“What’s going to happen next?” remains the hottest topic of conversation among Canwest employees two weeks after the company’s newspaper division entered creditor protection.
Here’s what we do know:
The big Canadian banks that, in effect, are currently running the company because of the debts owed them, have made an offer of $925-$950 million for “substantially all” the newspapers, websites, printing plants, etc.
A process has begun that solicits “expressions of interest” in Canwest newspaper assets.
One expression of interest that has been reported is for the Montreal Gazette, Ottawa Citizen and National Post and no other papers. The public faces of this expression made many comments about local ownership, community connections and the problems of chains, opinions that we have expressed for many years.
Canwest spokespersons, on the other hand, have talked about the desirability of all the newspapers staying together as part of one national advertising selling organization. However, we do know that these Canwest spokespersons are unlikely to wield much influence in the ultimate decisions regarding who buys what. The bottom line will be most important to those with the real power in this process, which are the banks.
For example, it may make sense to sell off all the big city dailies to one buyer; Windsor, Victoria, Nanaimo and Alberni to others and weeklies to yet another. This or some variation may produce the biggest aggregate offer.
Debt, or more precisely the lack thereof, remains the key to the success of this process, at least from the point of view of those of us who are employed producing newspapers, large and small. It is in our self-interest that whoever buys the whole, or pieces, of Canwest’s newspaper empire owe as little as possible, so that we do not end up in the same situation a few years down the road.
We have another six weeks to go, according to the CCAA plan, before we may know all those who have expressed interest in purchasing assets.
Regardless of the outcome of this process, all the Canwest assets may not find buyers. For example, what will happen to College Printers, which prints the Globe and Mail for the B.C. market and many of the Canwest Lower Mainland community papers, but which the company has announced will close on Sept. 30, 2010? Will a buyer be found that wants to keep the plant open, at least through Sept. 30? If not, what happens to Local 2000 and Local 525 members who will be owed severance and vacation pay?
How Canwest, the banks, the court monitor and the judge treat our most vulnerable members will be an important factor in shaping our union’s strategy in this CCAA supervised sale process. Will the banks wage war on our members, forcing us to respond in kind? Or will there be room for good will, sitting down to talk and trust?
The next few weeks will be interesting.
Gary Engler
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