George S. May Business Blog

Boston Globe union and NY Times reach an agreement on pay cuts, health care cuts, frozen pensions

The Boston Globe union and The New York Times Co. have agreed on a new contract that looks to save the newspaper around $10 million. The NY Times had been threatening to close down the Globe prior to the new contract.

Allegedly, the new agreement, which was passed by a vote of 366-179, will put salary cuts of 6% into play as well as frozen pensions, cuts in health care, and an elimination of job guarantees.

Dan Totten, the union’s president, stressed that the union will support the decision:

“Boston Newspaper Guild members have spoken and, after careful consideration, voted to accept the tentative agreement put forward by The New York Times. All of our members spent a great deal of time discussing and studying the tentative agreement and we respect the decision that they made.”

In June, the Boston Globe union had voted against a similar contract. After the contract was voted down, The New York Times Co. put a 23% salary cut into place to offset what is expected to be more than $80 million in losses that the Boston Globe will suffer in 2009.

“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 carry on with its vital mission to promote good journalism and protect free speech” said Totten.

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