NYT: $20 Million Mix Of Concessions, Imposed Wage Cuts Saves Globe (For Now)
This story was written by Staci D. Kramer.
The New York Times Co. (NYSE: NYT) said Tuesday that it will keep the Boston Globe open despite the Boston Newspaper Guild's narrow vote against va concession package. We reported last night that the company had no plans to file the 60-day warning notice that would have to precede closing the paper.
When the union rejected the package of wage and benefit cuts valued at $10 million by 12 votes, NYTCo quickly followed with notice to the union that a 23 percent cut would be imposed next week. That, too, equals $10 million and, packaged with concessions from other unions under threat of closure, bring the total to $20 million. Spokeswoman Catherine Mathis Globe">told the Globe: "Because we have achieved the $20 million in savings we needed, we do not foresee closure at this time and are focused on executing the Globe's turnaround plan."
That may put the sword on a stronger rope instead of a thread, but it doesn't remove the threat, particularly if the union wins a stay against the pay cuts or the company loses if the Guild, as expected, files a complaint with the National Labor Relations Board. More to come.
By Staci D. Kramer