‘Where’s my pay?’Five Eastern Cape newspapers in trouble just three months after sale

Salaries at five newspapers in the Eastern Cape went unpaid last week with publishing under threat should the issue not be resolved soon. Staff at some of the oldest news publications in the country are deeply worried about their futures and financial security after they reportedly did not receive a salary this month. The sale of five newspapers in the Eastern Cape was confirmed earlier this year, with the new management allegedly already running into financial difficulties. An estimated 80 staff at national dailies the Daily Dispatch in East London, The Herald in Gqeberha, and three community papers serving East London, Queenstown and Port Alfred are all affected. Arena Holdings sold the five publications to Ubuntu Media Holdings earlier this year, with the sale effective from 1 May. A senior staff member based in East London spoke to The Citizen on Wednesday on the condition of anonymity. They said that communication had been limited, but that even senior-level management seemed unaware of any impending challenges. “So far, we’ve received a few e-mails advising us that the issue is not yet resolved. C-level management acted surprised when the money wasn’t paid on Friday. “Particularly concerning is that ‘the board’ – we don’t really even know who the new board is – only met for the first time on Tuesday,” the source explained. Staff reportedly had no forewarning of the looming crisis, with the previous owners now seemingly unable to assist. “We have repeatedly been told that the new company was financially secure. “The worst is the uncertainty. What we want more than anything is honesty, transparency and some form of commitment,” they said. ‘Boardroom battles’ hurting staff The source stated that a gradual handover period for the takeover had been communicated. “We were told that the new company had taken ownership but that there would be a three-month transition period until July 31 during which time we would remain under Arena. “Subsequent legal communication from Arena on the subject asserted that the two companies had engaged over this issue a week prior to the salary non-payment. “Arena has also distanced themselves from the issue as they are obviously no longer the business owners,” the source explained. CEO of Ubuntu Media Holdings is Bongani Siqkolo, former editor of the Sunday Times. When contacted by The Citizen on Wednesday evening, Siqkolo said that he was unable to comment on the matter at this stage. The South African National Editors Forum (Sanef) urged media employers “to put journalists first” and appreciate the societal importance of news publications. “The boardroom battles should not be an issue that affects workers, particularly if such meetings are not communicated to the workers regarding any progress made. “Sanef has reached out to Ubuntu, and an undertaking has been made that the issue is being attended to and would hopefully be resolved soon,” Sanef stated. Historically significant newspapers The Daily Dispatch was founded in 1872, while The Herald is even older, having first been published in 1845. The Rep was first published in Queenstown in 1859, making it one of the oldest regional publications in the country. The staff continue to work, but resources are low as many of the junior staff reportedly scrape by month to month. “No editions have been missed at this time, but staff morale is very low and about half of the staff are unable to work as they don’t have money for fuel or data to work from home. “If this isn’t resolved before next week, I can’t see that we’ll be able to print,” the source concluded.