Monday May 4, 03:43 PM
No agreement in talks to save Boston Globe
WASHINGTON (AFP) - Negotiators for the largest union at the Boston Globe and its owner, The New York Times Co., were taking a break on Monday after failing to reach agreement on concessions the Times (1832.HK - news) says are necessary to save the newspaper.
The Times Co., which purchased the Globe in 1993 for 1.1 billion dollars, has threatened to shut down the 137-year-old newspaper unless unions agree to significant cost-saving measures.
The Globe reported on Monday that unions for drivers, press operators and other Globe workers had reached tentative agreement with management overnight on concessions that would lead to millions of dollars in annual savings.
But the newspaper's largest union, the Boston Newspaper Guild, which represents, 600 editorial, advertising, and business office workers, and management failed to reach agreement in marathon talks, the paper said.
It said management had rejected the union's latest offer, which included 10 million dollars in cuts to salaries and benefits.
The Globe quoted Gregory Thornton, management's chief negotiator, as saying that "substantial progress" had been made in the session.
The Times Co. threatened overnight to begin the process of shutting down the Globe and file its intention to close the newspaper within 60 days with the state of Massachusetts.
But Thornton told the paper: "We have no plans to file a notice at this moment."
According to the Boston Newspaper Guild, management rejected a proposal that included a 3.5 percent pay cut for most employees, an unpaid furlough, an increase in the early retirement age and a reduction in pension contributions.
"They rejected our on-the-record offer," Guild president Daniel Totten told the Globe. "It's the same bullying and pressure tactics. We remain here in good faith."
He said the negotiators were exhausted and taking a break. "The negotiations are done today," Totten said. "We will reconvene in short order."
Like other US newspapers, the Globe has been grappling with a steep drop in print advertising revenue, steadily declining circulation and the migration of readers to free news online.
It is forecast to lose 85 million dollars this year without significant cost reductions, according to the Times Co.
With a weekday circulation of more than 320,000, the Boston Globe is the 14th largest newspaper in the United States. It began publishing in 1872.
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