KYW reaches new contract as Entercom’s stock continues to languish

KYW Newsradio’s 70 unionized employees have reached a new four-year contract with radio giant Entercom Communications, based in Bala Cynwyd. The Screen Actors Guild-American Federation of Television and Radio Artists and Entercom confirmed the new contract on Monday.

A federal mediator was brought into the talks earlier this year when they bogged down over severance and union jurisdiction over the 24-hour news station’s digital employees.

Stephen Leshinski, the union’s Philadelphia-area executive director, said the new contract includes annual wage hikes and continued jurisdiction over digital employees. The union and the company compromised on severance, he said.

Entercom acquired KYW and other unionized big-market radio stations in 2017 through its deal for CBS Radio. These were the first round of union talks between Entercom — which owns more than 200 radio stations — and KWY and other stations since the CBS Radio deal closed.

Entercom and unionized stations in San Francisco, Chicago, New York, and Los Angeles are still negotiating contracts, Leshinski said.

Entercom and CBS Radio merged in late 2017. Entercom stock closed down 10 cents Monday, settling at $5.94. In early 2017, before the deal was announced, Entercom stock was trading at about $15.60.

Entercom CEO David Field has said that radio is undervalued and the company has embarked on multiple projects to grow Entercom’s revenues and consolidate operations to cut costs to boost profits. Later this year, Entercom is expected to relocate its corporate offices and local radio stations into new offices and studios in Philadelphia.

Entercom’s revenues jumped 4 percent in the first quarter and executives expect more gains through 2019.

“We have reached an agreement that reflects how much we value our team at KYW Newsradio and our commitment to outstanding, community-focused, agenda-setting news coverage in Philadelphia,” Entercom said in a statement on Monday.