Globe to Implement Wage Reductions Next Week

Here is the statement from the New York Times Co. regarding the Guild's rejection of accepting $10 million in concessions:

We are disappointed that in a very close vote of 277 to 265 the Boston Newspaper Guild did not ratify the Globe’s final proposal. As we have stated, the $10 million in cost savings from this multifaceted proposal is essential to The Boston Globe’s financial future.

This evening we have sent a letter to the Guild stating that as a result of the rejection of this proposal, we have reverted to our alternative Final Record Proposal which provides for a 23% wage reduction for all Guild members. This will secure the $10 million in costs savings needed from the Guild, and will allow the Globe to reach the targeted $20 million in savings needed from all our major unions.

Since the parties are at an impasse, the Globe will implement the wage reduction effective next week. We have told the Guild that we are available to meet any day this week to review implementation of the pay cut.

We regret having to take this action, but have no financially viable alternative.