The French answer to newspaper cutbacks

There is much coverage of press disruption in France as striking journalists at Le Monde stopped publication of the paper yesterday.It was only the second time in its history that the paper has not been published.

The issue,well something that will be familiar to many in the newspaper industry,job cuts.Management at the title are cutting 130 jobs or one in four journalists.

Philip Stone writing in Follow the media says that the action though shows a conflict in basic economics.Journalists are in the strange position of being shareholders in the Company,thus would also be beneficaries to any increase in profitablity.

Just two years ago and it seemed the newspaper’s financial future was secure. Lagardère, the French media and industrial conglomerate, bought a 17% stake and Prisa, the Spanish media group whose flagship is El Pais, took a 15% stake for a combined investment of around €50 million plus another €15 million came from assorted investors with the journalists still retaining overall control, so it seemed like one big happy family.
But the red ink kept flowing, the newspaper is in dire straits again, and the outside investors are basically saying that if they are being asked to invest more then they want control.

and as he explains

the journalists are still at the stage of wanting solutions where investors pour more good money after bad and still not have any financial control, Yes, it is very prestigious to say one has a holding in one of the world’s most most-appreciated newspapers, but in this day and age money speaks louder than words.

It seems as though the issue may well be not an economic one but one of editorial independence.Athouugh the unions will not accept compulsory job cuts they are willing to negotiate