Union Files Unfair Labor Practice Charge Against Sports Illustrated Publisher

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ICARO Media Group
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29/01/2024 19h47

In a recent development, the union representing the staff of Sports Illustrated has filed an unfair labor practice charge against the magazine's publisher, the Arena Group. The charge alleges that the publisher engaged in illegal union-busting tactics by sending layoff notices to all unionized staff members. The complaint, which was reviewed by The Washington Post, claims that the layoffs were targeted at employees who supported the union's engagement in protected activities.

The layoffs have dealt a devastating blow to the iconic 70-year-old sports journalism magazine, which was once renowned for setting the standard in the industry. Nearly all Sports Illustrated staffers received layoff notices from the Arena Group this month. While some were informed that their jobs would be eliminated in 90 days, others were laid off immediately.

The layoffs come in the midst of a multimillion-dollar dispute between Authentic Brands Group and the Arena Group, which has a licensing agreement for Sports Illustrated's rights. The complaint filed by the NewsGuild alleges that the employees were fired due to their union engagement and other protected activities. Notably, managers and supervisors who are not eligible for union membership were not targeted in the layoffs. The complaint also mentioned that a staffer with an unresolved labor grievance against the company and a union officer were among those immediately let go.

The charge has been filed with the National Labor Relations Board's New York office. The NLRB will conduct an investigation to assess the merit of the charge. If it finds validity in the allegations, the NLRB could recommend mediation for a settlement or award restitution to the affected employees.

Susan DeCarava, president of the NewsGuild of New York, held the Arena Group ownership responsible for using the dispute over the Sports Illustrated license as an excuse to unlawfully target union members. DeCarava asserted that the Unfair Labor Practice charge was just the first step, and the union would explore all options to protect its membership.

Amidst the turmoil, former CEO of the Arena Group, Ross Levinsohn, who resigned from the company's board of directors on the day of the layoffs, cited union busting as one of the reasons for his departure. In a letter to the board, he criticized the actions of the company and the board, emphasizing the illegal nature of their actions and the potential for shareholder lawsuits.

The Arena Group has not yet commented on the charges. While the NLRB grievance process can be lengthy and may take over a year to resolve, the future of the esteemed publication hangs in the balance. Since its acquisition by Authentic Brands Group in 2019, Sports Illustrated has been faced with ownership changes and financial challenges. The missed $3.75 million payment by the Arena Group led to Authentic revoking the publishing license and subsequent layoffs.

Manoj Bhargava, founder of 5-Hour Energy, recently became the largest shareholder of the Arena Group. Under Bhargava's tenure, the company has witnessed the firing of top executives, including Levinsohn, as well as significant staff layoffs across its publications. The missed payment to Authentic further exacerbated the situation.

Despite the uncertainty surrounding the publication, Authentic Brands Group's CEO, Jamie Salter, has expressed his commitment to ensuring the continuity of the media arm of the company. Salter stated that negotiations for a new publishing license agreement are still possible, and if reached within the next 90 days, the laid-off Sports Illustrated staffers may have a chance to retain their jobs.

The future of Sports Illustrated hangs in the balance as the National Labor Relations Board investigates the unfair labor practice charge, and negotiations continue between Authentic Brands Group and the Arena Group. The fate of the iconic brand rests on the decisions made in the coming months.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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