Boston Area News

BOSTON (WBZ) ― In a close vote, the Boston Globe's largest union narrowly rejected a $10 million cut in annual wages and benefits.

The Newspaper Guild voted 277-265 Monday night against the new contract negotiated after the Globe's parent company, The New York Times Co., said it needed $20 million in annual savings from Globe unions -- half from the Guild.

"With today's vote, the Newspaper Guild has said that the New York Times Company must do better than the offer that was presented," said Dan Totten, President, Boston Newspaper Guild.

"Globe workers and the New England community understand that the quality of the Boston Globe – an institution so vital to the life and culture of the region -- depends of the fair treatment of the men and women who work so hard to produce it."

80-PERCENT TURNOUT

About 80 percent of union members voted, officials said.

Reporter Scott Allen made the difficult decision to vote "no."

Allen said the Times' proposal would not only cause financial hardship, but he wants to bring the company back to the table.

"I think I'm one of a number of people who get that the company is in tough financial shape. But they didn't even try to make a concession package that was palatable and equitable. It was take it or leave it."

The contract included an 8.3 percent wage cut, five-day unpaid furloughs and cuts in health and pension benefits.

It also would have eliminated lifetime job guarantees for 190 Guild workers.

THE 23-PERCENT CUT

The Boston Globe said because of the Guild's rejection of their proposal, it will implement a 23-percent wage cut.

"This evening we have sent a letter to the Guild stating that as a result of the rejection of this proposal, we have reverted to our alternative Final Record Proposal which provides for a 23 percent wage reduction for all Guild members. This will secure the $10 million in costs savings needed from the Guild, and will allow the Globe to reach the targeted $20 million in savings needed from all our major unions."

The wage reduction is expected to take effect next week.

"We regret having to take this action, but have no financially viable alternative," the Globe said.

FUTURE NEGOTIATIONS?

The Guild said they will return to the table and give some options of meeting dates.

"The Boston Newspaper Guild is committed to resuming good faith negotiations with the New York Times Company and Globe management to reach an agreement," Totten said.

The Guild is made up of editorial, advertising and business employees.

THE OTHER UNIONS

Six other Globe unions have approved concessions -- but they hinged on the Guild's ratification of new terms.

Teamsters Local 259, which represents delivery drivers, voted 89-69 Sunday in favor of roughly $2.5 million in wage and benefit cuts.

A machinists union representing fewer than 30 employees rejected concessions that day, the first union to do so.

But Powers said the decision does not affect the $20 million in savings needed from other bargaining units.

Employees at dozens of other newspapers have recently agreed to pay and benefit cuts, but those voted down by the Globe's Guild members would have been among the deepest.

OTHER NEWSPAPERS

Union workers at The New York Times agreed last month to accept a 5 percent pay cut through the end of the year and take 10 days paid vacation to help the newspaper avert more layoffs.

Management plans to restore pay to its previous levels next year if the newspaper's advertising revenue rebounds.

The union representing newsroom employees at the Milwaukee Journal Sentinel in April approved a 6.6 percent pay cut for its members in exchange for 10 more paid days off this year, as well as a guarantee of no layoffs through Sept. 30.

(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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