McClatchy ad revenue is improving, says Pruitt

Advertising revenue is “finally” improving for the McClatchy Co., and all of its 30 daily newspapers are profitable, including The Sacramento Bee, chief executive Gary Pruitt said this month.

At the same time, the Sacramento-based company will continue to “look for every opportunity to reduce expenses,” he said.

Fourth-quarter ad revenue is expected to be down about 20 to 25 percent from a year ago. That’s bad, but much better than the 28 percent decline in the third quarter and 30-percent-plus drop in the second quarter, compared to a year ago.

At The Bee, meanwhile, a new round of labor negotiations got under way in November between the newspaper’s management and newsroom employees. On the line for employees are salaries, severance, job security and work hours.

From the employees’ perspective, “there’s a lot to be upset about” with management’s initial proposal, said Ed Fletcher, the Guild’s Sacramento unit chair.

Fletcher said the proposal would allow The Bee to reduce full-time employees into part-time workers, and trim the severance pay cap from 40 weeks to 26, making layoffs less expensive. If a veteran reporter was laid off, for example, the company could save $10,000 under the proposal.

And while McClatchy recently announced it would lift a companywide wage freeze, Fletcher said all raises are subject to ongoing bargaining.

It took a year for employees at The Bee’s sister paper in Modesto to ratify its contract, he said. “Nobody’s trying to drag it out,” he said. “There are complicated and important issues on the table.”

[Source: Sacramento Business Journal]