The Boston
Globe’s demand for $20 million in union concessions amounts to more
than $15,000 per unionized employee on average, a Herald review has
found.
“(Globe owner) The New York Times [NYT]
is sending the message that they’ve had enough of this place,” Martin
Callaghan of the Globe pressman’s union said yesterday as the Times
opened talks with Globe labor leaders.
New York Times Co. threatened on Friday to close the 137-year-old
Globe within weeks unless the paper’s 10 unions quickly agree to $20
million of givebacks.
That averages $15,384 apiece for each of the Globe’s 1,300 unionized
employees, according to a Herald analysis of Times Co. securities
filings.
The company reportedly wants to cut wages and pension contributions,
and void lifetime-job guarantees that hundreds of Globe employees now
enjoy.
Times Co. is seeking ways to partly cover $85 million that it
expects the Globe to lose this year. The New York media giant also
faces a $400 million loan payment that’s due next month.
Experts believe Times Co. is probably bluffing about imminently shutting down the Globe.
“They’re not going to close the doors unless the unions are really
intransigent,” one stock-market analyst said, speaking on condition of
anonymity.
But Edward Atorino of The Benchmark Co. isn’t so sure. “The (Globe)
is losing a lot of money, and management certainly isn’t fooling
around,” the analyst said.
Globe unions appear likely to grant concessions just to keep the Boston broadsheet alive.
“We have to keep our members working and the paper afloat,” said
Ralph Giallenella of Teamsters Local 259, which represents Globe
drivers.
But even if unions approve givebacks, the paper seems likely to face big changes.
Douglas Bailey, a former Globe editor, predicts the Times will
eventually turn the Globe into a New England edition of the company’s
flagship New York Times newspaper.
“They’d have the Globe reporters cover the so-called ‘high news’
that would go in the paper, then move all the other extras - sports and
arts coverage - to the Web,” Bailey predicted.
Others think the Times wants to sell the Globe, but must first ditch lifetime job guarantees and other costly perks.
Possible suitors include Boston Coach CEO Larry Moulter, who’s
reportedly expressed interest in recent days in buying the paper.
Moulter didn’t return a call yesterday seeking comment.
Article URL: http://www.bostonherald.com/business/media/view.bg?articleid=1163984