New York Times Co. reportedly threatens Boston Globe with closure

Posted by Helena Deards on April 6, 2009 at 10:27 AM

According to a report in the Boston Globe, its owner the New York Times Co. has threatened the publication with closure, unless its unions agree to $20 million of savings within 30 days. The concessions will reportedly include pay cuts, see the end of company contributions to pension plans and cause the elimination of some lifetime job guarantee clauses.

Although there has been neither confirmation nor denial from officials at the New York Times Co., the report cites union officials who were present at the meeting with Times Co. executives last week. Daniel Totten, president of the Boston Newspaper Guild said that the company want the concessions within 30 days or the paper will be closed, but Ralph Giallanella, secretary-treasurer of Teamsters Local 259 said that no timetable had been mentioned.

Some of the Globe's union employees were reportedly shocked at the newspaper's proposed closure, whilst some were unsuprised and others saw it as a negotiating ploy. The Globe reported that all of the union employees it interviewed would be "willing to accept pay cuts and other concessions to save New England's largest newspaper - as long as executives and managers make the same sacrifices."

The Globe reportedly lost $50 million last year, and is set to lose $85 million in 2009. The Times Co. recently imposed a 5% pay cut on all staff at the New York Times, and upon non-union staff at the Globe. The company's current financial difficulties have been well documented of late, and the move to cut costs at the Globe is the latest attempt to survive the financial crisis, which also has affected many other American newspapers and publishers.

Source: New York Times, Financial Times, Boston Globe