Medium Tells Journalists to Feel Free to Quit After Busting Union Drive
vice.com
vice.com
Five months severance sounds unusually generous. Kudos to Ev Williams for offering such a nice parachute to go along with the business model change. It isn't the writers' fault that the business changed underneath them, so giving them ample time for the transition is deserved and decent.
This is of course getting lost in the big-tech-vs-unions narrative - but at the end of the day the traditional journalism part of Medium was not going to keep the boat afloat, union or not. And as Ev alludes to - the problem is trust.
I think Substack is the future for real actual journalism, and I think Ev is right that individuals are where the trust is earned nowadays. I think Substack is the only place we're going to see actual critical thinking and analysis, and maybe the only place for real breaking stories that go against the common narrative.
Anecdote Time: I have several friends who are journalists at major newspapers. They used to be people who loved to fight authority at every turn. They were critical of all politicians regardless of party, and would never take a corporate PR team's statement at face value. I'm not sure what happened - but they all follow the same set of talking points now. Not one is skeptical of anything the Democratic politicians do, and I haven't heard one of them criticize a single thing the current administration has done.
So really - what future do journalists have if they all think the same? What future do they have if they let the same corporations and politicians write their stories for them? No wonder trust in media is at an all time low.
There is power in a union.
I agree, but also with the caveat that the union has to be good. And I think that was a significant issue here which is that there isn't union know how about how to organize and operate in a pre-IPO, pre-profit, pre-critical-mass startup.
Anyone who has worked at startups knows that there are ways workers get screwed that are specific to startups. The whole idea of liquidation preference for example is nutty given that a 1x return doesn't change a fund's dynamics but does rob employees of a meaningful chunk of cash.
But then the other dynamic is that there is both a very real chance of the company failing and everyone losing their jobs and of the need for some people to lose their jobs in order for everyone else to keep them.
I think unions could work in pre-IPO startups if they were aligned with the IPO. There would still be a lot to bargain for and they could help soften the downside of failure while chiseling off more equity for the staff.
But this unionization effort didn't seem particularly savvy about the dynamics of being pre-IPO. For example getting busted by "investors might not want to invest if this succeeds" is not a particularly savvy way to go down. I wouldn't want people bargaining on my behalf who hadn't proactively predicted that concern and countered it.
But that's not particularly a knock on Medium's organizers. I just think this is an area of unionization that hasn't been invented yet and it would have benefited from people who saw it that way.
Sure, you could try to outlaw that, but these regulations always seem to have loopholes. You'd need unions with basically no borders stretching across continents, which I frankly find terrifying.
Having been IT in an international company, I can tell you that we were not fond of some of the European unions because they would push back against anything that anyone over there didn't like. This included things like "you guys need to stop using Windows 7 on 5-year-old laptops and start using Windows 10 like the rest of the company". I guess maybe from their view that was still a "positive impact for workers", but they were a huge pain point.
There is an incredible amount of anti union propaganda in the USA.
Unions are also blamed (rightly or wrongly) for the downfall of Detroit and auto manufacturing in the US. For tech, the view I’ve seen is “things are good, why risk it?”
What killed off the textile mill manufacturing in North Carolina, a state with the lowest (tied with South Carolina) unionization in the country?
The difference is unionized factory workers in the 1930s in Michigan sent their children to college, like Larry Page's auto worker grandfather. Non-unionized North Carolina textile workers could not afford college, and their children worked at textile mills until they closed down, and their grandchildren are in worse shape than they were.
If american union organizers signalled they really cared about positive impact for workers rather than pushing one side of the culture war, they'd be more successful.
A 'voluntary exit option' Is that sarcasm?
But the main one is about the need for urgency.
One basic way to read these changes is that it just looks like Medium getting savvier about what drives and grows their subscription business. There's been no pivot there. The challenge for them still is to get their subscription business over the hump.
And the hump they have been at for awhile is that the subscription has been growing despite being generally meh quality. It's just $5 and a lot of people like supporting authors that way. But what are the ways to go from meh to great?
What I think Medium found is that they were getting better value by spending in other places. For example, I was part of bringing the back catalog of The Pragmatic Programmers books onto Medium. That was a deal that was relatively economical and had a direct hypothesis related to growing the subscription. For programmers now, at least, they have a nice headline for why a programmer would spend $5.
So to see Medium focus more on what's working to actually tip the subscription over puts me at ease because I still see the company has being in a zero to one situation. It could succeed, but it hasn't yet.
But taking your name recognition as "that big blogging site where any idiot can write whatever they want" to "source of researched news from paid journalists" is a tough direction.
He talks about this idea of credibility being built by individual people now rather than brands, but how much of that is because he's starting from a brand that was founded on having no editorial credibility?