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The Newspaper Guild-CWA Tells SEC: Scripps Annual Report Misleads Shareholders on Labor-Management RelationsWASHINGTON, April 7 /PRNewswire/ -- Statements made to shareholders in the E.W. Scripps Company's annual report are "false and misleading" regarding the media company's relationship with many of its union-represented workers, The Newspaper Guild-Communications Workers of America (TNG-CWA) charged today in a letter to the Securities and Exchange Commission. In filing its 2004 annual report with the SEC, Scripps said, "We consider our relationships with our employees to be generally satisfactory." The company said further that its only pending litigation is "in the ordinary course of business" and proceedings relating primarily to the "renewal of broadcast licenses, none of which is expected to result in material loss." In the letter, TNG-CWA Secretary-Treasurer Bernard Lunzer details a labor dispute at The Commercial Appeal in Memphis, Tenn., and legal action the paper has taken against the union. "As shareholders and representatives of the workers at E.W. Scripps Company newspapers, we urge the Securities and Exchange Commission to insist that E.W. Scripps qualify the statements it made in 2004 Form 10-K with the facts and information necessary to make the statements not misleading," Lunzer wrote. "While there is not yet a work stoppage at The Commercial Appeal, we submit that it is misleading to claim that there is a 'generally satisfactory' relationship with employees, and that the lawsuit against the union is 'in the ordinary course of business.'" The Guild has represented employees at the Memphis newspaper since 1936, with members in editorial, commercial business, advertising, maintenance and transportation departments. The unit's most recent bargaining agreement expired more than a year ago, Jan. 10, 2004, but included an "evergreen clause" common in newspaper union contracts. Under the evergreen provision, the previous contract and all arbitration rights remain in effect while a new contract is negotiated. Management and labor in Memphis have operated under an evergreen clause for more than 50 years. Now, however, The Commercial Appeal has filed action in federal court challenging both the evergreen clause and management's obligation to arbitrate disputes. "The labor relations between these parties have been completely changed by this extraordinary attack on the arbitration process," the letter states. "The litigation, now in the discovery phase and slated for trial in the fall of 2005, constitutes a significant change in the 69-year relationship between these parties, which might be considered important by a reasonable investor." The Guild is requesting a response from the SEC prior to the Scripps shareholder meeting April 14 in Cincinnati. The Newspaper Guild-Communications Workers of America CONTACT: Jeff Miller or Candice Johnson of CWA Communications,+1-202-434-1168 Web site: http://www.cwa-union.org/ |