Final Days? A Newsroom Diaryby Ian Lind, Star-Bulletin reporter
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What a week, and here it is, distilled in a few photos.
After intense anticipation and diverse rumors, the court issued an order on Wednesday designating a single qualified buyer, triggering a round of pizza for lunch the next day, courtesy of AP chief Gordon Sakamoto.
That's S-B publisher John Flanagan addressing the troops, with stacks of pizza boxes in the foreground. John's basic message: "It's not over yet, but this is another major hurdle that we've gotten over."
John also said he's spoken with David Black, and described Black's plans as "exciting".
The news boosted the energy level in our newsroom. I even had to get into the picture with the unauthorized "now hiring" sign that went up on the door.
photo by George Steele
In Kaaawa, we're closing in on prime sunrise season. Actually, this really just means that we can now start our morning walk just before 6 a.m. and get down to the beach before the sun is up, then track it through each stage of the sunrise. We look forward to this time of year, and every morning for the next several months will be an exquisite adventure.
And, last but not least, this was the first week of Harry & Lizzie, seen here with a newly discovered toy.
They've brought our latest lesson in the circle of life, as a good friend pointed out.
The last year's been hard on all of us and, although often overlooked, our families have been along for the ride. Here's how the daughter of one Star-Bulletin couple summed up her experience of the year that started with the announcement of the Star-Bulletin's proposed closing:It's been a year since that night. Miraculously, the Star-Bulletin has continued to publish, kept open by a restraining order issued in an antitrust lawsuit against the newspaper owners. The case is complicated and I don't understand it exactly. I can't explain it. But nothing has been quite the same at our house since that night. Our lives were put on hold. Things changed. We didn't take a vacation this year. There were fewer trips to the mall. Family decisions were put off. It seems like my parents' favorite saying has become, "We can't decide that now." I haven't liked living with my parents' up and down moods. I kept wondering if our lives will ever get back to normal.This excerpt is from a personal reminiscence by Amelia Burlingame, age 14, daughter of S-B couple Burl Burlingame and Mary Poole-Burlingame. A school counselor, also a friend of the Burlingame family, forwarded it to me, and Amelia agreed to share it. Check out the full essay--it's worth it.
Meanwhile, I'm starting to worry about an exit strategy. This diary project started as an adventure expected to end in less than six weeks and here we are, nearly 13 months later. Now, with a buyer on line and a deal expected within a month, what's the logical ending point? The closing? The move? Our first edition published independently of HNA? If you've got any thoughts, please let me know.
It was about a year ago that boxes of financial records were hauled out of the building and loaded into shipping containers. It was believed at the time that some of those were sent off to Washington in response to a "request" from the Justice Dept.'s Antitrust Division.
Yesterday morning, a white van pulled up next to the remaining two containers and a three-man crew began moving boxes from the containers into the van.
I moseyed on over to satisfy my curiosity about the contents. Sure enough, there were stacks of boxes containing a variety of financial and circulation data.
When I started taking photos, the crew abruptly closed the containers and took off for parts unknown.
Of course, we really don't know why the records are being stored out there or why they were being moved. Whether this has any relation to the court case that has kept us in business for the last year, we don't really know. But there was no shortage of speculation and wild theorizing in the hours after the mystery van sped away from the building.It at least made an interesting beginning to another long week of waiting.
Tuesday morning's breaking news was a 7:15 a.m. fatal police shooting in the middle of Waikiki. A witness photographed the incident from his condominium, and then phoned the Star-Bulletin to offer us use of the photos, saying that he supports the paper's efforts to survive. The exclusive photos gave our coverage drama that the other guys couldn't compete with in their coverage today, and the break came because of the community support we are getting. Another boost to our odds of survival.And San Jose Mercury News business writer Peter Delevett stumbled into another example of us v. Gannett. In a column yesterday on the big bash underway in Honolulu for some 7,000 employees of computer giant Sun Microsystems, Delevett noted:
One of the most closely guarded secrets is the identity of an ``international megastar'' who's been hired for a private Wednesday night concert. Despite persistent wheedling, sources at the Advertiser refused to name the performer, for fear of angering Sun. But a call to the paper's crosstown rival, the Star-Bulletin, revealed it's none other than Elton John -- who just two weeks ago was noodling the keyboard for a gang of tech elites at an Atherton fundraiser for Al Gore.And so it goes.
