M E D I A  U N S P U N
What the Press is Reporting and Why (www.mediaunspun.com)

Tuesday, September 3, 2002

Top Spins...
Labor's Love Lost
Bertelsmann Beats a Retreat
Other Stories

Editor's Note

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Labor's Love Lost

Ah, Labor Day. The holiday that honors unions and the American worker. And what an ironically mediagenic Monday it was in 2002. From corporate abuses to stagnant unemployment, this just isn't what the AFL-CIO had in mind.

"With dockworkers, janitors, and Boeing employees threatening major strikes and employees reeling from corporate scandals and rising unemployment, the mood among American workers has turned anxious and even angry this Labor Day," said the New York Times. A slew of studies and surveys popped up everywhere to attach numbers to the misery. One institute found that the income gap between the rich and the poor was growing again. The Boston Globe reported 500,000 jobseekers will run out of employment benefits in the next two months. The U.S. Census Bureau said Americans spend an average of 1,900 hours per year at work. "That's 20 more days each year than a quarter century ago," said the Denver Post, "and more than any other advanced nation, including Japan -- which embodies industrialism."

What can Americans expect in return for their workaholism? How about ... a pat on the head? "Not only are the aggressive employee recruitment tactics of the late 1990s long gone, more basic employee perks such as raises and bonuses are also under pressure," said CNN. An outplacement expert told the Mercury News that employees shouldn't even take all their meager vacation time this year, because they should be trying to save their jobs by any means necessary. Merc columnist Mike Cassidy rubbed it in by announcing that he'd had Labor Day as a paid holiday.

Speaking of rubbing it in, employed people like economists and beat reporters matter-of-factly told us not to expect miracles this fall. Layoffs often worsen the last four months of the year, and jobseekers who got discouraged and "took the summer off" will be back in action this week. The Boston Globe said economists "agree there will be no real improvement in the job market until next year." The Baltimore Sun shocked no one by reporting, "This Labor Day, job seekers are more likely to find that it takes longer to find work, the pay may not be as much, and the competition is greater." Sounds suspiciously like last Labor Day. The Seattle Times was more graphic. "Flaws that were once tolerated -- limited experience, perhaps, or a history of job hopping -- are now causes for rejection," said the Times. "Even people with seemingly perfect credentials are vulnerable."

While employees hyperventilated, union organizers got one small victory. A survey showed that for the first time since 1984, half of non-union workers polled would join a union. Heck, if it got us job security, paid holidays, and a 40-hour work week, we'd join the circus. - Jen Muehlbauer

Unease marks Labor Day '02 (New York Times)
http://www.bayarea.com/mld/mercurynews/news/nation/3987298.htm

With Many Chasing Few Jobs, Misstep Can Blow Offer (Seattle Times)
http://makeashorterlink.com/?G64823DA1

Lucky Enough to Have a Job? If You Do, Labor to Keep It
http://www.siliconvalley.com/mld/siliconvalley/3990332.htm

Americans Laboring 1,900 Hours a Year (Denver Post)
http://makeashorterlink.com/?G25852DA1

Jobless on Labor Day
http://money.cnn.com/2002/08/30/news/labor/index.htm

Corporate Mess Sparks Union Interest (CBS Marketwatch)
http://makeashorterlink.com/?T57812DA1

Bush Courts Labor on Labor Day
http://www.washingtonpost.com/wp-dyn/articles/A25538-2002Sep2.html

Jobs Jitters On Labor Day Weekend (AP)
http://www.cbsnews.com/stories/2002/08/30/national/main520414.shtml

Job Seekers Face Tougher Market, Analysts Say
http://www.sunspot.net/business/bal-bz.work02sep02.story

A Deadline Looms for the Jobless (Boston Globe)
http://makeashorterlink.com/?U28812DA1


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Bertelsmann Beats a Retreat

The German media conglomerate Bertelsmann, paralleling its French counterpart Vivendi, recently sacked its new-media champion CEO and is retrenching money-losing Internet investments. Only a month ago Bertelsmann ousted Thomas Middelhoff and inserted Gunter Thielen, an old-fashioned manager who expresses a penchant for operations that actually make money. Taken all together, reports from the Labor Day weekend imply that Bertelsmann is or may be considering selling or abandoning some or all of Napster, Bol.com, BarnesandNoble.com, BeMusic, and CDNow.com.

