Union-Tribune Follow-up: A Response
Posted on June 2nd, 2009 by Tim Eavenson | 2 Comments »Filed under: ., Labor Law |
In response to the story I posted about the LA Police Protective League asking its private equity fund, Platinum Equity, to oust the editorial staff of the newspaper it acquired, I got the following email from Eric Rose at Englander & Associates, the PR firm working with the LA Police & Fire Union, along with a copy of the original letter sent to Platinum (linked here).
Here is Mr. Rose’s response:
You are right, The Los Angeles Police Protective League raised some eyebrows across the state by calling for replacement of the editorial staff of the San Diego Union -Tribune. Who is a law enforcement labor organization to ask for such an action, and why did they ask for it?
First, like so many police officers, the men and women of the Los Angeles Police and Fire Departments are now part owners of the San Diego Union-Tribune by virtue of the investment of $35 million of their retirement dollars into Platinum Equity, the private equity fund which bought the Union-Tribune. They joined other public employees such as school teachers in Pennsylvania, Louisiana and New Mexico in providing the investment capital for Platinum Equity.
The Union-Tribune Editorial Board is one of the most vociferous anti-public employee pages in the State. A prime example is its near weekly attempt to lay all financial woes in the state at the feet of public employees with little regard for the facts. A case in point is the current issue with respect to pension funding.
Never once does the editorial page mention that a main cause of pension fund shortfalls across the state was the failure by public entities to make annual required contributions to their pension funds. The diverted funds were used for other projects, depriving pension funds of money when the stock market was rising and the money invested with the most impact.
Take the City of San Diego as an example. The Union-Tribune’s own staff reporters (not its opinion writers) found the problems began in 1996, when instead of contributing to the pension fund, money was diverted to pay for the costs of the 1996 Republican National Convention and expanding Qualcomm Stadium. An independent auditor wrote that City officials encouraged reducing the “flow of money to the City’s pension system in order to benefit the City while creating no compensating benefit for the City Pension system.”
Where was the “watchdog” Union-Tribune Editorial Board when these shenanigans were going down? Partying like there was no tomorrow. The Union-Tribune’s $500,000 party on San Diego Bay during the Republican Convention is still remembered as a highlight of the event. Strangely, no editorials were written questioning the wisdom of diverting pension fund money to subsidize the Convention’s cost.
Likewise, nary a word was heard from the Union-Tribune’s Editorial Board when in the late 1990′s the County of San Diego went nearly six years without making a payment, over a full payment to the contribution system. Nor were there concerned editorials when during the same time period the State, as well as numerous cities and counties, went four years without making annual contributions to CALPERS—or when starting in 1990, the State went 18 years without paying any money into the UC pension system.
No, in the eyes of the current Editorial Board, it is only “overpaid” police officers, fire fighters, teachers and other public employees who are responsible. Real solutions will require all of us to work together. America is the greatest nation on earth and has overcome two world wars, financial depressions, and countless other challenges with our greatest assets-our willingness to work together and our ingenuity.
The editorial position of the Union-Tribune fairly represented the views of its owners prior to the purchase by Platinum Equity. It’s repeated bashing of police officers, firefighters, teachers and other public employees doesn’t represent the views of its current owners. And, if you think that editorial pages don’t reflect the views of their owners—-how many editorials have the Times written critical of Sam Zell and the ripple effects from his financial problems after he bought the Times?
Public safety employees will not tolerate the continued attacks of our dutiful law enforcement, firefighters and teachers who have invested their lives and in some cases given their lives in serving our communities. As investors in Platinum Equity, it is our responsibility to uphold the promises we have made to our various members and vigilantly protect them from undue attacks.
It is obvious that their constant criticisms and abhorrence of public employees will continue and, they have no intent to be part of the solution. It is for these reasons that the LAPPL on behalf of the public safety community asked the leaders of Platinum Equity to replace the editorial staff of the Union-Tribune with people who will offer balanced, well reasoned, and solution orientated pieces.
CE obviously doesn’t have a dog in this hunt, but if you want to take sides on any of the myriad issues here (free press, union/equity ownership, etc.), feel free to have it out in the comments.
Investing in a private equity fund does not make you an owner of the private equity fund’s acquisitions. Investment is a monetary tool, nothing more, notthing less. If unions or pension funds or whoever want to control companies, they should take the $35 million and buy a company.
7:12 am on June 3rd, 2009.
Thanks for the useful info. It’s so interesting
12:42 am on June 11th, 2009.