Fort Worth Star-Telegram Orders One-Week Unpaid Furlough

Management at the Fort Worth Star-Telegram in Texas has ordered its employees to take a one-week unpaid furlough between April 5 and July 4. Here's the memo:

To: All Employees
From: Gary Wortel
Subject: Furlough Announcement
Date: March 22, 2010

Although we're seeing improvement in several advertising categories, the economic climate remains unstable and revenues continue to be negative year-over-year. Unfortunately, revenues have not grown enough to offset our expenses. Regrettably this necessitates further cost-saving strategies.

Effective April 05, 2010 we’ll implement a one week unpaid furlough program. The furlough period will be from April 05, through July 4th, 2010. Shortly you will be receiving:

· A scheduling form to complete and return to your manager no later than April 5, 2010.

· Q & A to assist you in understanding how the program works It's imperative that we remain diligent in reducing expenses and continue to focus our efforts on growing ad revenue. I appreciate that everyone is working hard toward both of these efforts.

After receiving the furlough Q & A and the scheduling form, please feel free to contact anyone on the Human Resources team with questions.

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.

Portland (Maine) Press Herald Guild Accepts Concessions

The Portland (Maine) Press Herald's largest union voted by 161 to 19 this afternoon to accept wage and benefit concessions in an effort to allow the Seattle Times Co.'s sale of its Blethen Maine subsidiary. A union official told reporters that he expects the deal to close by mid-June.

Three more unions still need to vote on the deal, which includes a 10 percent wage cut, a two-year pay freeze, a pension freeze and a two-year suspension of 401k contributions. In return, employees get a 15 percent stake in the company.

Richard Connor, editor and publisher of the Times Leader in Wilkes-Barre, Pa., has been negotiating to buy the Press Herald, the Morning Sentinel in Waterville, the Kennebec Journal in Augusta and other Blethen Maine properties.

He thanked the union for its months of work "to reach what we believe will be a turning point for all three Blethen Maine newspapers."

Newspaper Guild President Tom Bell told the Associated Press that concessions from the union — including an unknown number of layoffs — represent members' contribution to an ownership stake. Under the deal, three union representatives will serve on the board of the company.