Wednesday, June 24, 2009

Globe, Unions Reach Tentative Deal on $10 Million in Cuts

The Boston Globe and the Guild reasched a tentative agreement last night on $10 million in wage and benefit cuts. The unratified deal is structured to make the 137-year-old newspaper more attractive to a buyer.

It provides a smaller pay cut - 5.9 percent - in exchange for deeper benefit reductions. It eliminates lifetime job guarantees for about 170 veteran Boston Newspaper Guild employees, and freezing the pension plan.

“Our aim throughout our negotiations has been to achieve the necessary savings in a way that causes the least hardship for our employees,’’ said Globe publisher P. Steven Ainsley in a statement. “We’re very pleased to have reached an agreement that accomplishes those goals.’’

Union president Daniel Totten was quoted in the Globe as saying: “It’s been an exhausting process and a very difficult process for the members."

The Guild represents nearly 700 editorial, advertising, and business office employees. A vote has been set for July 20. The first offer failed by 12 votes out of more than 500 cast.

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