Reporters Focus on Community Implications from Merck Cuts

Merck's move to cut 7,000 jobs and close five plants this week presented several business sections with harsh realities for their local communities.

Cities such as Albany, Ga., and Danville, Pa., learned that the drug giant was completely shutting down or selling local operations. For the Albany plant, this translated to 350 jobs up in the air.

Valerie Benton, a business reporter for The Albany Herald, reported that Merck's pharmaceutical woes played heavily into its decision.

"The expected loss of $5 billion in ZOCOR sales and a change in manufacturing strategy by Merck Chemical Co. will lead to immediate downsizing and the eventual sale or closing of the Albany plant, Merck officials said Monday," she writes.

Although some of the bigger cities were spared, news of layoffs came down across the board. The Rahway, N.J.-based plant will shed 250 jobs as part of its restructuring. Ed Silverman of The Star-Ledger says it took work to get information out of company officials leading up to the announcement.

"I got a board member on the record but couldn't get any closer," he says. "It's hard in a situation like this. Companies don't want to release any information before they can or should. There are some legal requirements that information has to be disseminated to shareholders first."

For readers in communities where Merck operates, the five letters V-I-O-X-X conjure up substantial interest. The massive number of lawsuits alleging to this painkiller caused heart attacks has the drug giant on the defensive.

Publications without Merck ties might mention, but not have to drive home news about lawsuits. But for papers like the Star-Ledger, reporting the legal implications is crucial for the local audience.

"It's hard not to write a story about Merck without writing the word Vioxx," Silverman says. "I don't think that average Americans are worrying about the lawsuits. But we know there is a lot of local interest here because people work for the company. It's a key factor here."

Despite Merck's press release with details of the cuts and closures on Monday, Silverman says it still proved difficult to get further comment from the company. In cases like these, employees may very well be willing to speak when the organization isn't (even if they are given direction not to speak with the media).

To get the word from workers, become a mobile journalist. Get away from your desk and drive to the plant in your area. The trip may be well worth your time.

"You have to follow up the old-fashioned way," Silverman says. "Call the company and bug them. There might be a union operation at the plant, as is the case in Rahway. Go to the plant or the local coffee shop around the corner. You might get lucky."

Copyright © 2008 Donald W. Reynolds National Center for Business Journalism