Mid-Valley Group lays off receptionists

The Albany Democrat-Herald and Corvallis Gazette-Times, Lee's Mid-Valley Group in Oregon, are laying off receptionists. The news was delivered the same day as the "good news" on Lee's debt renegotiation.

Uninformed speculation? 'Letter to readers' all very similar

From the Independent Record:

Just in case you’ve heard some of the uninformed speculation in a few circles, I’d like to give you an update on the financial health of our parent company.

On Thursday, Lee Enterprises announced that it has completed comprehensive changes to all of its debt obligations.

The changes will help our parent company weather the recession. The announcement also removes uncertainty among some observers that Lee would not be able to handle its debt during this time of severe economic downturn in an extremely tight credit market. Lee’s ability to do so underscores the long-term strength of our company.

This development also quashes ill-considered speculation that Lee’s debt obligations could somehow impair the ability of The Independent Record to continue serving readers and advertisers. Of course, that was never true.

From the Glens Falls Post Star:

Just in case you've heard some of the uninformed speculation in a few circles, I'd like to give you an update on the financial health of our parent company.

On Thursday, Lee Enterprises announced that it has completed comprehensive changes to all of its debt obligations.

The restructuring of our overall financial picture will help our parent company ride out the current recessionary climate. The news should remove any uncertainty on the issue of Lee's ability to weather the "storm."

This development also quashes ill-considered speculation that Lee's debt obligations could somehow impair the ability of The Post-Star to continue serving readers and advertisers.

Of course, that was never true.

From the Casper Star Tribune:

Just in case you've heard some of the uninformed speculation in a few circles, I'd like to give you an update on the financial health of our parent company.

Yesterday, Lee Enterprises announced that it has completed comprehensive changes to all of its debt obligations.

The changes will help our parent company weather the recession. The announcement also removes uncertainty among some observers that Lee would not be able to handle its debt during this time of severe economic downturn in an extremely tight credit market. Lee's ability to do so underscores our long-term strength.

This development also quashes all speculation that Lee's debt obligations could somehow impair the ability of the Casper Star-Tribune, Casper Journal and trib.com to continue serving readers and advertisers. Of course, that was never true.

From the Billings Gazette:

Just in case you heard speculation about the financial health of our parent company, I'd like to provide you with a timely update.

Yesterday, Lee Enterprises announced that it has completed comprehensive changes to all of its debt obligations.

The changes will help our company weather the recession. The announcement also removes uncertainty among some observers that Lee would not be able to handle its debt during this time of severe economic downturn in an extremely tight credit market. Lee's ability to do so underscores the long-term strength of our parent company.

This development also should end speculation that Lee's debt obligations could somehow impair the ability of The Billings Gazette to continue serving readers and advertisers. Of course, that was never true.

From the Montana Standard:

Dear Readers: Just in case you've heard some of the uninformed speculation in a few circles, I'd like to give you an update on the financial health of our parent company, Lee Enterprises.

Last Thursday, Lee Enterprises announced that it has completed comprehensive changes to all of its debt obligations.

The changes will help our parent company weather the recession. The announcement also removes uncertainty among some observers that Lee would not be able to handle its debt during this time of severe economic downturn in an extremely tight credit market. Lee's ability to do so underscores the long-term strength of our parent company.

This development also quashes ill- considered speculation that Lee's debt obligations could somehow impair the ability of The Montana Standard to continue serving readers and advertisers. Of course, that was never true.

From the Fremont Tribune:

In tough economic times it is easy to find yourself surrounded by negative and often unfounded views about your business or industry. We know full well about what that’s like.

In an effort to clear up some misconceptions, I’d like to give you an update on the financial health of our parent company and the Tribune as well.

On Thursday, Lee Enterprises announced it has completed comprehensive changes to all of its debt obligations.

The changes will help our parent company weather the recession. The announcement also removes uncertainty among some observers that Lee would not be able to handle its debt during this time of severe national economic downturn in an extremely tight credit market. Lee’s ability to do so underscores the long-term strength of our parent company.

This development also quashes ill-considered speculation that Lee’s debt obligations could somehow impair the ability of the Fremont Tribune to continue serving readers and advertisers. Of course, that was never true.

From the Journal Times, a slightly different version:

In today’s business climate it isn’t often we get a chance to share some positive news.

On Thursday, the parent company of The Journal Times, Lee Enterprises, announced that it has completed comprehensive changes to all of its debt obligations.

