Boston Globe’s largest union rejects wage and benefit cuts
10 Jun 2009
The American daily newspaper, The Boston Globe's largest union narrowly rejected $10 million in wage and benefit cuts last night, which subsequently led to its parent, the New York Times Co impose a 23-per cent pay cut, effective next week in order to keep the paper in circulation.
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 on Monday against the new contract, although six other Globe unions had approved the contract earlier.
The Times has threatened to file a notice under the workers readjustment and retraining notification act, which requires 60 days advance notice before closing a business. This is the toughest pressure that the NYT has so far applied on the unions. (See: NYT's Boston Globe hangs between life and death)
The Boston Newspaper Guild is now planning to approach the courts to block the New York Times imposition of a 23 per cent pay on the grounds of unfair labor practice charges.
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
On 2 May, the The Boston Globe's management extended the 1 May deadline for unions to agree to $20 million in concessions until 3 May, saying some progress has been made in negotiations with the union leaders and would wait another two days before acting on its threat to close the Globe. (See: Boston Globe extends shutdown deadline till tomorrow)
The New York Times had ratcheted up the pressure on unions threatening to close the paper within weeks if they did not deliver big cost cuts. The NYT has said it would file a notice with the US government on Monday to shut the paper down if it failed to get the concessions.
Six other Globe unions later approved the concessions, but were hampered until the Boston Newspaper Guild ratified the new terms.
The 277 to 265 vote yesterday 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, given after the New York Times acquired the Globe for $1.1 billion in 1994.
The Boston Globe has been losing money constantly for many years as revenue from retail and classified advertising declined led to mounting loses.
After the vote, the guild said in a statement that the paper's owners "must do better than the offer that was presented", while the Globe said it would be willing to meet with the union to discuss the pay cut.
The 137-year-old Globe is the 17-largest newspaper in the US by daily paid circulation, according to the US Audit Bureau of Circulation. On Sundays, it ranked thirteenth.
The Globe was until recent years one of the top US papers. It boasted a strong international, national and local reporting staff that rivalled its bigger competitors like The Washington Post, The Wall Street Journal, USA Today and The New York Times.
However, like all US newspapers, where 12,500 jobs have gone in US print journalism in the past two years, the Boston Globe has been forced to cut back on operations as advertising declines.
