Union requests government review of Postmedia ownership
The Communications, Energy and Paperworkers Union of Canada has made a formal request to Heritage Minister James Moore that the federal government review the purchase of Postmedia newspapers by foreign investors. According to the union, US-based investment companies own 92% of Postmedia shares and, since their purchase of the formerly Canwest papers, 500 jobs have been lost due to outsourcing to the Dominican Republic and the Philippines. "This is hardly of net benefit to Canadians, their communities or the critical flow of information in a democratic society," said Peter Murdoch, media vice-president at the union. "The Investment Canada Act requires a foreign purchase of Canadian companies to meet the test of a net benefit to Canada, but we fail to see how it helps Canada to see these papers damaged by foreign investors carrying heavy debt loads, particularly when there were Canadian companies ready to buy them. Surely the newspapers that keep millions of Canadians informed are as much strategic national assets as potash companies or the stock exchange."