Falling advertising revenues at all major private sector media companies have resulted in employees being laid off. The largest publicly owned media company, the CBC, which depends in part on ad revenue, has not announced any layoffs.
The major newspapers (the CanWest Group, the Globe and Mail, the Toronto Star) announced a significant round of layoffs last fall . Declining ad revenues were given as the reason. At the same time the two largest private television networks (CTV and CanWest) reduced employment levels for the same reason.
The majority of the funding for the CBC comes from taxpayers in the form of an annual appropriation from Parliament. The English- and French-language television networks of the CBC also generate hundreds of millions annually in ad revenue. It's hard to conceive that the CBC's ad revenues have not declined in the current recessionary environment.
A reasonable question from the owners, the taxpayers, is why no layoffs at the CBC? Given the poor performance of the CBC on a recent audit of government agencies' responses to freedom of information requests (it ranked last among federal agencies with a grade of D), it is unlikely that taxpayers will receive an answer anytime soon. (see the end of this post for a link to the audit).
Based on the CBC's history, this is what could be in play. Except for senior management, virtually all employees at the CBC are unionized. The unions are militant and powerful, in large part because the CBC is primarily funded by taxpayers, and is relatively immune from the discipline of the competitive market.
The CBC unions may have been given a no layoff clause in their contracts. If that is the case, it will be further evidence of the two-tier labour market in Canada. The top tier is the public sector with higher pay and benefits compared with the private sector, not to mention virtual job security. The lower tier is the private sector where all the layoffs in the current recession have taken place (see my post of January 15).
Note: Here's the link to the freedom of information audit. http://www.cna-acj.ca/en/system/files/CNA%20National%20Freedom%20of%20Information%20Audit%20-%202008_0.pdf
It was carried out for the Canadian Newspaper Association. The results for the CBC are shown on page 19.
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Write on, bro! Your scathing attacks on unions are just the sort of clear thinking that continues in such short supply these days. I look forward to your investigation into the unwarranted inflated salaries and "iron rice bowl" job security that plagues Canadian executive suites.
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