Posted on 06/09/2009 9:41:13 AM PDT by abb
Now that the largest union representing employees of the Boston Globe has rejected management's final contract offer, observers wonder if the parent New York Times Co. will make good on its threat to shut down the 137-year-old Globe.
"It's clear the Times doesn't want to go that route," said Ed Atorino, newspaper analyst at Benchmark & Co. But if the Globe is on a pace to lose $85 million in 2009, as has been reported, it will be tempting, he said.
"They would substantially cut their losses by shutting it down. Now, there may be major costs related to shutting it down, but if you close a business that's losing that kind of money, it can't hurt," Atorino said. "It's just a very unfortunate situation."
New York Times Co. threatened earlier this year to shut down the Globe unless it could get $20 million in concessions from the paper's unions. Last month, the Boston Newspaper Guild and the Globe had reached a tentative deal that on a proposal that included a substantial pay cut, unpaid furloughs, and modifications to the lifetime job guarantee provisions that protect almost 200 employees.
However, in a 277-265 vote on Monday, the guild turned down the Globe's proposal, the union said on its Web site late Monday.
In a statement, the Globe said that because the offer was rejected, it has put on the table an "alternative" last proposal that cuts wages by 23% for all members of the guild.
Because the two sides are at an impasse, the Globe said it would implement the wage cuts next week. "We regret having to take this action, but have no financially viable alternative," the newspaper said.
snip
(Excerpt) Read more at marketwatch.com ...
ping
Shut it down already ... Boston could use a building for a nice farmers’ market, and the Globe building would be ideal. ;)
Fat Lady... please report to the stage...
Stupid unions.Dont take 23% cut so we will give you a 100% cut. Bye Bye.
Another wonderful example of union members doing a crackerjack job for its employer.
What a bunch of stiffs.
When The Globe blows up, these Guild members are going to be looking for work for a very, very long time.
No one to blame but themselves, really.
Hey, they turned down a 10% cut—which is why the 23% cut is now effective. Quite the game of chicken they’re playing.
...shut ‘er down....and watch how capitalism works...that is another paper will arise to fill the vacuum....we have a little free paper in our area that’s a weekly and making a profit.
http://www.editorsweblog.org/newspaper/2009/06/npr_why_newspapers_should_follow_suite.php
NPR: Why newspapers should follow suit
http://www.innovationsinnewspapers.com/index.php/2009/06/09/not-newspapers-but-information-engines/
NOT NEWSPAPERS BUT “INFORMATION ENGINES”
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)
We’re about six weeks away from the news that the NY Times is “too important to fail” and the taxpayers must fork over the hundreds of millions needed to save it.
But will anybody notice?
My method for resolving the issue is to develop a formula based on seniority to issue shares of the Boston Globe to all employees both union and non union. The employees then get to run their show.
The New York Times can thus manage the size of the capital loss and take a smaller hit on the corporate balance sheet.
The Times will be good guys for being so gracious and the employees will twist in the wind
Unions cutting their own throats and putting the Times in a difficult position making Pinch look like a total drooler for buying the paper in the first place. What’s not to like.
Pinch paid $1.1 billion for it in 1993. Ouch!
The nasty old union doesn't understand that I've already dropped
$1.1 billion my family's money on this rag, and Carlos Slim won't
give me any more chips to play with.
Go ahead...the Globe reporters will finally have a REAL story to report on in their paper...oh, wait...there WON'T BE a paper to write in...considering it's the Globe...even better!
Actually, I don't mind watching the Globe stumble around, gutshot. I say let it continue to bleed revenue from the NYT.
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