Journal Reporters Stage Protest Against Murdoch

By SETH SUTEL The Associated Press

Published: Jun 29, 2007

NEW YORK - Unionized Wall Street Journal reporters didn't show up for work Thursday morning to protest Rupert Murdoch's bid for the Journal's parent company, as well as Dow Jones & Co.'s proposals for a new labor contract.

The half-day walkout, which lasted until 2 p.m., had very high participation by members of the Independent Association of Publishers' Employees, which represents all Journal reporters around the country, said E.S. Browning, a stock market reporter who heads the union's bargaining committee.

Union President Steve Yount said the employees were concerned about the pending $5 billion offer from Murdoch's media conglomerate News Corp. as well as the latest contract proposals from Dow Jones, which include higher health care premiums.

The union and a former board member at Dow Jones say the Journal's independence and quality would suffer under Murdoch's ownership, something Murdoch denies.

Murdoch's Plans

Murdoch has said he plans to invest in the paper's online operations, Washington coverage and expand overseas. He also hopes to tap Dow Jones resources to launch a Fox-branded business news cable channel later this year.

Despite the Journal's longstanding prestige and clout in the business world, Dow Jones remains a relatively small company in the media landscape. News Corp.'s operations span the globe, with newspapers in England, Australia and the New York Post as well as the Fox network, Fox News Channel and Twentieth Century Fox movie and TV studio and MySpace.

Dow Jones also has lagged behind Bloomberg LP and Reuters Group PLC in providing real-time financial news. To make matters worse, Reuters recently agreed to be acquired by Thomson Corp., a major provider of electronic information services to legal and financial professionals, creating an even larger rival.

No Contract Since March

The union has worked without a contract since late March, about the time Murdoch approached Dow Jones.

Murdoch's interest became public in early May, and the company's controlling shareholders, the Bancroft family, initially rejected his overture.

They have since softened their opposition to Murdoch's offer, which many on Wall Street believe is too high to be matched by other bidders. Murdoch's $60 per share price is a staggering premium of about 65 percent above the mid-$30s level Dow Jones shares were trading at prior to his offer becoming public.

The union represents all U.S.-based reporters at the paper but not columnists, overseas employees or managers.

A Dow Jones spokeswoman declined to comment on the walkout but said the action wouldn't interrupt publication. A News Corp. spokesman declined to comment.

Dow Jones and News Corp. have reached an agreement in principle over the Bancrofts' main concern - that measures be put in place to protect the editorial independence of the Journal. But some details have yet to be worked out.

The Bancrofts can reject a deal. The family owns 25 percent of the company but controls 64 percent of the shareholder vote through a special class of supervoting shares.