Buried on page B-4 of Tuesday's paper was a legal notice with print so small it's extremely difficult to read, probably only technically legal, and that only if our presses were better. It was the US Postal Service "Statement of Ownership, Management and Circulation" for the Honolulu Star-Bulletin.Boring, except that two figures jumped out:
Average paid and/or requested circulation during the last 12 months= 61,545Paid and/or requested requested circulation for Sept. 15, 2000= 62,197
Hello?! This appears to say that in the year since Rupert's attempt to close the paper, and throughout all the subsequent turmoil, Star-Bulletin circulation has held steady. In fact, the one day circulation on Sept 15 was above the average for the year, and if you check that back issue online, it was not a flashy news day.
Watch out--We're Not Dead Yet!
Ian Lind What is the sound of a firewall falling? You should have been in our building late yesterday to find out, as Gannett hosted a party for advertisers in the lobby area downstairs, complete with Christmas decorations all around. At about 6 p.m., when I briefly stopped to look down from the 2nd floor balcony, Advertiser editors were making the rounds, chatting up the gathered advertising clients. So much for the clear separation of news and sales.
Meanwhile, three-way negotiations were underway in Chicago yesterday between Rupert Phillips, representing the partnership that owns the Star-Bulletin; Gannett; and Black Press. According to tales circulating in the newsroom, Gannett is making progress difficult. After arguing in court for a year that the Star-Bulletin is clearly a failing newspaper, they are now trying to squeeze "market value" out of the only qualified prospective buyer to emerge from the process. Hey, folks--Black is the market, as far as I can tell.
They are also said to be fighting over the library (Gannett reportedly says we don't need more than five years of clippings) and telephone numbers, among other items.
They've got three weeks to wrap things up before the next court deadline. It isn't clear whether the staff will be incorporated in the discussions before then or not. Waiting doesn't seem to make much sense, but not much of this process has.
It was a high energy Thursday on the other end of our newsroom, complete with the hoisting of a Canadian flag over the copy desk, accompanied by the strains of 'O Canada' playing on George Steele's computer.
The scene can also be viewed on the infamous S-B newsroom cam throughout the day.
The high spirits prevailed despite cautions that there's no done deal, and given the combination of Gannett's corporate clout and continued interest in a monopoly role, there's still a possibility that it could all fall through.
The court's oversight and threat of continued litigation probably increase our odds, but we're not out of danger yet.Back on our end of the newsroom, the spirit was less contagious, more sober. I'm not sure where the difference lies.
You didn't hear it from me, but there's a reservation for a large group from the Star-Bulletin at Murphy's for Saturday night, October 28, the day after the deadline for wrapping up negotiations on the sale. Whether it's to be a celebration or wake remains the unsettling question, despite the sense that momentum has turned in our favor.
But it's Friday, and the morning started with a green flash just moments before this photo was taken, so we're off to a good start on the day.
The flag came down midmorning Friday, not because of management interference, but due to an objection by a S-B staffer. However, a quick check on the newsroom cam this morning shows it's back up, so your guess is as good as mine. And, by the way, note that the cam's expanded to include two different views of the newsroom, one in color.Word of some kind of impending announcement of "midlevel" changes over at the Advertiser had folks in our newsroom scurrying to their phones for repeated checks with personal sources across the hall, but no clear information had emerged by the time I left for the day. They're said to be moving ahead with Gannett's national-model technology section, part of a nationwide Gannett initiative to use centrally produced copy as the backbone for local products. An expanded food section also in the works, along with other changes in features. But I guess we'll have to wait until Monday for specifics to emerge.
