Boston Globe Union Attacks "Wretched" New York Times Management
BOSTON — Days before a key contract vote, the president of The Boston Globe's largest labor union has accused management of requiring deep concessions from workers while making "wretched" business decisions and doing little to share in the cuts.
President Daniel Totten stopped short, however, of suggesting that the Boston Newspaper Guild reject a contract proposal that would save the Globe's owner, The New York Times Co., $10 million a year and avert the newspaper's possible closure.
"I have every confidence that whatever Guild members decide will be the correct path," Totten wrote in the memo Wednesday. "Nonetheless, you learn a lot about people and organizations from how they behave in a highly challenging situation. And what we have learned about New York Times Company management _ and its unwillingness to share the pain of overcoming this crisis _ is terribly disappointing."
E-mail and phone messages left Thursday with the Times Co. were not returned.
Members of the Guild will vote Monday on the concessions negotiated after the Times Co. said it needed $20 million in annual savings from Globe unions to avoid having to shut down the 137-year-old newspaper. The Globe had $50 million in operating losses in 2008 and had been projected to lose $85 million this year.
The Times Co. demanded half the concessions from the Guild _ the Globe's largest union with 700 editorial, advertising and business employees. The new contract proposal includes an 8.3 percent wage cut, five-day unpaid furloughs and cuts in benefits. It also would end lifetime job guarantees for 190 Guild workers.
Guild leaders have not endorsed the contract proposal, agreeing only to allow its members to vote on it. If approved, the new terms would replace a contract set to expire at the end of the year.
In a separate memo sent to Guild employees Wednesday, Globe Publisher P. Steven Ainsley said five other unions already have approved concessions _ but they all hinge on the Guild's ratification of new terms.
"It is essential and non-negotiable that we achieve $10 million in cost savings from the Guild," Ainsley said. "Our financial situation is too urgent and further delays to resolution are not an option."
If the union rejects the proposal, the Times Co. could seek to declare an impasse, which could let it follow through with threats to impose a 23 percent wage cut.
Totten said Thursday he did not know how his membership would vote Monday.
In Wednesday's memo, Totten said executives at the Times Co. received bonuses in February _ shortly before threatening to close the Globe _ and will have their pay cut by 5 percent through only the end of the year, unlike the permanent reductions being sought for Guild members.
He also criticized the company for poor business decisions, such as splurging on its new headquarters in New York City. To help pay debt, the company recently sold 21 floors of the building for $225 million. Meanwhile, after the Times Co. sold its old building for $175 million in 2004, the new owners were able to fetch three times that amount about three years later.
"Times Company management decisions have been wretched: another unfortunate reality of their response to a serious challenge," Totten wrote.
Globe spokesman Robert Powers said many managers will experience a 20 percent cut in compensation.
"We have asked all of our employees, those in unions and those who are non-union, to make significant and equitable sacrifices," he said in a statement. "We are taking these actions because our financial situation is untenable, and our top priority is to ensure the Globe continues to serve the Boston community with high-quality journalism."
Beth Daley, a union delegate and environmental reporter at the Globe, said in an interview Thursday that many colleagues likely would reject the proposal _ some because of increased health care costs, others because of pension cuts.
"For a lot of people, it's just the darn pay," said Daley, who also planned to vote "no."
Those employees, she said, understand the difficult position the Globe and its parent company are in financially, but hope another round of negotiations could lead to a slightly better offer. But she expects the Times Co. to follow through on its threat to cut pay by 23 percent should the contract proposal fail.
"I think it's going to be a very personal decision for a lot of people, and at the last minute," she said. "I'm also hearing a lot of 'What should I do?'"
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MELISSA TRUJILLO | June 4, 2009 06:07 PM EST |
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