Boston Globe extends shutdown deadline till tomorrow
02 May 2009
The Boston Globe has extended the 1 May deadline for unions to agree to $20 million in concessions until tomorrow (3 May), saying some progress has been made in negotiations with the union leaders.
The offer was extended after the mid-night 1 May deadline passed. Globe management, however, said progress has been made in talks with unions and that the Times Co, which owns the Boston Globe, would wait another two days before acting on its threat to close the Globe.
"Because there has been progress on reaching needed cost savings, The Boston Globe will extend the deadline for reaching complete agreements with its unions until midnight Sunday, 3 May," Globe management spokesman Robert Powers said in a statement.
The statement came after month-long negotiations with Globe's largest union, the Boston Newspaper Guild that extended past the midnight of 1 May.
The Times Co wants the workers' guild, which represents more than 600 editorial, advertising and office workers, to agree on $10 million salary concessions - half of all union concessions.
"We have given the New York Times Co and Globe management proposals for deep cuts in our members' pay and benefits that we believe will save The Boston Globe," Daniel Totten, Guild president, said in a statement. "We are awaiting the company's response," he added.
While talks between the Guild and the company are scheduled to resume tomorrow, any agreement would have to be ratified by members of the unions.
The Times management has been in negotiations with its labour unions over the whole of April since it issued a warning to its 13 unions that it would close the Globe unless they agree to forgo $20 million in worker's remuneration by 1 May.
The Globe lost $50 million last year and has projected an $85 million loss this year.
