Open Letter on Postmedia’s Abuse of Canadian Taxpayers’ Money

Postmedia Network Inc. [“PNI”] is Canada’s largest newspaper chain. 

The company receives millions of dollars in government funding through the Canada Periodical Fund, the Canadian Journalism Labour Tax Credit, and the Local Journalism Initiative – plus millions more from the Google media fund.

Sixty-three per cent of Postmedia is owned by Chatham Asset Management, an American hedge fund with ties to the MAGA Republican Party. Another fourteen per cent is owned by another American billionaire hedge fund investor. 

Last spring, Postmedia reported debt of $364 million, most of that in high-interest bonds held by Chatham, which can sell off those bonds as securities.

The most shocking part of this corporate set up is that it allows Postmedia to send tens of millions of dollars to its American masters every year, while at the same time crying poor and in need of money from the Canadian government.

What does Canada get out of this?

• A marked decline in quality journalism and local news coverage.
• Fewer jobs in newsrooms, sales, and production across the country.
• Punishing working conditions and overworked employees.
• Low salaries that make it difficult to hire and keep staff.
• Paltry wage increases below inflation, which leave workers worse off every year.

What else do we get?

• The largest national newspaper chain serving as a high-interest debt factory for an American hedge fund.
• Overpaid corporate executives. In 2024 alone, CEO Andrew MacLeod was given a 16 per cent increase over his 2023 pay, amounting to a $1.6 million raise. In one year! 

That might make sense if the company was growing its news operation and audience. But perhaps Postmedia is functioning exactly how its American owners prefer – borrowing money from them at inflated interest rates and then sending every penny earned into their pockets.

The Canadian government needs to take a hard look at what’s going on here. 

If Postmedia gets Canadian subsidies, it should be required to use every penny of that money on news content, creating jobs, and decent pay for its workers. The money must not go to executive compensation or to fund an American financialization scheme.

No more funnelling our money to the boys in the backroom in another country.

Carmel Smyth

President, CWA Canada

The Media Union

And CWA Canada’s Post Media Caucus representing workers in these locations:

Halifax, Regina, Montreal, Ottawa, Kingston, Sudbury, North Bay, Sault Ste. Marie, Moncton, Charlottetown, Sydney.