Boston Globe Rejects Bad Cutbacks In Favour Of Worse Cutbacks
The Boston Globe lost $US50 million last year. It’s projected to lose $US85 million this year. So the New York Times Co. asked the newsroom to accept a package of cutbacks. Yesterday, they voted “no.” Now they’re really getting screwed.
The union voted 277-265 to reject management’s proposal—about a 10% pay cut, the end of “lifetime employment” guarantees and retirement contributions, and other small cutbacks. Therefore, the company plans to immediately institute 23% pay cuts.
Those in the newsroom that voted against the deal appear to be under the impression that the NYT Co. is “bluffing” when it comes to that 23% pay cut. That does not appear to be the case though!
Best case scenario, for the union: the company decides it’s too much of a hassle to fight out the huge pay cuts (which will be legally challenged) and goes back to the bargaining table and offers the union a better deal. Doubtful!
Medium case scenario: Everyone’s pay is cut by 23%. Pretty likely!
Worst case scenario: The union turns the pay cuts into a lengthy court battle that paralyzes management’s ability to cut costs and ends up forcing the NYT Co. to close the paper altogether. Quite possible, now!
Newspaper life’s a bitch these days. But it won’t take too long before the Globe newsroom starts to think that the deal they just rejected doesn’t sound so bad, compared to what’s coming.
[Romenesko. Pic: AP]
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Comments (AU Comments | US Comments)
Nose, say goodbye to face.
miss_msry
I weep as my beloved newspaper industry sinks, but I feel no sympathy for those who turned down that life raft of a deal. Are the Globies so myopic that they are willing to close the paper for a delusion that their skills have not lost value?
MsWinstonSmith
Every time I read a story like this I am just dumbfounded. How can people still say a Union is a good thing?
My mom was in a Union for 20 years but that was before worker safety laws, OSHA, wrongful termination suits etc.. I don't think this is the type of thing she was talking about.
I have no idea how anyone can defend/justify these people.
ConAir34
@Kid Twist: Yeah no joke. They're upset that they're going to lost their lifetime job guarantees (among other things). Not even Communist governments give their employees lifetime job guarantees.
@SultanaEleusis: HAH! So that's what you learn in journalism school: unbridled optimism.
katekate is squared
The union just announced that Monday is, in fact, opposite day. Thus, they actually voted in favor of the 10% cut.
Crisis averted!
HowardRoarkLaughed
Does the 23 percent pay cut also mean a 3- or 4-day work week? Because it seems like you're not going to get quality 40-hour/week labor from completely demoralized, debt-ridden, and possibly malnourished employees. Plus, they're going to need those days off to go to their second job.
a boy and his dog
@oywhatnext:
I got the same promise my grandparents got when they came to this country...work hard and you will be rewarded. Thats the only promise I need. "Job for a lifetime"? Who am I...a North Korean dictator?
@Argybargy2: If only. Trouble is, your bosses aren't likely to impose cutbacks when you can give them money and votes, and the taxpayers are on hook for what the bosses bestow.
Preopsician
@oywhatnext: Did you get a guarantee or just a promise? Will you be fired next week?
daveyjonesisdead
What a bunch of pigs. I was given a 10% pay cut, my benefits were slashed to the point that my employer no longer contributes a DIME to my health benefits and I was glad to do it to keep my job. I hope these guys all get canned and get to watch it on the news just before their TV's get repo'd.
23% won't happen and the union will insure bankruptcy and their own demise. this paper is going down fast.
I'm glad I decided to go back to journalism school rather than try to compete in today's hard job market. By the time I get out, all these knotty questions should be worked out, and I can slide effortlessly in to a well-paying job with prestige and free canapes.
SultanaEleusis
Those lifetime employment guarantees sure will come in handy when they shut down the paper.
NYT is bluffing when it says it will impose 23% pay cuts - it can't, under the contract. When companies start re-opening contracts to increase pay because they are making tons of money then unions will re-open contracts to decrease pay because they are losing money.
daveyjonesisdead
Union members are always shortsighted...of course that normally helps in the newspaper industry.
BoonsFarmersDaughter
Union leaders must tell their drones to not worry; that by simply voting and decreeing that their kingdoms shall remain unchanged, this too shall pass.
Bye Bye Boston Pie.
Now can we please get the State employees to vote on 30% cutbacks/layoffs? The only thing deader than newsprint yet still growing payrolls is government and the endless pension grab.
Argybargy2