No further word on the negotiations in Chicago. Is "no news" good news?
The inexplicable happens again. It was 1:45 p.m. on Friday afternoon when I crossed the street to the busy corner directly in front of the entrance to downtown Honolulu's main post office. Just as I stepped up on the curb, I saw a man getting ready to drop coins into an Advertiser street rack, one of a long line of newspaper boxes at the corner, and I went over to suggest buying the Star-Bulletin with it's later news. Well, once again--the Advertiser box had obviously been recently restocked, while the TWO Star-Bulletin boxes immediately next to it were both empty.Now, as they say, that dog don't hunt. This just wouldn't happen except as part of a plan to restrict Star-Bulletin sales at key outlets. Not at that time of day, so close to prime Star-Bulletin territory. Gannett strikes again.
I know that recounting this little story will bring more howls from across the hall that I'm being unfair, but seriously, people, there's no way around it.
Thanks to S-B staffer Mark Coleman for this explanation of the reappearance of the newsroom flag:
The flag is back up, but not where it had been, which was right down the middle of the main copy desk area, blocking everyone from seeing each other. Now it's up against the back wall, out of everyone's way, but still visible for the starbulletin cam.
Yesterday's mention of continued street sale problems brought this addition from a reader:I thought for a moment it might be paranoia on my part, but Friday morning at 11:20 I went to the Star-Bulletin rack at the relatively busy corner of Nuuanu and Hotel and put in my 50 cents after establishing it was today's paper on view. I took out my paper, leaving two more behind me. I don't for a second think that rack was ever filled to the brim nor that anyone helped themselves to an armload. It's just a surefire way to keep street sales down.And it will probably get worse as we get closer and closer to either real competition or closure. Either way, Gannett has no interest in seeing us succeed.
I also received several responses to my query about an "exit strategy" from this diary project. Here are a few:
How about when Gannett leaves town? Could happen.* * *
Silly rabbit, we're too stupid to know when to quit.
You're sentenced to write this thing until you drop! =)* * *
The only logical stopping place I can think of would be you getting killed by a speeding van full of secret Star-Bulletin financial and distribution records. Or shot by a Gannett goon snooping around the new Star-Bulletin printing facility and editorial offices, just as you snap his picture. This is a ride you can't get off. We won't let you. Ever hear of the never-ending story?
Apparently it will be a while, whatever strategy falls into place. So stay tuned.
If you're bored enough to wonder how I spent the weekend, you can click here. Warning: This link contains material that may be offensive to certain Star-Bulletin columnists and other feline phobic pfolk.
There are obviously many reasons for the continuing decline in Gannett stock throughout the year. GCI has fallen from $83 a share down to around $50, with brief dips below $50, slashing the value of holding and, of course, those executive stock options. My preferred explanation for the stock's collapse is simple: Bachi. Divine retribution. It's a lovely stock chart, peaking soon after our last issue was scheduled to run, and continuing downward in a steady trend ever since.Here's another view of the exit strategy issue, from another regular reader who disagrees with those who say the newsroom diary should just roll on forever:
If we are sold, the transition will be difficult and if the paper is to succeed in the long term, we don't need potential advertisers and our competition knowing every little tic and hiccup that goes on in the newsroom. When we compete directly with Gannett, the competition will be cutthroat (which, believe me, it ain't now) and we'll just need to keep more things to ourselves.Speaking of Gannett/Honolulu Advertiser and competition, word is that advertisers are being offered a special deal for full page ads in the new technolog and food sections set to debut about October 18. Essentially the deal is: Buy one full page ad at the regular rate, and it will run four weeks in a row. Put another way: buy four weeks and get 75% off the regular full-page rate. I'm sure it's just a shot across the bow, and there will be more cutthroat competitive offers if or when the Star-Bulletin goes independent.
