'Boston Globe' union rejects pay cuts; steeper cuts in store
BOSTON -- Union members at The Boston Globe narrowly rejected steep cuts in their pay and benefits, but now face even deeper reductions as the 137-year-old newspaper looks to slash $10 million in annual expenses to keep parent company The New York Times Co. from shutting it down.
The Boston Newspaper Guild, which represents 700 editorial, advertising and business employees, voted 277-265 Monday against the new contract negotiated after the Times Co. said it needed $20 million in annual savings from Globe unions — half from the Guild.
The Times Co. demanded the concessions amid an increasingly dire financial situation at the Globe. The newspaper has struggled as readers migrated to the Internet, advertising revenue declined drastically and circulation fell. The Globe had $50 million in operating losses in 2008 and had been projected to lose $85 million this year.
Six other Globe unions have approved concessions — but they hinged on the Guild's ratification of new terms.
The Times Co. had said that if the Guild rejected the proposal, it would try to impose a 23% wage cut. It also has threatened to close the newspaper, which would require giving 60 days notice to employees and the state.
In a statement released after the vote, the Globe said it is disappointed with the outcome and had no "financially viable alternative" but to declare an impasse and impose the deeper wage cut to achieve the necessary savings.
"This evening we have sent a letter to the Guild stating that as a result of the rejection of this proposal, we have reverted to our alternative Final Record Proposal which provides for a 23% wage reduction for all Guild members," the statement read.
The cut would take effect next week. The Globe said the newspaper would be willing to meet with the union this week to review implementation of the cut.
About 80% of union members voted on the concessions. Union leaders had presented the contract offer to the union without a recommendation either way.
