CEP - Communications, Energy & Paperworkers Union of Canada

Fri Sep 4 2009
Source: Times Colonist

The lights are staying on for CHEK TV with the signing Friday of an employee-led deal to buy B.C.'s oldest private television station from Canwest Global Communications.

Union and non-union workers banded with a group of investors to save the station, originally slated to close on Aug. 31.

"It's been a tough three weeks of roller coaster rides for us. Last Friday, we thought we were dead in the water. This Friday, we are running the boat," said John Pollard, station manager.

The sale is expected to save 45 local jobs. A few employees decided to leave the station and take severance, but the majority are staying, he said.

Reporter Bruce Kirkpatrick, 61, has been with CHEK 37 years, and said he's not ready to retire. He called the sale, "an absolute triumph."

Canwest is providing transitional support, such as use of its television control room in Vancouver, programming and a lease for CHEK's Kings Road building at favourable rates.

A television station sale normally takes up to eight months, but this was done in the past week, said Pollard, adding that Canwest dedicated dozens of people to make this happen.

Leonard Asper, president and CEO of Canwest, said in a statement: "Many dedicated individuals on both sides of the table came together and the result is that it has preserved jobs and service in the community ... The real winners are the people of Vancouver Island and the Lower Mainland who will continue to receive this valuable local service."

The key to concluding the sale is approval from the Canadian Radio- television and Telecommunications Commission for change of control and a new licence. "They (the CRTC) have agreed to render a decision on our application within 30 days, which is unprecedented," said Rob Germain, news director.

Canwest said the undisclosed purchase price was "nominal."

Earlier this year, Canwest put its smaller stations, including CHEK, up for sale. The stations have been losing money since 2000, the company said. In July, Canwest, also owner of the Times Colonist, announced CHEK would close Aug. 31 if a buyer didn't step forward.

Hundreds of people showed up for CHEK's parking lot celebration Aug. 31 to mark its more than 50 years in Victoria. A bid from the local investor group had not been accepted the previous week but talks were extended until yesterday and CHEK continued to operate after investors agreed to cover losses during that time.

A total of $750,000 was raised from union and non-union staff, Pollard said.

He would not say how much has been raised from investors and Pollard will not yet identify other investors. Germain said investors are a diverse, Island- based group.

Levi Sampson, president of the Harmac pulp mill near Nanaimo, which was saved from closing through a similar model, has advised CHEK employees. Sampson and his father, Edward Sampson, CEO of Calgary-based Niko Resources, holder of international oil and gas interests, are on Harmac's board.

On Friday, Levi Sampson said the family company that is part of Harmac would not be involved with CHEK but that he is not ruling out a personal investment.

Richard Konwick, CHEK assignment editor and president of the Communications, Energy and Paperworkers Union of Canada, Local 815M, said the union is becoming a shareholder. The union also provided more than $100,000 of interest-free loans so members could buy into the station.

Last month he said that full-time workers would contribute $15,000 and part- time staff $7,500.

The labour contract remains in place, with a year to run. However, the decision was made to go forward without a pension plan.

Saanich-Gulf Islands MP Gary Lunn flew to Winnipeg last month to speak with Leonard Asper in person and continued to lobby for the station's survival. Canwest was "fantastic" and "the employee group here believed in themselves," he said.