Boston Globe's largest union approves $10million of cuts

Posted by Emma Heald on July 21, 2009 at 9:10 AM

The Boston Globe's largest union, the Newspaper Guild, approved a package of $10 million in wage and benefit cuts last night after more than three months of bargaining. The paper's owner, the New York Times Co, had threatened to close the paper in April if $20 million in savings could not be made. Six other smaller unions which represent the paper's staff have already ratified concessions that totalled $10 milion.

Guild members voted 366 to 179 to approve the package, the Globe reported. It includes pay cuts, furloughs and unpaid vacation that add up to an earnings reduction of about 9%, reductions in health and retirement benefits and the elimination of lifetime job guarantees for about 170 veteran employees. There was a turnout of about 80%.

Last month, the guild narrowly rejected the first package proposed by the company, and the New York Times imposed a 23% pay cut. A meeting was promptly arranged between management and the guild and negotiations began. The new contract will cut salaries by 5.94%, compared with 8.3% in the initial proposal. Staff will now be reimbursed for most of the difference between the 23% cut and the new lower figure.

However, the uncertainty is not over for Boston Globe employees. It was widely reported last month that the Times Co was strongly considering selling the paper, with some prospective buyers named. Now that the labour issues are resolved (for the moment) will a sale go through? Guild president Daniel Totten said in a statement: "It has been a long and difficult period for everyone and we hope that we can now work with prospective buyers to help The Boston Globe and Boston.com carry on with its vital mission to promote good journalism."

Source: Boston Globe, Editor & Publisher