Since invading Niagara
County late last century, Greater Niagara Newspapers has been putting
the lie to that old truism, "You get what you pay for."
Readers of the four GNN-owned dailies in the area haven't gotten their money's worth in years, nor have the dwindling pool of advertisers. Instead, both groups of customers have gotten what GNN and its parent company, Alabammy-based Community Newspaper Holdings Inc., have been willing to pay for. Which ain't much.
Since slithering into Western New York, GNN has slashed every department at every one of its newspapers, attempting to mask the cutbacks with fancy graphics and vapid packaging.
That, and making people work for free.
The policy of paying workers for 37.5 hours each week, no matter how many they actually put in, has long boosted GNN's bottom line. An expanding federal investigation into possible violations of federal overtime laws could cost the company far more than it has saved, however.
A recent complaint triggered a Labor Department probe of the last two years' worth of payroll records at the Tonawanda News. Citycide has learned that investigators are considering whether to expand the scope of the investigation to include the rest of GNN's properties -- the Niagara Gazette, Lockport Union-Sun and Journal and Medina Journal-Register and a handful of readerless weeklies that take up much of the local recycling-box capacity.
The Labor Department has contacted more than 100 former employees already, and is looking to talk to anyone who worked unpaid overtime in any department at any GNN-run paper, a source close to the investigation said.
"It's definitely a serious probe," the source said.
Settling such cases usually involves providing restitution to workers and former employees, as well as hefty fines. Given the widespread flouting of overtime laws since GNN acquired the various papers, the transgressions could wind up costing $1 million or more.
Other newspapers have defended such miserly policies by claiming "creative" work, such as reporting, photography and editing, is not governed by overtime laws. The Labor Department and federal courts have repeatedly disagreed.
A 2004 law mandates overtime protection to all workers making less than $455 per week, a lavish salary by GNN standards.
Coming on the heels of the spectacular million-dollar failure of the Current, GNN's woefully misguided attempt at an "alternative newsweekly," as well as the Buffalo News' unveiling of a Niagara County morning edition, such a penalty could jeopardize the future of one or more of the clustered papers.
It certainly doesn't bode well for GNN Publisher Wayne "Willie" Lowman, who figures to be shambling back to wherever he came from any time now.
Of course, the just-be-glad-you're-working policy predates Lowman's arrival. And, given CNHI's predilection for tiny papers in towns you've never heard of, which turn a profit on the backs of overworked, underpaid employees, a chainwide investigation is more than possible.
Former and current GNN employees who believe they've been shafted out of overtime pay can contact the Buffalo office of the U.S. Labor Department by calling 842-2950.
The Niagara Falls Reporter's annual monthlong fund drive to benefit Community Missions of Niagara Frontier Inc. started Monday, May 1, and the donations are already rolling in.
Founded in 1925 and inspired by a visit to Niagara Falls by evangelist Billy Sunday, Community Missions is perhaps best known for its soup kitchen on East Falls Street and the shelters it provides for people in need.
The organization also provides a number of other programs -- including much-needed support for people with mental illness, a residence for people with AIDS and family crisis services -- which will be profiled in the Reporter later this month.
Last year's drive raised more than $10,000, Reporter Publisher Bruce Battaglia said.
"We're looking to top that this year," he said. "We had donations ranging from $3 to $1,000 in 2005." Checks should be made payable to Community Missions and sent to the Niagara Falls Reporter, P.O. Box 987, Falls Station, Niagara Falls, N.Y. 14303.
At the conclusion of the fund drive, the newspaper will publish a list of the donors. More information on Community Missions is available online at www.communitymissions.org or by calling 285-3403.
A grand jury decided against indicting former Niagara County Democratic chairwoman Cindy Lenhart on election-fraud charges, but the fate of other party leaders remains uncertain.
Niagara County District Attorney Matt Murphy sent the case to the grand jury after Lenhart testified that she didn't remember seeing a number of people sign petitions for county Legislature candidate Bill Boulden, despite signing and notarizing them to indicate she had.
"I'm really disappointed that the district attorney succumbed to the bullying by the self-righteous zealots running the Republican Party in Niagara County," Lenhart told The Other Paper after learning she wouldn't be charged.
An interesting perspective, since Murphy is also a Democrat.
Lenhart resigned her party leadership post in March. The grand jury did not announce whether it may indict Boulden or other party members targeted by the investigation.
An even longer-running legal saga wrapped up last week when Judith Dale was sentenced to three years probation and 100 hours community service and ordered to pay another $15,000 in restitution to owners at Parkway Condominiums, where she served as manager.
Dale, who made a $15,000 restitution payment last month, was originally charged with stealing $42,000 in 2002 and 2003. While the original indictment charged that she used the money to buy cocaine, she denied that aspect and passed a court-ordered lie detector test.
Chris Kudela, who worked at the building as a maintenance man, said he sold cocaine to Dale and also passed a polygraph.
Dale, who was romantically linked with former Seneca Gaming Corp. chief Mickey Brown, is no longer living in the area.
| Niagara Falls Reporter | www.niagarafallsreporter.com | May 2 2006 |