Boston Globe contract rejected; wages to be cut

The Boston Globe said Monday that it would impose a 23% wage cut next week after its largest union narrowly rejected $10 million in annual pay and benefit concessions that parent company New York Times Co. said were needed to keep the paper from shutting down.

The Boston Newspaper Guild, which represents 700 editorial, advertising and business employees, voted 277 to 265 on Monday against the new contract negotiated after the company said it needed $20 million in annual savings from Globe unions -- half from the Guild.

Six other Globe unions had approved concessions -- but they hinged on the Guild’s ratification of new terms.

The contract rejected by the Guild included an 8.3% wage cut, five-day unpaid furloughs and cuts in healthcare benefits, 401(k) contributions and pensions. It also would have eliminated lifetime job guarantees given to 190 Guild workers, mostly in exchange for concessions made in 1994, shortly after the publisher of the New York Times bought the Globe for $1.1 billion.

About 80% of union members voted on the concessions. Union leaders had presented the contract offer to the rank and file without a recommendation.

After the vote, the company and the union each said it would be willing to meet with the other side.