The changes will help us weather the recession. The announcement also removes uncertainty that Lee would not be able to handle its debt during this time of severe economic downturn in an extremely tight credit market. Lee’s ability to do so underscores the long-term strength of our company.

Another version from the Albany Democrat Herald:

Everywhere you look these days there are articles about the economy and the destiny of some industries including newspapers — mostly grim tales.

So it was great to be able to share the news last Thursday that our parent company, Lee Enterprises, had successfully negotiated comprehensive changes to its debt obligations. These changes will help Lee weather the recession.

The Albany Democrat-Herald and our sister publications in Corvallis and Lebanon have fared as well as one could hope during these times.

Arguably we are one of the oldest continuous businesses in the mid-valley, and we plan to continue serving readers and advertisers in the future.

Thanks to Billings Blog and Intelligent Discontent (and an e-mail tip) who picked up on this trend before I did.

(It looks like the Quad City Times had the same "letter," but I haven't been able to find it.)

Lee refinances debt; what does it really mean?

Lee Enterprises has refinance its $1.1 billion bank credit agreement; the final payment is due in April 2012. Lee repaid $120 million of the $306 million that was due next month; the rest of that bill was refinanced.

Is this good news? Bad news? What does it really mean? No idea. Editor & Publisher's Fitz & Jen have the best explanation I've seen so far. Please, help shed light on what this may mean for the rest of us.

One interesting piece to come of this: Lee was still dealing with a joint operating agreement between the St. Louis Post-Dispatch and the now defunct St. Louis Globe-Democrat, owned by Newhouse. Newhouse and Pulitzer shared the profits and expenses from the Post-Dispatch. Before Lee bought the Post-Dispatch in 2005, Pulitzer bought out 95 percent of Newhouse's interest. Lee finally got rid of that last 5 percent in this deal.

The memo from CEO Mary Junck:

February 19, 2009

Dear Lee Employee:

There’s good news today about Lee’s financial health. Lee has completed comprehensive changes to all of our debt obligations.

These changes will help us weather the recession. They also alleviate concerns among some investors that Lee would not be able to handle our debt during the combination of a severe economic downturn and an extremely tight credit market. Our ability to do so underscores the long-term strength of our company.

Today, we repaid $120 million of the principal amount of our $306 million Pulitzer Notes debt and refinanced the balance over the next three years. We also have amended the credit terms for our $1.1 billion of bank debt to provide a revised repayment schedule. In addition, we have redeemed the remaining 5 percent share of the St. Louis Post-Dispatch from the minority partner. I am attaching a news release with details.

Although significant economic challenges continue, our focus has been riveted on protecting our ability to grow in the long term. Even in this horrible economy, we remain, by far, the leading provider of local news, information and advertising in our markets. Our strength in print continues to be vast and stable, and our online reach continues to grow.

While revenue has decreased because of the recession, Lee continues to be an industry leader in advertising revenue performance. Lee has outperformed the industry average every quarter since 2003, and Lee’s advantage over the last two years has averaged nearly 5 percentage points per quarter. In 2009, we have ramped up our efforts to provide even greater value and effectiveness for advertisers. We believe our vigorous sales programs will help us further increase our lion’s share of local advertising spending, which should pay off even more when the recession ends. Meanwhile, as you well know, we have had to implement many cost reductions, some of which have impacted you directly.

Thank you for your hard work, dedication, determination and good spirits. I appreciate how you are staying the course with continued enthusiasm, creativity and absolute faith in our ability to assure our strong future.

Thank you again for all you’re doing to help our company remain strong during some of the worst economic conditions in our lifetimes.

With appreciation and best regards,

Mary Junck

The official release from Lee

Garden Island lays off 1 employee *

One employee was laid off Jan. 9 at the Garden Island in Kaua'i, Hawaii. A full-time circulation employee, who has worked at the paper for 14 years, was cut to part-time. Wages also have been frozen at the paper, and 401(k) contributions have been cut.

The Garden Island was a 2008 Enterprise of the Year finalist.

(Via e-mail)
(Updated with date)

Employees paid 2 days early

Lee employees who use direct deposit were paid today, two days ahead of the regularly scheduled pay day. Lee says it was a simple accounting error, and it was easier to pay employees early than to otherwise fix the error. The skeptic in me wonders if it could be something more. Any ideas?

