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Globe, Largest Union Reach Tentative Pact

The Associated Press

BOSTON -- The Boston Globe has reached a tentative agreement with its largest union.

The Globe and the Boston Newspaper Guild issued e-mail statements late Tuesday announcing the deal. Guild members are set to vote on the agreement July 20.

Under the agreement, the Globe, which is owned by New York Times Co.(NYT Quote), will save $10 million through salary and benefit reductions. The agreement includes a salary reduction of just less than 6% and changes the language in contracts regarding job security.

The 23% wage cut will remain in place until the Guild votes in July. In the meantime, employees will receive a lump sum payment to partially compensate for wages lost.

Guild President Dan Totten said further details would be available at a union meeting Wednesday.

"Our aim throughout our negotiations has been to achieve the necessary savings in a way that causes the least hardship for our employees," Globe Publisher Steve Ainsley said. "We're very pleased to have reached an agreement that accomplishes those goals."

Two weeks ago, Guild membership narrowly rejected a contract that called for an 8.3% wage cut, unpaid furloughs, benefit cuts and the elimination of lifetime job guarantees for nearly 200 staffers. Times Co. then imposed the 23% pay cut, saying it was necessary to keep the Globe from being shuttered.

Times Co. has said it needs $10 million in wage and benefit concessions from the Guild on top of $10 million in concessions it negotiated with six other unions.