Everyone agreed that Bertelsmann is in talks with Amazon about buying Bol.com. The New York Times' source cautioned, "There are talks; there is contact. I'm not saying there are negotiations." InternetNews and The Register reported hints of other (unnamed) potential buyers. The Wall Street Journal added concreteness by noting that Bol's annual take, at $88.6 million, is about half that of Amazon's book operation, and that the Bertelsmann operation lost about $29.7 million last year.

Most outlets agreed that Bertelsmann may eventually let go of its investment in the joint venture BarnesandNoble.com, but that any such deal was of lower priority than cutting loose Bol.com. The Times, however, reported that a sale of the separately managed BarnesandNoble.com is not planned. The Times also said that "Bertelsmann denied reports" it will sell BeMusic and quoted a source who claimed that CDNow is not "on the agenda."

And as for Napster -- it's dead, Jim. A court will decide today whether or not to let Bertelsmann buy its assets out of bankruptcy. Even if that deal goes through, the Times claimed that Napster "faces a dim future at Bertelsmann" -- unlikely to get funding in the new austere environment, it would either be folded into another division or closed. A Slashdot poster supplied a suitable epitaph: "I mean, wow. Napster officially dead. Yay. Who noticed?" - Keith
Dawson

Bertelsmann Talks to Amazon.com About Sale of BOL.com
http://www.nytimes.com/2002/09/03/business/media/03BERT.html

Bertelsmann to 'pull Napster plug'
http://www.theregister.co.uk/content/6/26907.html

Bertlesmann to Sell bol.com; Talks Held with Amazon.com
http://online.wsj.com/article/0,,SB1030914256314625355,00.html
(Paid subscription required.)

Bertelsmann may dump Web units (Reuters)
http://news.com.com/2100-1023-956225.html

Bertelsmann untangles itself from the web
http://media.guardian.co.uk/city/story/0,7497,784847,00.html

Bertelsmann Selling E-Commerce Assets
http://www.atnewyork.com/news/print.php/1455471

Bertelsmann Looking At Pulling Plug On Napster
http://slashdot.org/article.pl?sid=02/09/02/1238230


Other Stories

Where Are They Now?
http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=209303

A Bitter Feud Erupts Over Hershey Plant
http://www.washingtonpost.com/wp-dyn/articles/A24218-2002Sep1.html

Firms Accused of Chicanery Could Get Windfall From IRS
http://online.wsj.com/article/0,,SB1031002463438531435,00.html
(Paid subscription required.)

Hawaiian Language Advocates Applaud New Mac Operating System (AP)
http://www.siliconvalley.com/mld/siliconvalley/3989242.htm

Wanna Bet?
http://www.nytimes.com/2002/09/01/weekinreview/01WORD.html

Accounting for Failures Of the Telecom Industry
http://online.wsj.com/article/0,,SB1030994381860062515,00.html
(Paid subscription required.)

Baseball Cracks Down on Web Sites
http://www.nytimes.com/aponline/sports/AP-Baseball-Fan-Sites.html

Citibank's E-Mail Data Offer Raises Online-Privacy Concern
http://online.wsj.com/article/0,,SB1030997040617895555,00.html
(Paid subscription required.)

Microsoft flashes a new wallet
http://news.com.com/2100-1017-956187.html

Microsoft 'patches' tear at computer users' good will
http://seattlepi.nwsource.com/business/85063_patch02.shtml

You're not paranoid, you are being watched
http://www.msnbc.com/news/800957.asp


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Staff
Written by Deborah Asbrand (dasbrand@world.std.com), Keith Dawson (dawson@world.std.com), Jen Muehlbauer (jen@englishmajor.com), and Lori Patel (loripatel@hotmail.com).

Copyedited by Jim Duffy (jimduffy86@yahoo.com).

Marketing: Cowpoke Productions (cowpokeproductions.com).

Advertising: Erik Vanderkolk (erikvanderkolk@yahoo.com).

Editor and publisher: Jimmy Guterman (guterman@vineyard.com).

Media Unspun is produced by The Vineyard Group Inc.
Copyright 2002 Media Unspun, Inc., and The Vineyard Group, Inc.
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