The Globe is not losing $85 million

So says Poynter Institute business analyst Rick Edmonds.

In a revealing post — made all the more interesting following the Boston Newspaper Guild’s narrow defeat of a package designed to save the New York Times Co. about $10 million — Edmonds reports that Times Co. spokeswoman Catherine Mathis has clarified some of the murk. (Via David Folkenflik.)

Edmonds writes that the $85 million operating loss the Globe is said to be ringing up in 2009 actually “includes depreciation, amortization and special charges.” His best guess: the Globe is on track to lose about $20 million this year, and the concessions demanded by the Times Co. would roughly cover that.

Of course, following today’s Guild vote (the deal lost by a heart-stopping margin of 277-265) management only has $10 million in hand, in the form of concessions agreed to by unions other than the Guild. Management has threatened to impose a 23 percent pay cut, which the Guild, in turn, says it will appeal to the National Labor Relations Board.

It’s impossible to know what’s going to happen next, at least not tonight. But one thing that ought to be acknowledged is that the folks at 135 Morrissey Blvd. have continued to put out a very good newspaper despite months of uncertainty, even chaos, with respect to the Globe’s future. I’m sure that will continue.

Update: The Globe itself made some of the same points on April 24, though Edmonds’ main argument — that the paper’s true operating loss this year is likely to be $20 million — doesn’t quite emerge.

Differing takes on today’s Globe vote

Interesting difference in emphasis in the New York Times’ and the Boston Globe’s coverage of today’s vote by the Boston Newspaper Guild.

The Times story, by Richard Pérez-Peña, quotes three Globe employees, all reporters, all of whom say they’re voting “no” — Scott Allen, Brian Mooney and Beth Daley. The story also notes that Guild president Dan Totten’s less-than-enthusiastic public comments have been “widely interpreted as urging rejection.”

The Globe story, by Rob Gavin, works into the lede the news that the paper’s delivery-truck drivers approved $2.5 million in concessions on Sunday. Gavin, like Pérez-Peña, also quotes three reporters, but with a different emphasis — Mooney (no), Erin Ailworth (yes) and Scott Helman (maybe).

The picture you come away from in reading the Times is that the deal — which would cut pay by about 10 percent and eliminate 190 lifetime job guarantees — is all but certain to be rejected. The Globe, by contrast, makes you think things are truly up in the air.

The Guild concessions, if approved, would add up to about $10 million, half the $20 million that the New York Times Co. is demanding. If the Guild votes “no,” management has said it would impose a 23 percent pay cut, which the Guild, in turn, says it would appeal to the National Labor Relations Board.

Management has not ruled out shutting down the paper, although that threat seems to have diminished since it was first leveled more than a month ago.

We’ll know tonight.

Guilding tomorrow’s vote

On the eve of Monday’s vote by members of the Boston Newspaper Guild, the Guild has posted a press release on its “Save the Boston Globe” campaign.

In keeping with Guild president Dan Totten’s past comments, the union is not explicitly urging its members to vote one way or the other on the pact, which calls for a pay cut of roughly 10 percent and an end to lifetime job guarantees for about 190 Globe employees.

Twenty-four hours from now, we’ll know a lot more than we do today.

Kazakh government admits to blockage

The official Kazakh communications agency has admitted to blocking the blogging platform LiveJournal, according to the International Foundation of Speech Freedom Protection.

In a recent interview with the newspaper Express K, Batyr Makhanbetazhiev, executive secretary of Kazakhstan’s Agency of Information and Communication, said LiveJournal had been blocked to stop the “distribution of illegal information.”

The translation is hazy, so it’s a little hard to follow. But free-speech activists in Kazakhstan have been campaigning against a proposed law that would crack down on the country’s relatively free-wheeling online culture. For background, see this and also this.

Counting blogs: One, two, many

Four years ago, Jay Rosen dropped in on a media-criticism class I was teaching at Northeastern University for a discussion about blogging.

One point he made I thought was particularly salient: the 97 bazillion blogs Technorati claims to be tracking are often used by critics as a way to discredit blogging. After all, how could anything so common be of much value?

Still, it’s hard to quantify the number of blogs that matter to news folks — that is, blogs doing some type of journalism, even if it’s just commenting intelligently on the news. When asked, I generally respond that it’s certainly in the hundreds, or even the thousands, but definitely not the millions.

So I was interested to see more useful Technorati numbers appear in a New York Times story today about bloggers who quit because they quickly learn that it’s hard work, or that it’s no way to make money, or that they decide revealing personal details about themselves isn’t such a good idea. (Not that that has anything inherently to do with blogging.) To wit:

  • Of the 133 million blogs that Technorati was following in 2008, only 7.4 million had been updated in the past four months.
  • The vast majority of traffic is generated by 50,000 to 100,000 blogs.

Those numbers make far more sense, and show that blogging is something that a small subset of dedicated amateurs (and a few professionals) take seriously. As Rosen suggested, the Golden Arches approach is a way of marginalizing rather than elucidating.

Critiquing Obama’s speech in Egypt

They don’t come any dumber than U.S. Sen. James Inhofe, R-Okla. In a piece on local reaction to President Obama’s speech in Egypt, Inhofe tells his hometown newspaper, “There has never been a documented case of torture at Guantanamo” and “I just don’t know whose side he’s on.” (Via TPMDC.)

