The news is breaking
It’s no secret that the nation’s newspaper industry is facing unsteady times. Diminishing circulation numbers and falling advertising sales have put many jobs in jeopardy in addition to those already lost.
The state’s largest daily newspaper, the Honolulu Advertiser, is not immune. Most recently, the Advertiser laid off 27 of its employees Oct. 20 in an effort to have a more focused and efficient operation after a consolidation with Pacific Media Publications.
Wayne Cahill, administrative officer of the Hawai’i Newspaper Guild and Union negotiator, says the industry in general is not doing well. He says over the past year roughly 70 to 80 jobs have been cut at the Advertiser, or about 10 percent of the work force.
Cahill points toward problems with ad sales and consumerism. “People are not buying and are not advertising,” he says.
Gannett Co. Inc, which owns the Advertiser, announced 1,100 job cuts nationally as a result of continued losses in advertising revenue and the economic downturn. More than 75 jobs have been cut at the Honolulu Advertiser since July.
Regarding the uncertainty of future job cuts, Cahill says management hasn’t been able to settle on a workable business plan.
According to the Hawai’i Newspaper and Printing Trades Council, Advertiser company negotiators presented a new contract proposal Oct. 11 seeking $5 million–$10 million in savings through changes including voluntary staff reductions and other benefit plan cutbacks due to the receding economy and decline in business.
Cahill said because of the current economic climate, the unions are willing to talk further with company officials about ways to save money and increase income without further layoffs, although, it would be difficult to accept many of the proposals without further proof the proposals are necessary and no assurances cutbacks would not be permanent.
The Associated Press is also in a hiring freeze. There are no positions available across the company, said David Briscoe, AP Bureau Chief in Honolulu and Hawai’i Chapter President of the Society of Professional Journalists.
The economic drawback is not only affecting the status of employees, but is also driving up the costs of production and distribution.
In addition to the cuts, on Oct. 12, the Advertiser has raised the cost of its daily edition from 50 cents to 75 cents and the Sunday edition from $1.75 to $2. The increase is said to be due to the rising costs of materials and fuel. It is the paper’s first increase since 1995. The Honolulu Star-Bulletin raised the price of its Sunday edition to from 75 cents to $1 on Aug. 3.
Still, Cahill believes that Hawai’i newspapers are in better shape than others. “The economy situation is not good,” says Cahill, “[But] our town is in better shape than many towns.”
On Monday, the Audit Bureau of Circulations released its most recent figures for the six-month period ending in September.
The review outlines a daily circulation drop of 4.6 percent for the 507 newspapers reporting. Sunday papers, with 571 newspapers reporting, showed a similar drop.
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