California Guilds endorse SB 1327 to support local journalism jobs
On April 30, 2024, Media Guild of the West’s Executive Committee voted to endorse California Sen. Steve Glazer’s Senate Bill 1327, pursuant to the April 4, 2023 membership resolution unanimously endorsing the California Journalism Preservation Act and similar measures.
On May 1, 2024, Media Guild of the West joined the Pacific Media Workers Guild and The NewsGuild-CWA in submitting the following letter of support for SB 1327:
The NewsGuild-CWA and its local unions, representing roughly 1,000 journalists working for dozens of California publications, support Senator Glazer’s Senate Bill 1327. The bill is an appropriate response to the local journalism crisis in California.
The sponsor’s office anticipates $500 million in new annual funding from SB 1327 to support journalism in California.
The centerpiece of the bill is a refundable employee hiring and retention tax credit designed to maintain and stimulate journalist employment in local newsrooms. Over the past two decades, many publications across California have cut journalist jobs or frozen wages, citing revenue shortfalls amid the collapse of the traditional advertising business. Fewer newsroom jobs means fewer journalists covering our communities and local government.
SB 1327 is well structured to stimulate newsroom employment while upholding fair labor standards. Publications get larger tax credits if they hire journalists and provide benefits. News companies with fewer than 10 employees get a larger credit than bigger news companies with more resources. Newsroom spending on freelancers is eligible for credits at a level that doesn’t disincentivize traditional staff employment. Grants to nonprofit newsrooms would be made based on the equivalent credits they would have received as a for-profit company.
The availability of these benefits to newsrooms regardless of medium or viewpoint reflects a strong commitment to supporting local journalism while honoring the principles of the First Amendment. This structure minimizes bureaucracy as well as the risk of government favoritism, discrimination or interference in our members' independent newsgathering and editorial decision making.
The tax credits would be funded by a Data Extraction Mitigation Fee based on the value that online platforms derive by extracting personal and economic data from internet users.
Massive tech companies have played a central role in the disruption and monopolization of the local and regional advertising markets that once supported robust local newsrooms. Consequently we think it’s only appropriate that these highly profitable platforms bear their fair share of the burden for helping restore some of the tens of thousands of local journalism jobs they displaced in our communities across the U.S.
The NewsGuild, a sector of the Communications Workers of America, is America’s largest union of journalists.
In Southern California, NewsGuild local Media Guild of the West represents journalists at the Los Angeles Times, Southern California News Group, Desert Sun and Long Beach Post.
In Northern and Central California, NewsGuild local Pacific Media Workers Guild represents journalists at San Francisco Chronicle, CalMatters, Bay Area News Group, the Sacramento, Fresno and Modesto Bees, the Press Democrat, the Cityside publications, Reveal and the Center for Investigative Reporting and other outlets.
Both NewsGuild locals are affiliated with Communications Workers of America District 9 and the California Labor Federation.
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Media Guild of the West is a local union of The NewsGuild-CWA, founded in 2019, that represents journalists at the Arizona Republic, Austin-American Statesman, Dallas Morning News, Desert Sun, Fort Worth Star-Telegram, Houston Landing, Long Beach Post and Long Beach Business Journal, Los Angeles Times, San Antonio Report, Southern California News Group, Texas Tribune and Phoenix New Times.