Boston Globe May Have a Local Suitor

Finally, there seems to be a potential hometown buyer for the Boston Globe.

Aaron Kushner, an entrepreneur who owns Marian Heath Greeting Cards Inc. in Wareham, Mass., told Robert Gavin of the Boston Globe that his group, called 2100 Trust, is planning to make an offer to the New York Times Co.

He would not discuss terms of the projected offer.

"We are putting together the business model of taking what is an important community organization and reverse the cycle and have it growing," Kushner, 37, of Wellesley, said an interview. "If the Globe was achieving even half its potential, it would be of much greater import and impact."

The newly-formed group wants to purchase the New England Media Group unit, which includes the Globe, Boston.com, and the Worcester Telegram & Gazette.

Last year the Times Co. had put the Globe up for sale but pulled it off the market, saying that the paper's financial conditions had improved.

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.

Globe Management, Union Talks Last Through the Night, Will Resume Today

What started as an informational session turned into a negotiation as Boston Globe management and the Guild spent the evening bargaining over a proposed 23 percent wage cut.

Globe spokesman Robert Powers, as quoted by Robert Gavin in this morning's Boston Globe, described the discussions as substantive. Boston Newspaper Guild leaders expresed optimism that a deal could be reached.

"We discussed many issues during today's meeting with the Guild, but have not reached an agreement," Powers said early this morning.

"Talks are continuing," said Daniel Totten, president of the Boston Newspaper Guild.

The Guild came to the meeting with "offer of resolution" to management. That triggered an in-depth discussions over the $10 million in cuts demanded by The New York Times Co., which owns the newspaper.

About a week ago the Guild narrowly rejected a $10 million package of concessions. After the vote, management cut wages for the nearly 700 editorial, advertising, and business office employees represented by the Guild by 23 percent. Any new agreement must be ratified by the rank-and-file, but under Guild bylaws, the vote could not take place for at least 30 days.

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.

Boston Globe Guild Rejects Plan for $10 Million in Concessions

Boston Globe Guild employees, by a vote of 277 to 265, narrowly rejected a proposed package of wage and benefit cuts today, despite a threat from the newspaper’s owner, The New York Times Co., that such a rejection could precipitate a unilateral, 23 percent cut in pay.

The Boston Newspaper Guild, which represents 700 editorial, advertising and business employees, was faced with the choice of accepting $10 million in annual wage and benefit concessions or risking even deeper pay cuts and the possible closure of New England's most prestigious newspaper. Management says said that a provision to reopen the guild contract gave owners the right to impose the 23 percent pay cut if the wage and benefit cuts were rejected. Union officials say the company was bluffing.

The rank-and-file with the newspaper's six other unions have already approved a total of a little more than $10 million in concessions.

The New York Times Co., which owns the Globe, said it needed a total of $20 million in annual savings from Globe unions - half from the Guild - to avoid shutting down the 137-year-old newspaper.

It was a choice of two bad options, as described by Richard Perez-Pena writing in The New York Times.

“We have two really lousy options,” said Michael A. Paulson, a reporter, who said in late afternoon that he was still undecided. “One is to accept a package that we think is unfair and excessively onerous,” he said, while the alternative might be more painful, and would mean “another battle with the company.”

Two months ago, the company threatened to close The Globe unless unions agreed to $20 million a year in wage and benefit concessions, and to give up lifetime job guarantees for about 400 employees. Of that savings, the company sought $10 million from the guild, by far the largest union, representing about 670 workers, most of them in the newsroom, with others in advertising and other departments.

A guild official said that voting turnout was huge, with more than 500 members having voted by 6 p.m. [Eastern.]

Alexandra Marks of The Christian Science Monitor wrote about the vote from the 35,000-foot level:

But hovering over the debate is a larger question: Is there a future for a traditional, major metropolitan newspaper?

"Certainly, there's nobody in the union who thinks, 'OK, if we approve this deal, we make the sacrifices now, but we're guaranteeing our survival and there's smooth sailing,' " says Mark Jurkowitz, associate director of the Pew Research Center's Project for Excellence in Journalism in Washington. He's also a former ombudsman at the Globe. "What we're seeing here is that: 'Even if we accept this offer, what is the future of the paper?' That's the big unknown that's hovering over this."

Photo of Boston Globe rally on April 24, 2009.

Boston Globe Drivers OK $2.5 Million in Cuts; Guild Votes Monday

The Boston Globe delivery truck drivers on Sunday approved $2.5 million in wage and benefit cuts, the newspaper reports, leaving the Boston Newspaper Guild as the last union to vote on concessions.

The New York Times Co., owners of the Boston Globe, are seeking $20 million in cuts. It says without the cuts, it would be forced to close New England's most prestigious newspaper.

So far, cuts approved by rank-and-file members of six unions equal a little more than $10 million. Guild employees will vote on an additional $10 million in concessions on Monday.

Members of Teamsters Local 259, which represents 200 truck drivers, approved the measure 89 to 69. It's the second time in six months drivers have approved $2.5 million in cuts.

"This local stepped up not only to save their jobs, but the jobs of everyone who works at the Boston Globe," Ralph Giallanella, the union’s secretary-treasurer was quoted as saying.

