In a big game of the Mexican Standoff, Boston Globe Guild members rejected a call by their owner the New York Times for wage and benefit concessions.
Boston Globe pressures unions – agree or else (illustration Fox News)
As we reported yesterday 10,095 newspaper layoffs this year, Boston Globe votes today, the other unions at the Boston Globe had tentatively come up with $10 million in savings if the Guild approved $10 million.
The Boston Globe is expected to lose $85 million this year without some plan to cut costs. That was of course before the dismal 2nd quarter revenue numbers come out which are expected to be down from the 1st quarter revenues for most major newspapers.
A bankrupt GM doesn’t buy as many full-page ads as a GM with $13 billion from the US government. There used to be a saying: as goes GM so goes the nation.
In the advertising business, that is probably still true. The world’s largest auto company spent over $2 billion for advertising last year GM Bankruptcy will bring hard times to media which is expected to drop this year.
The New York Times may shut down the Boston Globe on 60 days notice to the state and employees or impose a 23% across the board pay cut. The NYT’s owners have stated their determination not to lose the $50 million the Boston Globe lost last year.
No matter what happens, employees of the Boston Globe are facing uncertainty and major change.
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