Boston Globe’s union hold back court hearing in favour of negotiations

The Boston Newspaper Guild, The Boston Globe's largest union, has postponed the hearing of the unfair labour case it had filed last week at the National Labour Relations Board in view of its negotiatins with the Boston Globe management to end the impasse on the pay cuts.

Both sides were locked in protracted talks well past midnight till early this morning, the main focus being limiting the size of the pay cut after the Boston Newspaper Guild narrowly rejected $10 million in wage and benefit cuts last week, which led to the Boston Globe's parent, the New York Times Co imposing a 23-per cent pay cut. (See: Boston Globe's largest union rejects wage and benefit cuts)

Since the Globe lost $50 million last year and has projected an $85-million loss this year, The Times Co wanted the Boston Newspaper Guild to agree on $10 million in salary concessions or half of all union concessions of $20 million.

But last week, the Massachusetts-based The Boston Globe's largest union, the Boston Newspaper Guild that represents more than 1,200 white- and blue-collar workers voted 277 to 265 against the new contract, although six other Globe unions had approved the contract earlier.

The 277 to 265 vote also included an 8.3-per cent pay cut, reduction in healthcare benefits, contributions and pensions and five-day unpaid leave.

The concessions also would have done away with the lifetime job guarantees for 190 Guild workers, granted after the New York Times acquired the Globe for $1.1 billion in 1994.

After the Boston Newspaper Guild vetoed the contract, The New York Times had ratcheted up pressure on unions by imposing a 23-per cent pay cut effective this week in order to keep the paper in circulation.

The Boston Newspaper Guild then approached the National Labour Relations Board to block the New York Times imposition of the pay cut as being an unfair labour practice.

With both sides understanding the gravity of the situation, they have been exploring other avenues of injtroducing cost savings in order to reduce the size of the pay cuts, according to a spokesperson of the union.

According to the spokesperson of the union, both sides are making progress and will reach an agreement very soon that is acceptable to both the management and the union.

Observers say that both sides would not want to fall off the cliff through their bargaining stance since nobody wanted the paper to close down. The 700 odd editorial, advertising, and business office employees at the Globe would not want to risk losing their homes or their cars in an ultimate confrontation with the Times Co, which is in no mood to back down.

Like all US newspapers, 12,500 jobs have gone in US print journalism in the past two years and the Boston Globe has also been forced to cut back on operations as advertising revenues have plunged and the newspaper posted losses of $50 million last year.

In the midst of this battle, three suitors have emerged and are ready to buy the struggling 137-year-old The Boston Globe, but are waiting on the sidelines until a deal is hammered out between the Boston Globe's management and the union. (See: Troubled Boston Globe has three buyers: report)

The New York Times Co had put the 137-year-old Massachusetts-based Boston Globe, the 17-largest newspaper in the US by daily paid circulation, according to the US Audit Bureau of Circulation, on the selling block along with the Red Sox baseball team since last November to finance a $400-million revolving credit line that expired last month.