Boston Globe, Union Reach Tentative Deal

(AP)  The Boston Globe has reached a tentative agreement with its largest union.

The Globe and the Boston Newspaper Guild issued e-mail statements late Tuesday announcing the deal. Guild members are set to vote on the agreement July 20.

Under the agreement, the Globe will save $10 million through salary and benefit reductions. The agreement includes a salary reduction of just less than 6 percent and changes the language in contracts regarding job security.

The 23 percent wage cut will remain in place until the Guild votes in July. In the meantime, employees will receive a lump sum payment to partially compensate for wages lost.

Guild President Dan Totten said further details would be available at a union meeting Wednesday.

The Globe lost $50 million last year and was on track to lose $85 million this year.

The New York Times Co. - the owner of the Globe - had threatened to shut down the 137-year-old newspaper if its unions did not come up with $20 million in annual concessions, including $10 million from the Guild.

Five other unions already have approved concessions, but they all hinge on the Guild's approval of new terms. After the Guild membership narrowly rejected the concessions last week, management declared an impasse and imposed a 23 percent pay cut to achieve those savings.

The Guild, which represents editorial, advertising and business employees, then filed an unfair labor complaint with the National Labor Relations Board.

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Why not just file for Chapter 11, you're going to end up doing it anyways?

And don't think you're going to get a bailout, people are tired of the mass media spreading false hopes of 'globalization' and British-style 'free trade'.

You've managed to destroy yourself with globalization.