On the other hand, New York Times columnist David Brooks gets right to the heart of the contradictions in Obama’s speech, writing:

This speech builds an idealistic facade on a realist structure. And this gets to the core Obama foreign-policy perplexity. The president wants to be an inspiring leader who rallies the masses. He also wants be a top-down realist who cuts deals in the palaces. There is a tension between these two impulses that even a sharp Chicago pol is having trouble managing.

My own reaction: underwhelmed, despite the characteristically first-rate craftsmanship and delivery. I couldn’t really articulate why, but I definitely think Brooks is on to it.

Deval Patrick is shocked

Gov. Deval Patrick has discovered that there is — I hope you’re sitting down — offensive programming on WTKK Radio (96.9 FM), the station where he has been making monthly appearances since entering office more than two years ago.

Patrick, appearing on Jim Braude and Margery Eagan’s program, said he was “embarrassed to be associated with the station” after management decided to lift the month-long suspension it had handed out to Jay Severin for his vile comments about Mexicans. (Globe; Herald.)

But as I and many others have noted, Severin’s comments that day were entirely consistent with his rhetoric over the past decade. If his ratings hadn’t been sliding, it’s not likely he would have gotten into trouble.

Weirdly, Patrick had never expressed any misgivings about appearing on the station until Severin actually apologized. Governor, this may be the one moment when you don’t need to feel embarrassed — a moment that will last until the next time Severin goes off. Enjoy it.

Brian Mooney responds

Brian Mooney has e-mailed a response to the item I posted earlier today. I am publishing it here in full with his permission.

You’ve completely misrepresented the position of those of us who are arguing for a “no” vote and done it in a demeaning, insulting manner. We understand a lot better than you do the state of the newspaper industry in general and the Globe in particular. We have said repeatedly and publicly that we are willing to absorb our share of the cuts to help the paper through this period which we hope is a transition to a multi-media platform.

And I personally resent your ill-informed opinion about what the membership should do. You don’t know what you’re talking about and until you do, you should keep your mouth shut.

This is not some mindless, nihilistic, send-’em-a-message exercise. It’s a painful decision for everyone in the Guild. The best-case scenario is bad, and we all know it. The Times Co. will impose Wal-Mart-like employment conditions here if it can get away with it.

Because you do not seem to have a grasp of any actual facts, I’ll try to explain some to you.

The major issues are fairness and bad-faith bargaining.

Both of the company’s ultimatums amount to $10 million a year — the equivalent of a permanent 23-percent reduction in our wages, albeit by dramatically different methods. At the same time, managers and other exempts are taking a temporary 5-percent cut. While the company wants to reduce from 3 percent to zero the maximum match for union members’ 401k contributions, managers this year received an increase in their 401k match from 3 percent to 5 percent. While the company wants to dramatically reduce its contribution to our health insurance fund, which would precipitate a $1,000 per year increase in premiums paid by Guild members, the company has provided managers enhanced health and dental coverage and is paying most of the increase in cost. While the company wants to freeze Guild members’ pensions, it is reducing managers pensions by only one-third.

In each of those cases, exempt employees already enjoy significantly better compensation and benefits than Guild members.

The publisher, Steve Ainsley, has claimed that managers and other exempts have absorbed the equivalent of a 16-percent loss in salary and bonuses since last year but has not produced any backup information to support it. That’s probably because the numbers can’t possibly add up to that. If they’re taking a 5-percent pay cut, does that mean they received, on average, an 11-percent bonus for 2008, a year in which the Globe lost $50 million? I doubt it.

But even if the figure is accurate — and no one believes it — the exempts are taking a 16-percent hit and the Guild members are taking a 23-percent whack.

Never mind that the Times itself continues to inch closer to the precipice of bankruptcy with a series of colossal business blunders and an unwillingness to take more serious steps to stop the bleeding in its own business, which includes the International Herald Tribune. The IHT has always lost money and, in the era of the Internet, is an anachronism and in this economy is probably losing record amounts. The Times Co. says it does not disclose the financial performance of its component parts, but we know that’s not true. They made sure the amount of Globe losses appeared on the paper’s front page and every other media outlet as part of their negotiating strategy.

Yet the Times Co. said it was prepared to shut down the Boston Globe, which has long served a distinctive community, before it would shut down the IHT, the precious “global edition of the New York Times,” an expensive hood ornament indeed.

During the course of negotiations, the company has repeatedly engaged in punitive, bad-faith bargaining and basically committed an act of corporate terrorism with its threat to close the paper. They have traumatized their own employees, their employees’ families, and the wider community that cares about and depends on this newspaper.

I think we’ve put to bed the notion that they can afford to make good on that threat, because the Times Company’s own finances are so fragile, the cost of closing us would wreck the parent company. But the damage is done.

Finally, the lifetime job security issue is a red herring promoted by the Times Co. Your reliance on it to support your threadbare position betrays your ignorance. Many of us, maybe most, with so-called lifetime job security would get rid of it, and if the company wants to get rid of it, they can go to binding arbitration under the terms of our contract. Their problem is that they have publicly stated the monetary value to the company of eliminating the language is zero. Zero.

Brian C. Mooney
Staff reporter
The Boston Globe