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Loumug

Our blogger's identity is top secret, but you can call him Lou Grant. He's got the inside dish on doings at the Trib, Sun-Times and other Chicago media companies.


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Sun-Times Annual Report raises questions


The Sun-Times Media Group description of the August 2007 distribution agreement with the Chicago Tribune: "the Company entered into a contract with the Chicago Tribune Company for home delivery and suburban sing-copy delivery of the Chicago Sun-Times and most of its suburban publications. The Company will continue to distribute single-copy editions of the Chicago Sun-Times within the city of Chicago and will also continue to operate the circulation sales and billing functions with the exception of single copy billing in the suburbs.

"The Company has completed the transfer of distribution activities to Chicago Tribune Company. Approximately 60 full and part-time positions were eliminated as a result…

"As of December 31, 2007, the Company (had) 278… circulation staff."

From the 2006 annual report to shareholders: "As of December 31, 2006, the Company had… 309 circulation staff."

Why is there a difference of about 30 positions? Because the Sun-Times Media Group is counting only full-time positions in its census. In its savings it is also counting part-time positions.

Here is a table, showing the statement of staffing from 2006 and from 2007:

Function

2006

2007

Change

%

Part-Time

401

273

-128

-31.92%

Full-Time

2440

2569

129

5.29%

Production

560

598

38

6.79%

Sales & Marketing

576

637

61

10.59%

Circulation

309

278

-31

-10.03%

General & Administrative

236

282

46

19.49%

Editorial

738

753

15

2.03%

Facilities

21

21

0

0.00%

Union

1052

965

-87

-8.27%

Non-Union

1789

1877

88

4.92%

TOTAL

2841

2842

1

0.04%

According to this summary of full-time employees only, from the annual report, the editorial staff increased, year over year. Really? But that's at odds with statements coming out of the company. And, the biggest increase in employment levels was in general and administrative staffings. G&A-- they don't produce ads, editorial or newspaper sales. Yet there are 46 more of them at year end than a year ago.

It is no wonder this turnaround is so disappointing.

Circulation showed the largest decline, year over year. But it also raises a big question. Half of the elimination was part-time staff. I believe about ten of the remaining thirty were teamster drivers. If all the circulation function, except sales, billing and union drivers are outsourced, why hasn't this figure fallen further?

An argument could be made that the Chicago Sun-Times, which sells 59 percent of its copies through street sales or single copy sales, actually needs more teamsters, not less. Did circulation protect its own in this outsourcing with the Chicago Tribune?

Recall, too, that this company outsourced its customer relations department, is that part of circulation too?

Discuss

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