Columbus Telegram outsources printing, lays off 11

The Columbus (Neb.) Telegram will outsource printing and packaging to the Fremont (Neb.) Tribune starting March 16. Eleven full- and part-time employees will be laid off at the Telegram. The Tribune will also start printing two weeklies, the Schuyler Sun and David City Banner Press.

Employee stock purchase plan suspended

Planning to buy Lee stock? Participation in the employee stock purchase plan has been suspended. The announcement from corporate:

To Participants in the Employee Stock Purchase Plan (ESPP):

Effective immediately, participation in the ESPP will be suspended indefinitely. No more contributions will be deducted from your pay, and the amount you have contributed during the current ESPP plan year will be refunded by direct deposit on Tuesday, February 17, 2009. The refund will be placed into the bank account you use for regularly scheduled paychecks. If you do not have direct deposit for your pay, a check will be mailed to your home.

This decision by Lee’s Board of Directors was a result of the continued low share price in combination with the predetermined number of shares allocated for purchase. In other words, at the current price, there aren’t enough shares to go around, and most of your contributions would have been refunded at the end of the period, anyway.

Shares you may have purchased from prior years will remain in your Wells Fargo ESPP account. Please contact Wells Fargo Shareowner Services with specific questions regarding your account at 1-800-468-9716 or online at www.wellsfargo.com/shareownerservices.

For any other questions, please contact the Lee HR Center at 877-434-5465 or hr@lee.net.

With best regards,

Jennifer Kivlin
Director, Human Resources

It's not a very sound investment -- the stock closed Friday at 31 cents a share, and has hovered around 30 cents for most of the week. At the March 10 board meeting, Lee will vote on the proposed reverse stock split. Would you vote for it?

Via email.

Fire, furloughs at the Times in Indiana

A fire broke out at The Times of Northwest Indiana on Friday -- the same day employees found out they must take 4-day furloughs by May 9.

Fourteen fire departments responded to the fire; one firefighter was injured.

Via e-mail

Comp time vs. overtime

Some comments on comp time have me worried. In most cases, comp time is not legal, but I worked at a Lee property where they regularly used comp time and awarded it months later.

Here's what you should know:

Under federal law, non-exempt employees who work more than 40 hours in a work week must be paid overtime at time-and-a-half. Employers can give time off during the same pay period if you work extra hours. Comp time cannot be carried to another pay period or month. If comp time is legally allowed by your state, it must be awarded the same as overtime: 1 hour worked = 1.5 hours comp time. If comp time is not awarded in the same pay period as it was earned, you should be paid time-and-a-half for those hours.

Check your state's laws. In California, for example, if you work more than eight hours a day (vs. 40 hours a week under the federal law), you are entitled to overtime.

If you have questions about overtime, the Department of Labor number is (866) 487-9243.

Lee sold stake in St. Louis Cardinals

Back in December, I complained that Lee was laying off people, but still owned 4 percent interest in the St. Louis Cardinals. Well, it looks like they did -- in another super-secret deal. A brief on Page 2 of the Jan. 21 Sporting News Today said Lee sold its stake in the team last summer for $14 million to $25 million.

The other super-secret deal: That plane fiasco. I still don't know what Lee sold that plane for, but it should have been millions.

(E-mail tip -- thanks.)

Quad-City Times lays off 10

From the comments:

I was told the Quad-City Times laid off 10 people in January but don't have details. I do know that a 70-or-80+ year old woman features writer was let go

I think that brings this quarter's layoffs up to 231.

No W-2s at Post-Dispatch; got yours? *

None of the employees of the St. Louis Post-Dispatch received W-2s. The tax form is required by law, and must be delivered by Jan. 31 Feb. 2.

Lee sent an e-mail to Post-Dispatch employees saying the W-2s were sent to the post office on Jan. 28, then they ... disappeared. How do you lose 1,000+ tax forms? Sounds fishy. Lee says it is reprinting and re-sending the forms.

Are employees at other papers missing W-2s?

The e-mail sent to Post-Dispatch employees:

From: STL HR Update
Sent: Friday, February 06, 2009 2:08 PM
To: STL All Local Users
Subject: W-2's

We have been informed that the W-2’s for St. Louis employees are being re-printed and will be re-mailed.

Lee Enterprises printed and sent the first W-2’s to the post office on Jan. 28. After that they cannot be tracked down. Lee Enterprises is still contacting post offices to attempt to locate them

The W-2’s are posted on link.lee.net under "payroll". You will be able to use that to begin your tax preparation.

