Boston Globe’s parent company, The New York Times Co (NYSE: NYT), has been exerting pressure on the unions to assist Globe in implementing cost cutting measures, failing which it will close the paper.
No consensus even after deadline lapses
The initial Friday midnight deadline to arrive at a consensus with the four unions to find $20 million in cost cuts at the Globe was extended till Sunday midnight after the negotiations made progress. Unfortunately, the talks broke down.
"Filing the WARN notice is a difficult step that we would like to avoid," said a statement issued by the Globe after the standoff. "But, unfortunately, given the state of the negotiations, it is one we must be prepared to take."
About Boston Globe
Once rated as one of the top U.S paper, the Boston Globe has been struggling in recent years. The ever deepening recession, which has proved the waterloo of many a company, has sent the paper reeling under a severe crisis. As advertising revenue has slumped, the paper has had to cut back on operations.
Parleys with Unions
The Boston Newspaper Guild, representing close to 600 people in editorial, advertising and other business roles is one of the largest unions at the Globe. In an official statement, the Guild said it is "genuinely committed to reaching agreement."
In fact, the Guild had proposed certain cuts. The union said of these concessions, “This proposal was the product of arduous deliberations" and termed the concessions as "tremendous sacrifices.”
Martin Callaghan, president of the Boston Newspaper Printing Pressmen Union said of the discussions, “It was a difficult negotiation. We had a closed contract. We were reluctant to reopen it, but the economic times as they are, we did what we had to do to protect our members' jobs. We were asked to give $2.2 million, and we did.”
Callaghan’s union agreed! However, all the unions need to agree to key monetary concessions, including the elimination of lifetime job assurance for some workers if the 137-year-old newspaper has to move on.
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