LAKEPORT – Non-union employees of MediaNews Group's more than 50 daily newspapers received word Wednesday that they'll be required to take a week of unpaid leave sometime in February or March to help the company make ends meet.

Lake County News obtained a memo from Steve Smith, vice president of community newspapers for MediaNews Group's California Newspapers Partnership, which informs employees that they will be required to take the unpaid furlough in an effort to help offset revenue declines.

MediaNews Group is the parent company of the Lake County Record-Bee, Clear Lake Observer-American, Ukiah Daily Journal, Chico Enterprise-Record and the Oakland Tribune, among many others.

The Associated Press reported that the furlough order will affect 3,300 newspaper employees – including managers – across the company's daily and weekly newspapers.

Last month, MediaNews Group announced that it would temporarily suspend its matching contributions to employees' 401(k) retirement plans, as Lake County News has reported. That move is being emulated in other newspapers around the country.

The Rocky Mountain News has reported that MediaNews Group had to loan its flagship paper, the Denver Post, $13 million to make its December payroll. The Berkeley Daily Planet reports that MediaNews' East Bay Newspaper Partnership has reduced its staff by 60 percent in continuing layoffs.

Earlier this month, the Record-Bee's newsroom also shrank by one staffer, when News Editor Mandy Feder – the person largely responsible for laying out and proofing the paper – was laid off and her job eliminated.

Newspapers around the country are having financial problems. This week, McClatchy announced it would suspend dividend payments to stockholders.

The full text of Smith's memo is below.

January 28, 2009

TO: NCN Employees

FROM: NCN Central Office

Dear Fellow Employee,

In a further effort to help offset the continuing decline in revenue and position the company for future financial success without further job losses, I am announcing the implementation of a mandatory one (1) week furlough for all employees to be scheduled during the period beginning February 1, 2009 and running through the month of March. Each employee's department head will determine the actual week an employee is furloughed. All management including myself is included.

I realize that we are all working so hard to overcome this difficult time. I know this action will create a strain on our personal budgets. I know I cannot guarantee that a furlough will prevent any further layoffs. However, from what I am hearing across our company ... “a brief period without pay is better than many more layoffs.”

Please understand that I am not trivializing the serious nature of furloughs. Implementing unpaid furloughs is indeed a very serious step. This furlough action is unprecedented for our company. But, I am confident that an unpaid furlough will go a long way toward keeping future layoffs, if any, to a minimum.

Over the next few days, your department heads will meet with you to further explain the furlough process and how people will be scheduled. A Q&A sheet is being prepared for distribution. Your human resources contact will be available to assist you and your supervisors.

Although our customers are our top priority, we will not ignore our other most valuable asset ... our employees. Be assured that throughout this action we will be fair to all our people. To that end personal situations will be considered based on seniority and the operational needs of the company. But, such considerations should only impact when a person's furlough begins and ends, not if a person will or will not be excused from a furlough.

At this time it is important to understand that we, like many media and other companies, are facing significant financial challenges due to the deep recession. We are not the first and we certainly won't be the last to implement furloughs or take similar steps in order to address these challenges and keep our financial houses in order. We take these actions on our own because we can and we should ... for the long term good of our customers and ourselves.

Thank you for your understanding, your support and your dedication.

Sincerely,

Steve Smith

Vice President, Community Newspapers

Northern California

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