AFL-CIO
March 05, 2003

Union Movement Says Media Monopolies Threaten Democracy

The AFL-CIO Executive Council warned that increased
consolidation of control of the nation's
media - newspapers, television, radio and
entertainment - poses a serious threat to America's
democracy. Corporate media interests are trying to
expand their power by pushing for deregulation of
current media ownership rules, and the union movement
will fight to safeguard the freedom of Americans to
receive independent, uncensored information, the
council declared at its winter meeting.

In what Federal Communications Commission (FCC)
Chairman Michael Powell called the most sweeping
regulatory action in agency history, the FCC is
considering lifting restrictions on media ownership
with an eye toward completely deregulating the nation's
media.

Saying the public's right to receive uncensored,
independently gathered information from various sources
is now in jeopardy, the AFL-CIO Executive Council
called on the FCC to retain the current ownership
regulations. The union movement also is supporting the
Competition in Radio and Concert Industries Act of
2002, introduced by Sen. Russ Feingold (D-Wis.), which
would increase competition in radio and entertainment.

The rules under review, and currently in effect,
prohibit one company from owning a daily newspaper and
a broadcast TV station in the same community and limit
the total number of radio and TV stations one company
can own in a community. The rules also bar a company
from controlling stations that reach 35 percent of all
TV households nationwide and prevent any of the four
major networks from buying another network.

Taken together, these rules help ensure diversity among
those who own and control media outlets, giving
Americans choices among many sources of information and
viewpoints. They also reduce the risk that news will be
censored by a few controlling interests, the council
said.

The AFL-CIO Department for Professional Employees and
affiliated unions in news and entertainment all have
warned that relaxing the rules would exacerbate the
growing trend toward consolidation in the media and
would lead to more corporate control over information
as media conglomerates gobble up smaller, independent
companies. "Local broadcast station contract
negotiations are generally conducted by corporate,
rather than local stations representatives, with
corporate demands taking precedence over local issues,"
American Federation of Radio and Television Artists
President John Connolly. "Our journalist members know
that their general managers often receive mandates
regarding the types of stories to be investigated and
reported. There are several examples of local stories
being "killed" because they dealt with topics that
corporate management did not want to see reported."

The Executive Council pointed to the explosive growth
of Clear Channel after Congress partially deregulated
radio in 1996. Since then, Clear Channel has bought up
hundreds of radio stations across the country.
"Described by many as the poster child for what's wrong
with media deregulation, Clear Channel has been the
target of anti-trust suits, FCC fines for payola
violations (making undercover payments to radio
stations to play CDs from artists promoted by Clear
Channel subsidiaries), Senate oversight hearings and
legislation introduced to outlaw some elements of this
radio giant's repertoire of abusive practices affecting
the music industry and performing artists," the council
statement said.

A recent study by the Project for Excellence in
Journalism (PEJ) showed that growing consolidation in
the news business has led to a serious decline in the
quality of local news, as distant corporate media
executives demand cuts in news budgets to boost
profits. Corporate dominance of local newspapers and
broadcast stations also has led to a drop in coverage
on consumer, environmental, minority and labor issues
and the quality of news coverage - "as media owners
play to their bottom line - reduced cost -  and their
-usiness advertisers," the council said.

At the same time, consolidation has led to an assault
on jobs in news and entertainment. Since 2000, about
70,000 media workers have been laid off. In radio,
employment has dropped by 7,000 in two years after 20
years of continued growth.

In our democratic society, the council said, media
ownership matters. "It matters because ultimately it is
the deciding factor that determines what working
families are able to consume in news, entertainment and
information. Most importantly, it matters because an
informed public is the bedrock of our free and open
society."

Copyright © 2003 AFL-CIO