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Boston Globe Union Rejects ‘Concessions’

From a strangely solvent Reuters:

Boston Globe union rejects cuts, Times to slash pay

By Robert Macmillan Mon Jun 8

NEW YORK (Reuters) – The Boston Globe’s largest union narrowly rejected concessions on Monday that owner New York Times Co said would save $10 million, raising the possibility of the 137-year-old daily newspaper’s demise.

Members of the Boston Newspaper Guild voted 277-265 against accepting the concessions, which include an 8.4 percent pay cut, one-week unpaid furloughs and other cuts.

The rejection raises the tension between the Globe and its largest union and casts the survival of one of the most respected U.S. daily newspapers into doubt.

The Globe will cut union member pay by 23 percent as of next week to get the savings that it needs, the newspaper’s management said in a statement released a little more than an hour after the union released the results of the vote

The next steps are uncertain. The union has said it would challenge the move before the National Labor Relations Board, and the Times Co has threatened to close the newspaper if it could not get $20 million in savings from seven unions.

It wanted $10 million in cuts from the newspaper guild…

Six other unions have agreed to the concessions, leaving the Boston Newspaper Guild as the only holdout…

The union’s "no" vote comes after it and the Times Co had reached a tentative accord a little more than a month ago on the cuts, which also include the elimination of other benefits, including lifetime job guarantees and an end to matching contributions to 401(k) retirement plans.

Some guild members have become disenchanted with the perception that New York Times Co and Globe managers were doing well financially while union members had to sacrifice.

The cuts are higher than the 5 percent pay cuts that other Times Co employees were saddled with earlier this year.

The Globe, which the Times bought for $1.1 billion in 1993, is on track to lose $85 million this year, the Times Co has said…

The unions would rather have no jobs than to take a cut.

And we wonder why newspapers are in trouble.

This article was posted by Steve on Tuesday, June 9th, 2009. Comments are currently closed.

9 Responses to “Boston Globe Union Rejects ‘Concessions’”

  1. BannedbytheTaliban says:

    “From a strangely solvent Reuters” – Pefect SG, simply perfect!

  2. proreason says:

    I’m pretty sure Obamy will save these jobs.

    But even if he doesn’t, the losses can’t be counted against him because the jobs would have been lost anyway.

    And if the jobs are lost, others will be saved because of these being lost.

    See how it works?

    For a genius like Obamy, economics is a walk in the park.

  3. Liberals Demise says:

    Next week you can call it , “the Boston Flat World”.

  4. MinnesotaRush says:

    Union Bosses: “So .. we hold out on ANY concessions .. the paper will threaten to close/go under .. o-blah-blah will step in with a huge bail out check cuz’ they’re to big and important to fail .. and voilla’ .. we’re good to go!”

    Union Members: “You sure it’ll work?”

    Union Bosses: “It did for the UAW. Batta bing, batta boom!”

  5. curvyred says:

    In Pittsburgh, the Teamsters essentially shut down one of the major papers: The Pittsburgh Press. They were told they needed to take concessions and they wanted to retain full time drivers – the newspaper wanted some part time drivers in order to save jobs and preserve the paper.

    Then we ended up with the far inferior and very left-leaning Post Gazette. Luckily we still have the Tribune which made really good use of the strike issues by wooing advertisers.

  6. JohnMG says:

    …….”casts the survival of one of the most respected U.S. daily newspapers into doubt…..”

    Most respected?? Well, it’s all in the eye of the beholder, I suppose.

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