A Sacramento-based writer for Editor & Publisher called Monday for info on the Star-Bulletin's current situation, so watch for more coverage in their pages.An update on collective bargaining was distributed yesterday following three days of talks between the newspaper unions and Gannett/Hawaii Newspaper Agency last week. It seems that suddenly Gannett, after months of stalling, wants to see a new contract in place as soon as possible, and has agreed to several items involving increased costs in order to move the talks forward, although I'm told wages still haven't been discussed. Recall that the contract expired back in June, and we're currently working under an automatic extension.
Gannett apparently wants to get this contract set before a Star-Bulletin sale goes through. It looks like they want to be sure that any buyer is locked into a contract covering S-B staffers. It might also be that they are worried about staff defections to an independent Star-Bulletin, and want to have the contract in place as a retention mechanism, to reassure current staff that their jobs are protected. Either way, it means that Gannett's suddenly realizing that competition is coming.
No one on our side, at least, seems at all clear just what collective bargaining constraints Black Press will be under if they complete the purchase of the Star-Bulletin. While the Guild contract covering the existing newsroom staff will certainly remain in place, the status of the as yet to be assembled production, marketing, and distribution staff remains in doubt. It isn't even clear how that will be determined, and whether the bargaining team representing our newsroom will have to negotiate over the status of those future employees.
Still no further word out of the Chicago talks between Black, Gannett and Liberty Newspapers, while the Oct. 27 deadline is coming up quickly.
Copies of the most recent Guild Reporter started hitting Star-Bulletin mailboxes yesterday, featuring both a headline about the sale negotiations here, as well as a reprint of the "Bad Boy" poster, seen here earlier.
Sometimes we lose perspective, and its good to be reminded that just happen to be at ground zero of the latest round in a nationwide struggle between the Guild and other unions, and the corporate giants that increasingly control the news industry.
We're not only saving our paper, we're also setting important precedents, at least with a little luck.
Speaking of the Guild, there's one more thing worth noting on the collective bargaining front: Gannett says it is looking for a short contract term of 2 years, although recent contracts here in Honolulu have been for twice that length. It may simply be a recognition that the competitive environment will be quite different in two years, but in our newsroom it's seen as a move to put a maximum burden on any Star-Bulletin buyer during the critical startup phase, while leaving an "out" for Gannett not too far down the road.
I hope it's not an indication of anything, but the reservation at Murphy's for a Star-Bulletin party on October 28, the day following the court's deadline for wrapping up negotiations on the sale, have been quietly canceled, ostensibly due to conflicting events.
There's been speculation in our newsroom about what's going on across the hall at the Advertiser. Several people say the looming prospect of real competition has them circling the wagons and has succeeded in uniting their midlevel editors, against all odds. There are also rumors of possible staff turnover on their side, but so far those have gotten no confirmation despite efforts by several folks to tap into their own sources, so the rumors may be very off base.We're also wondering when some news will emerge from the ongoing negotiations. There's been zero information making it back to the newsroom, so we're all continuing on faith. Staffers have been stopping me, as if I've got some insider's hotline, flattering but unfortunately not true. Meanwhile, though, S-B editors are reluctant to see resources go to longer term projects until the deal is done. For now, focus is on what can get into the paper this month. For now, it's a month at a time, I guess.
And there have been new frictions emerging in our newsroom, and increasing levels of grumbling and whispering among one group of reporters, reflecting problems with the understaffed city desk. We all need to be pulling together, but troubleshooting this kind of problem isn't easy when everyone's already stressed to the max. Hopefully we'll get over this hump soon.
Several people reminded me yesterday that the Oct. 28 party at Murphy's conflicted with this year's incarnation of the Gridiron Show, as well as a football game and other events. So postponing it makes sense, unless, of course, the court hearing on the 27th seals the deal, or undoes it. If that happens, we'll just have to improvise, won't we?
There have been some uneasy comments about Friday the 13th, but it seems doubtful that any surprises are in the works for today. Of course, I say that, but we've got to make an early morning run to the airport, and here at 4:45 a.m. the coffee maker is drooling boiling water and coffee into a small lake on the kitchen counter as I scramble to wipe it up so that it doesn't spill down onto the kittens, who insist on playing right here. So who knows what real problems the rest of the day could bring?