TThe New York Times says that the Globe, New England's largest newspaper, faces to lose about $85 million this year.

The Boston Newspaper Guild is the paper’s largest union and is made up of more than600 editorial, advertising and business office workers.

NYT Co.: Boston Globe Closure Is on a Very Real Path

In response to an inquiry by Adam Reilly of the Boston Phoenix, New York Times Co. spokeswoman Catherine Mathis emailed her comment on the possibility of the Globe's closure yesterday:

“Closure is a very real path for the Company to take. We have said that we need to achieve $20 million in savings from our unions in Boston. At the end of the ratification process (the drivers vote on Sunday and the Guild votes on Monday), we need to have secured the full amount. With the Guild we have two different paths to achieve savings of $10 million. One, ratification of the contract. Two, implementation of a 23 percent wage reduction. The Guild seems to believe it can reject the contract, prevent implementation and thereby force further negotiation. That’s not right. Time is of the essence.”

The backdrop to this is that Globe reporter Brian Mooney has been urging his fellow Boston Newspaper Guild members to vote no on the contract proposal this Monday. He expressed his belief that the Times Co. won't follow through on its threat to close the paper in an email to Reilly:

During the course of negotiations, the company has repeatedly engaged in punitive, bad-faith bargaining and basically committed an act of corporate terrorism with its threat to close the paper. They have traumatized their own employees, their employees' families, and the wider community that cares about and depends on this newspaper.

I think we've put to bed the notion that they can afford to make good on that threat, because the Times Company's own finances are so fragile, the cost of closing us would wreck the parent company. But the damage is done.

The deal was made on May 6 and calls for a 10 percent wage cut. It gives the company more flexibility with layoffs. The dollar figure behind the cuts are $10 million. The rank-and-file vote is Monday.

Boston Globe Reaches Tentative Deal With Guild

Negotiators for the Boston Globe's owners, The New York Times Co., and the newspaper guild reached a tentative agreement at 3 a.m. today in an effort to save New England's most famous newspaper.

Details of the agreement were not released, as reported by Jessica Heslam and Christine McConville of the Globe:

The New York Times Co., itself facing a severe financial crisis, had warned the Boston Newspaper Guild in no uncertain terms that it would order a sweeping 23 percent wage cut for all 700-plus Guild members if an agreement was not reached.

There was no word on the major sticking point during marathon negotiations over the last four days - the lifetime job guarantees held by about 190 members of the Guild, which represents editorial and advertising workers. Lifting or modifying those guarantees would leave those staffers vulnerable to layoffs.

“These negotiations have concluded this evening and we have a proposal to bring before the members of the Boston Newspaper Guild,” said Guild president Dan Totten, emerging from the latest round of intensive talks at 3:40 a.m.

“Out of respect to our members, we’re not disclosing any details until we meet with the membership and the New York Times has agreed to do the same thing.”

No Closure Filing for Boston Globe; Six of Seven Unions Agree to Cuts

Management has announced that it will not file a plant-closing notice today -- as required by law -- to close the Boston Globe after reaching concessions from six of seven unions.

"We expect to achieve both the workplace flexibility, and the financial savings that we sought from these unions," Globe spokesman Robert Powers said in a statement on the Globe's website. "We are not, therefore, making a filing today." Companies are required by law to give 60-days notice to the state and employees before closing a business.

The Globe reached agreements with unions representing delivery truck drivers, mailers, press operators, electricians, machinists and technical services workers. Those unions represent about 500 employees. The agreements still must be ratified by a vote of members in each unions. The sole union without an agreement is the Boston Newspaper Guild, which represents more than 600 editorial, advertising and commercial workers.

The Globe reported that Guild leaders left talks today without a deal, with the elimination of lifetime job guarantees enjoyed by about 190 members said to be a key issue separating the two sides. Leaders in unions with similar job guarantees have made concessions on the issue, but declined to release details, the Globe said.

NYT Co. Notifying Authorities of Its Plan to Shut Down Boston Globe

The New York Times Co. said last night that it is notifying federal authorities of its plans to shut down the Boston Globe within weeks, writes Howard Krutz of The washington Post this morning.

The Times Co. said that it will file today a required 60-day notice of the planned shutdown under the Worker Adjustment and Retraining Notification law after it failed to get the required millions in concessions from union officials that it said it needed to keep the newspaper running.

The move could amount to a negotiating ploy to extract further concessions from the Globe's unions, since the notice does not require the Times Co. to close the paper after 60 days. Talks between the two sides continued early today, wire services reported, after a midnight deadline to forge an agreement came and went. The threat of a shutdown puts the unions under fierce pressure to produce additional savings; the Boston Newspaper Guild promptly called the step a "bullying" tactic by the company.

Some industry observers have expressed skepticism that Times Co. Chairman Arthur Sulzberger Jr. would want his legacy to include the shuttering of the Globe, which his company bought in 1993.

NYT Co. Gives Globe Unions a One-Day Extension on $20M in Concessions

The Boston Globe received an eleventh-hour reprieve early this morning when its owner, the New York Times Co., extended the deadline for unions to agree to $20 million in concessions until tomorrow, according to a Boston Globe story by Robert Gavin and Keith O'Brien.