Thanks for the tips on this one. Send e-mails and memos to lee.ent.watch@gmail.com.

* A reader pointed out that Jan. 31 fell on a Saturday this year. The deadline was extended to Monday, Feb. 2.

Group calls for boycott of Southern Illinoisan, Lee

A Muslim group is calling for a boycott of the Southern Illinoisan and Lee Enterprises. The group says the paper's production manager "used his position as a manager to make forbidden sexual approaches to a Muslim's wife." Read the complaint.

(Thanks for the e-mail tip.)

Stock closes below 30 cents

It's a new low. For stock prices, I mean. Lee shares fell 12.12 percent today to close at 29 cents. It's getting a lot closer to a quarter.

Almost a month ago it was 56 cents.

At the annual meeting March 10, shareholders will vote on the proposed reverse stock split.

Furlough update 2

A commenter raises a good question: Will overtime be paid while co-workers are forced to take time off? Has anyone heard?

I would assume that if employees are being furloughed, overtime had already been eliminated, but I know that's not true. MSNBC has a story on furloughs, but it doesn't answer this question. It does say that hourly employees can be furloughed repeatedly, but salaried employees cannot. If this is Lee's solution to fixing the second quarter crunch (second quarter ends March 30), what happens in the third quarter? Or fourth?

A reminder: If you are taking unpaid time off, that means no work. No work e-mails, no phone calls, no work.

More papers have announced furlough plans. Also in St. Louis, Post-Dispatch union employees are voting Saturday on furlough plans; furloughs were already announced for salaried employees. The union is asking for a no-layoff promise, and of course isn't getting it. (We all realize that layoffs are still possible/likely despite furloughs, right?)

The list so far:

• Suburban Journals of St. Louis: Salaried employees must take a week off by March. (e-mail tip)
  
• Herald and Review: Hourly employees must take off 12 hours by May 30, and salaried employees' pay will be reduced by an amount equal to 12 hours.
  
• St. Louis Post-Dispatch: Non-union employees -- about 300 people -- must take off 1 week by March 31. Union employees will vote this week on furlough plans.
  
• Rapid City Journal: As previously posted, four employees were laid off and employees must take time off by April.
• Waterloo-Cedar Falls Courier: All employees must take off 1 week by April 1.
• Longview Daily News: Employees were asked to volunteer for furloughs. If not enough people sign up, they'll consider making them mandatory.
• Bloomington Pantagraph: 4-day furloughs by April 17 for hourly employees; 4-day pay cut for salaried employees (from comments)
• La Crosse Tribune and River Valley Newspaper Group: "Non-commission" employees must take 40 unpaid hours off between now and April (e-mail tip)

Are there others? Let us know in the comments or e-mail lee.ent.watch@gmail.com.

Herald & Review added to furlough list

Herald and Review employees in Decatur, Ill., will also take unpaid time off: Hourly employees must take off 12 hours by May 30, and salaried employees' pay will be reduced by an amount equal to 12 hours. The memo from editor Gary Sawyer:

We made this announcement Friday afternoon. It pertains to the furlough issue we talked about earlier.

In order to meet our goal, every employee will work unpaid for 12 hours sometime during the next 17 weeks.

For hourly employees, that means you will take 12 hours off, without pay, sometime in the next 17 weeks. We will figure out a way to get folks scheduled for those days next week. It can be taken in any increment that is approved by your supervisor.

For salaried employees, their pay will be reduced over the next 17 weeks by an amount representing the 12 hours. Salaried employees can then take 12 hours off anytime from now until the end of the fiscal year.

I know this is complicated, so if you have questions, please ask me.

Gary

Thanks to the Lee employee who sent the memo. E-mail memos and tips to lee.ent.watch@gmail.com.

Furlough update

Here's the list so far:

• St. Louis Post-Dispatch: Non-union employees -- about 300 people -- must take off 1 week by March 31.
• Rapid City Journal: As previously posted, four employees were laid off and employees must take time off by April.
• Waterloo-Cedar Falls Courier: All employees must take off 1 week by April 1.
• Longview Daily News: Employees were asked to volunteer for furloughs. If not enough people sign up, they'll consider making them mandatory.
• Bloomington Pantagraph: 4-day furloughs by April 17 for hourly employees; 4-day pay cut for salaried employees (from comments)
• La Crosse Tribune and River Valley Newspaper Group: "Non-commission" employees must take 40 unpaid hours off between now and April (e-mail tip)
  

Are there others? Add them in the comments.