By midmorning Friday, the gossip networks were buzzing as word of a major management reshuffling reached across the hall from Gannett's Honolulu Advertiser. Actually, it's more than a reshuffling. It's a major redeployment, coupled with a significant newsroom expansion.Soon it was like watching election returns in our newsroom, as changes in various positions were slowly announced by surreptitious sources. By midday or so, a copy of the Advertiser memo announcing the full scope of appointments was getting wide underground circulation in our newsroom.
First came the promotions and moves. I don't have a copy of the Advertiser memo, so I'm trying to recall the specifics. Managing editor Jim Kelly becomes executive editor, a position that has not been used recently. Dave montesino, who left for a Northwest promised land several months ago, returns unexpectedly as managing editor. Mark Platte gives up his position at the L.A. Times and moves to Honolulu in a few weeks to become assistant managing editor for news. Online editor Sandy Oshiro becomes an assistant managing editor for new media. Assistant city editor Marsha McFadden becomes city editor. Longtime court reporter Ken Kobayashi moves over and becomes assistant city editor. Senior editor Anne Harpham becomes responsible for political coverage, including the capitol bureau.
The memo then went on to list 21 openings, about half for reporters and the rest ranging from assistant pooh-bahs of various sorts to a photographer and web designer.
This looks an awful lot like the major expansion they first announced a year ago, which was meant to beef up the "surviving" Advertiser after the closing of the Star-Bulletin. A year ago, many of those positions had been offered to folks from the Star-Bulletin, but those offers were taken off the table when the injunction blocked any raids on our newsroom. Now the expansion has taken on the look of a call to battle stations.
Twenty-one positions is a big deal in just about any city, and it sent one of our staffers to the in-house phone director for a staff count. The Advertiser currently lists about 120 staffers to our 80-something, and this appears to be another 20 percent increase to their ranks.
Gannett is throwing down the gauntlet for Mr. Black, it would appear.
The Advertiser's staffing changes were publicly announced in today's paper, pretty much as reported here yesterday.They're making a lot of a new technology section without mentioning that this is actually a nationally written and produced vehicle for local advertising, not a locally driven news product. You may recall Gannett's announcement of plans for the technology section, complete with national staff, back in June:
"The second special step is the development of a weekly technology section, to be produced at Gannett News Service in Arlington and sent to the newspapers for their use. Newspapers will be able to modify the section to add some local news content and local advertising. But the section primarily will be ready for use with little or no change."There were several other comments from S-B staffers. One noted that the Advertiser, like many other Gannett papers, is incredibly management heavy, with pooh-bahs and assistants at each level adding their own weight to the overhead costs. You can almost hear the groans as their side of the building tries to stay upright under the stress of the top-heavy load.
Notice that the folks filling three of the Advertiser's top four news positions (Kelly, montesino, and McFadden) have each been in Hawaii since 1997, and Platte is getting off the plane from Los Angeles soon? Way to go, Gannett! That's the way to show the priority given to in-depth reporting of local news and affairs.
And this message from another Star-Bulletin staffer, who noted that in several departments we have one or two people doing what it takes six or more to do across the hall.
We tend to do a lot more with a lot less. And often we do it better. It's not a matter of better people, but just using what we have to its best advantage. Putting the right people in the right positions.The famous Japanese swordsman Miyamoto Musashi wrote a book entitled "The Book of Five Rings". It doesn't mention sword fighting very much but instead goes on at length about carpentry and building a house. The principle he put across is taking what you have and applying it to whatever suits it best.
And that's where the Adv runs into trouble. The management fails to lead with inspiration and doesn't recognize the talents and aptitudes of its own staff. It didn't even recognize the unique capabilities of the people we have when it originally was going to hire our soon-to-be-displaced staff.
Hoping that Black will be able to make the best of what he would acquire. And if he does, we'll continue to stack the deck in our favor.
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