Employees of The McClatchy Company, which operates The Miami Herald and dozens of other newspapers, will not receive 401(k) matching funds for 2012—a repeat of what happened to them in 2011.
“We often get asked when the 401(k) match will be reinstated,” said a Monday email to the company’s staff obtained by Romenesko. “Although reinstating a company match is a priority, the company’s financial performance must improve before we can start making matching contributions once again. For now, we will continue to closely monitor the company’s profitability to determine when we can reinstate the 401(k) match.”
McClatchy made the decision to withhold 401(k) benefits in response to falling earnings, an epidemic across the traditional newspaper media. But while much has been said and written about the difficulty of turning a profit in today’s journalism world, the labor side of things has been largely ignored. The news media’s current economic climate doesn’t just shrink newsrooms and kill magazines: it also reifies professional class barriers, making it tougher for aspiring journalists from working-class backgrounds to obtain steady jobs or big soapboxes.
McClatchy’s benefit cuts are a good example of how this dynamic plays out. By eliminating 401(k) matching payments indefinitely, the publishing company effectively raises the cost of being an employee, placing the burden on those workers whose retirement funds are not already secured. But most journalists face much more overt weeding out mechanisms well before they have a full-time job—in college, for example. Future success in journalism, as in so many professions, can depend heavily on attending the right school and making the right connections. As Dana Goldstein wrote in 2009, “In some fields, like political ‘think’ journalism, the Ivy League schools are grossly overrepresented. (Yep, that includes me. I went to Brown.)”
The news media is also one of the industries that has come to rely most heavily on unpaid intern labor—both to perform roles previously delegated to full-time staff, and to serve as a potential hiring pool for the occasional full-time job. Oftentimes, one unpaid internship isn’t sufficient; college students and recent grads are instead locked into a perpetual arms race to amass more credentials in the vain hope that they may one day be adequately compensated for their labor. The advantage, of course, goes to those young adults who are privileged enough to be able to eat and pay rent while working for free as serial interns.









