochester Insider Walt Yost Former reporter, Sacramento Bee

Next Generation Unionism and the Future of Newspapers • 41 Current Newspaper Employees Focus Group

Elise Ackerman Former reporter, San Jose Mercury News

Karim Amara Multi-media specialist, Bay Area News Group-East Bay

Robin Evans Former reporter and editor, San Jose Mercury News

Lisa Fernandez Reporter, San Jose Mercury News

George Kelly Multi-media specialist, BANG-EB

Karl Mondon Multi-media specialist and photojournalist, BANG-EB

Cali Pettiford Advertising specialist, San Jose Mercury News

Dennis Uyeno

Retired advertising salesperson, San Jose Mercury News and former Guild unit chairperson

42 • Next Generation Unionism and the Future of Newspapers Former Newspaper Employees Focus Group

former position in the newspaper new position Sara Wykes Steve Bajkowski Newsroom Mercury News Retail advertising Mercury News Writer/editor, Stanford University Medical Center Sales and marketing professional Mike Myslinski Valerie Olesen Newsroom at Alameda Newspaper Group, Communications Classified advertising Mercury News at California Teachers Association Customer Service at Kaiser Lou Alexander

Leslie Fawns Classified advertising director Mercury News Classified advertising Mercury News Retired and blogging. Customer Service at Kaiser Mike Langberg

Jack Fischer Newsroom Mercury News Newsroom Mercury NewsCommunications Officer, Hewlett Sr. Corporate Communications Manager at Yahoo! Foundation Michael Bazeley Becky Bartindale Newsroom web expert Mercury News Newsroom Mercury News Editorial Director, Electronic Media at UC Berkeley Law Communications coordinator, Foothill-De Anza Community School College District

Mark Schwanhausser Newsroom Mercury News Research analyst, Javelin Strategy & Research

Next Generation Unionism and the Future of Newspapers • 43 San Jose Community Stakeholders Focus Group

Louie Rocha Diane Fisher Former president Executive Director Communications Workers of America Local 9423 Jewish Community Relations Council

Josue Garcia Poncho Guevara Deputy Executive Officer Executive Director Santa Clara & San Benito Counties Building and Sacred Heart Community Service and board member, NOVA Construction Trades Council Workforce Investment Board (Sunnyvale)

Steve Preminger Kathy Meier Working PartnershipsUSA and chair, Santa Clara County Attorney and former Managing Partner Democratic Party Hoge, Fenton, Jones & Appel

Rick Callender Stephen Wright Office of Government and Public Relations, Santa Clara Vice President, Strategic Communications at Silicon Valley Valley Water District and former president, San Jose NAACP Leadership Group and former editorial page editor, San Jose Mercury News. Bruce Davis Executive Director Rev. Rebecca Kuiken Arts Council Silicon Valley Director, The Interfaith Council

44 • Next Generation Unionism and the Future of Newspapers

Next Generation Unionism and the Future of Newspapers:

Networking, Entrepreneurship and Hybrid Ownership

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