More than a half-hour after the midnight deadline passed, Globe management said enough progress had been made in talks with unions that the Times Co. would wait at least another two days before acting on its threat to shutter the Globe. Any agreement would still have to be ratified by each union's members.

"Because there has been progress on reaching needed cost savings, The Boston Globe will extend the deadline for reaching complete agreements with its unions until midnight Sunday May 3," Globe spokesman Robert Powers said in a statement.

Globe management released the statement as negotiators from management and the Globe's largest union, the Boston Newspaper Guild, conducted another marathon bargaining session that began yesterday morning and stretched past midnight. The Times Co. is seeking $10 million, or half of all union concessions, from the Guild, which represents more than 600 editorial, advertising, and office workers.

"We have given the New York Times Co. and Globe management proposals for deep cuts in our members' pay and benefits that we believe will save The Boston Globe," Daniel Totten, Guild president, said in a statement. "We are awaiting the company's response."

Talks between the Guild and the company are scheduled to resume tomorrow, according to a union spokesman.

Blog Rally to Support The Boston Globe

Paul Levy, president and chief executive officer of Beth Israel Deaconess Medical Center in Boston and author of the Running a Hospital blog at runningahospital.blogspot.com, has started a blog rally in support of the Boston Globe:

We have all read recently about the threat of possible closure faced by the Boston Globe. A number of Boston-based bloggers who care about the continued existence of the Globe have banded together in conducting a blog rally. We are simultaneously posting this paragraph to solicit your ideas of steps the Globe could take to improve its financial picture:

We view the Globe as an important community resource, and we think that lots of people in the region agree and might have creative ideas that might help in this situation. So, here's your chance. Please don't write with nasty comments and sarcasm: Use this forum for thoughtful and interesting steps you would recommend to the management that would improve readership, enhance the Globe's community presence, and make money. Who knows, someone here might come up with an idea that will work, or at least help. Thank you.

(P.S. If you have a blog, please feel free to reprint this item and post it. Likewise, if you have a Twitter or Facebook account, please add this url as an update or to your status bar to help us reach more people.)

New York Times Co. Threatens to Shut Down Boston Globe

The New York Times Co. has told officials at the Boston Globe, which it owns, that unless the newspaper's unions swiftly agree to $20 million in concessions it will shut down the publication, union leaders said in a Boston Globe story written tonight by Robert Gavin and Robert Weisman.

Executives from the Times Co. and Globe made the demands Thursday morning in an approximately 90- minute meeting with leaders of the newspaper's 13 unions, union officials said. The possible concessions include pay cuts, the end of pension contributions by the company and the elimination of lifetime job guarantees now enjoyed by some veteran employees, said Daniel Totten, president of the Boston Newspaper Guild, the Globe's biggest union, which represents more than 700 editorial, advertising and business office employees.

The concessions will be negotiated individually with each of the unions, said Totten and Ralph Giallanella, secretary-treasurer of the Teamsters Local 259, which represents about 200 drivers who deliver the newspaper.

"We all know the newspaper industry is going through great transition and loss," said Giallanella. "The ad revenues have fallen off the cliff. Just based on everything that's going on around the country, they're serious."

Catherine Mathis, a Times Co. spokeswoman, declined to comment. Globe publisher P. Steven Ainsley also declined to comment.

Rendell: Obama Coverage 'Embarrassing'

Pennsylvania Gov. Ed Rendell, a longtime Hillary Clinton supporter, while appearing at a roundtable discussion yesterday in Denver, took a whack at the mainstream media over its lovefest with Sen. Barack Obama, calling coverage of the presidential campaign embarrassing.

"Running for the most important office in the world, Obama got basically a free pass,” he said on the eve of the Democratic convention.

James F. Smith of The Boston Globe reported the comments this way:

DENVER -- Three of the most prominent figures in television news agreed during a forum today that media coverage of the presidential campaign has been largely fair, focused on important issues and relatively free of sexism.

Then Pennsylvania Governor Ed Rendell spoke his version of truth to power.

After the panel discussion with Tom Brokaw of NBC News, Bob Schieffer of CBS News and George Stephanopoulos of ABC News, Rendell offered concluding remarks at a brunch hosted by the Joan Shorenstein Center of Harvard’s Kennedy School of Government.

Rendell said that from his vantage point as a Hillary Clinton supporter, the primary-race coverage had focused more on personalities than issues; that sexism was undeniable in the coverage; and that the media’s treatment of Barack Obama during the primaries “was, ladies and gentlemen, embarrassing.”

Michael Calderone of Politico noted that Rendell and Brokaw were going back and forth about the coverage, including Lee Cowan's comments a while back.

Lee Cowan, a reporter for NBC, while discussing the media frenzy around Sen. Obama's campaign, admitted last spring that "from the reporter's point of view, it's almost hard to remain objective because it's infectious energy. It sort of goes against your core to say that as a reporter."



Finally, Rendell took a swipe at MSNBC, calling the cable network the official network of Obama's campaign.