PNI Execs Got Bonuses Before Bankruptcy

PHILADELPHIA - The owners of the Philadelphia Inquirer and the Daily News are seeking bankruptcy protection but still handed out bonuses to top executives.

And published reports claim the company owes the city of Philadelphia $450,000 in taxes.

Fox 29's Julie Kim reported that those who work at the paper feel, in a word, hoodwinked because the newspaper union voted to delay $25-a-week pay raises when company officials approached them in crisis last year.

The presses keep rolling at the city's two largest papers, but those who chronicle the city's ups and downs are roiling in resentment.

Bill Ross, of the Philadelphia Newspaper Guild, described feeling "betrayed, disappointed, outraged."

Philadelphia Newspapers Inc., the parent company of the Inquirer and the Daily News, filed for chapter 11 bankruptcy in February.

As the company figures out how to refinance in court, it seems there's no problem in financing the pockets of those high on top, Kim reported.

Philadelphia Magazine reported that Brian Tierney, the newspaper company's CEO, and other execs got hundreds of thousands in holiday bonuses in December. That was right before they filed for bankruptcy and after they asked the 850-member newspaper guild to help them cut costs.

"It's this type of corporate chicanery that goes on that has everyone in our country upset right now," Ross said.

The magazine reported that Tierney got $350,000.

Lawyers representing PNI confirmed for Fox 29 News that there were bonuses given to Tierney and other executives but did not give a figure.

Just last month, Tierney gave back hundreds of thousands in raises after a huge uproar.

Back then, the union said it wasn't concerned so much about Tierney's pay, but more concerned about saving jobs.

"Everything that they have said so far indicates that they intend to work with us, you know, and honor the contract," said Dan Gross, a Daily News columnist and newspaper guild official, said in February.

This, however, is a business that deals with words and, as reporters know, you can only burn a source once.

"Do the right thing. Maybe they should give the bonuses back," Ross said.

The guild's contract is up in August, and the union's leadership said it plans to renegotiate next month. They said they will demand their raises and more.

Fox 29 News reached out to Tierney for comment but did not hear back from him directly.

Philadelphia Media Holdings, which owns the newspaper company, did respond Tuesday afternoon by saying in part, "There was no knowledge of the bankruptcy in December 2008 despite comments by the Newspaper Guild. Also, contrary to wire service reports, there was only one (the Newspaper Guild) of our 14 unions which complained about reported salary or bonus increases."

Link: Philadelphia Media Holdings' Complete Statement