The union representing newsroom employees at the Chicago Tribune and other Tribune Publishing newspapers is waging a proxy campaign to unseat two board members representing hedge fund Alden Global Capital, the largest shareholder of the Chicago-based newspaper chain.
In a letter dated Monday, the NewsGuild-Communication Workers of America urged Tribune Publishing shareholders to vote against the election of Dana Goldsmith Needleman and Christopher Minnetian to the eight-member board. A copy of the letter was filed with the Securities and Exchange Commission on Tuesday.
Voting is set to take place at Tribune Publishing’s virtual annual meeting May 21.
Alden took a 32% stake in Tribune Publishing in November, primarily through buying the shares owned by former Chairman Michael Ferro. Needleman and Minnetian, Alden’s representatives, were added to the newspaper company’s board in December, which expanded the board to eight members.
Heath Freeman, Alden’s president, did not immediately respond to a request for comment Tuesday. Tribune Publishing spokesman Max Reinsdorf declined to comment.
Launched in 2007, Alden owns about 200 publications through an operating company now known as MediaNews Group, formerly Digital First Media. The chain has come under fire for sweeping layoffs at its newspapers, including major dailies such as The Denver Post; The Mercury News of San Jose, Calif.; and the St. Paul Pioneer Press, as well as smaller weeklies.
Alden is restricted from increasing its stake in Tribune Publishing to more than 33% until June 30.
Local chapters of the NewsGuild-Communication Workers of America, including the Chicago Tribune Guild, are engaged in negotiations with Tribune Publishing over the company’s plan to reduce salaries and furlough newsroom employees as advertising revenue declines amid the coronavirus pandemic.
The union letter to Tribune Publishing shareholders, signed by Jon Schleuss, NewsGuild-CWA president, questioned the qualifications of Needleman and Minnetian, and whether “their interests are aligned with those of Tribune Publishing.”
The union also said in its letter that Alden’s own recent financial performance, including “substantial cuts to its staff and declines in its assets under management,” raised questions about the hedge fund’s ability to successfully guide Tribune forward.
“Rather than being Tribune Publishing Company’s savior, Alden may lack the capacity to turn Tribune around,” Schleuss wrote.
In addition to the Chicago Tribune, Tribune Publishing owns the Baltimore Sun; Hartford Courant; Orlando Sentinel; South Florida Sun Sentinel; New York Daily News; the Capital Gazette in Annapolis, Maryland; The Morning Call in Allentown, Pennsylvania; the Daily Press in Newport News, Virginia; and The Virginian-Pilot in Norfolk, Virginia.
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