Teamsters Testify at FCC Hearing

Teamsters Testify at FCC Hearing

Union Calls for Strengthened Public Interest Protections

PORTLAND, Maine, June 28 /PRNewswire-USNewswire/ -- The International Brotherhood of Teamsters will testify today at a public hearing hosted by the Federal Communications Commission (FCC) to urge the Commission to consider how media ownership structures can affect the fundamental FCC concerns of localism and diversity and present opportunities for the FCC to enhance the public interest when drafting its new rules.

"The terms of the proposed buyout of the Tribune Company, which will transfer ownership of the $8.2 billion media conglomerate to an Employee Stock Ownership Plan but control to one investor, underscores a growing need for the FCC to ensure protections of local and diverse viewpoints in its broadcast ownership rule making," said Teamsters General President Jim Hoffa.

In the proposed Tribune (NYSE:TRB) buyout, ownership of the company, including its 16 newspapers and 23 television stations, will be transferred to an Employee Stock Ownership Plan (ESOP). The ESOP, will own 100 percent of the company and be responsible for paying the billions of dollars of new debt incurred in the transaction while, real estate entrepreneur Sam Zell, will serve as the Chairman of the Board and effectively control the $8.2 billion company. Tribune's employee-owners will have no voice in the governance of the ESOP or the operating company.

"Although called an Employee Stock Ownership Plan, employees will have few real ownership rights," Hoffa said. "If given a chance, Tribune employee- owners could play a crucial role in enhancing localism and diversity for the benefit of the public served by the Tribune. These 21,000 individuals -- some of them Teamsters -- spread across the country, live and work in the areas that Tribune's broadcast properties serve and could provide a meaningful and diverse perspective to Tribune's programming and operations that would be responsive to the concerns of the local communities. Such a perspective is particularly important, when the FCC is being asked to extend the Tribune's cross-media ownership waivers."

The International Brotherhood of Teamsters represents 1.4 million members, including approximately 2,000 who work for Tribune. Tens of thousands of Teamster members and retirees reside in Tribune-served media markets located coast-to-coast. Teamster members' livelihoods, economic wellbeing, and their access to a diversity of news and opinions on public events depend on the outcome of this change in ownership.

The International Brotherhood of Teamsters has filed comments with the FCC urging the Commission to insist that localism and diversity concerns be sufficiently addressed before approving the transaction.

"We urge the Commissioners also to address the types of concerns raised by the Tribune change of ownership and waiver applications, in the FCC's ongoing broadcast ownership rule making," Hoffa said.

Founded in 1903, the Teamsters Union represents more than 1.4 million hardworking men and women in the United States and Canada.

Source: International Brotherhood of Teamsters

CONTACT: Galen Munroe of the International Brotherhood of Teamsters,
+1-202-439-7427

Web site: http://www.teamster.org/

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Profile: International Entertainment