My thoughts on IHT report "LA Times workers sue parent co., CEO over mgt. ".
If the newspapers of the Tribune company had been puppies, Sam Zell would have been facing jail time hopefully right along side of Michael Vick.
As it is, this is not just about the employees though, as Zell, a right wing multi-billionaire is busy destroying a good number of major city newspapers and maybe some broadcast stations.
In LA we have sometimes been able to catch some information some of those who could no longer stand the atmosphere at the LA Times telling their tales, at the local NPR and Pacifica stations. It's not a heartwarming story.
And for what was the big Sam Zell deal? Business Week wrote on July 30, 2008 that Zell's manuevers might even cost the Tribune Company it's very life. (BW also notes that he put former Clear Channel execs in top posts just under him.)
According to the IHT report, the employees are upset about Zell's plans to sell off parts of the journalistic empire. (I believe they mean the news sources -- and indeed Zell has already sold off Newsday -- which he promised to keep together, rather than the Cubs that he had admitted he would sell before he bought the company).
Also, Zell leveraged the employee retirement program to invest in the company, and then has taken from the program to pay buyouts. In effect, because of their high level of investment, the employees became owners of the company, but as the plaintiffs note they have no control over the company.
At the time Zell was awarded his, another offer from a group headed by Ron Burkle, and Eli Broad two Los Angeles moderates who should have been first in consideration as Zell's deal, which was similar in monetary value, was a last minute offering.
Burkle and Broad did admit their plans to break up the behemoth company to allow local control of the news sources in it. Apparently the board who chose Zell over the Burkle and Broad group felt that being on the board of a huge corporation was better than being an ex-board member of a lot of restored journalistic treasures.
The suit also calls for the removal of the Tribune Company board. It couldn't happen to a more fitting group of folks.