Boston Newspaper Guild rejects cuts 277 to 265

The Boston Globe's largest union last night narrowly rejected $10 million in wage and benefit cuts, and about an hour later the paper's owner declared an impasse in negotiations and imposed a 23 percent pay cut on the union's members, effective next week.

The move by The New York Times Co., which said the Globe's dire financial condition gave it no choice, could quickly shift the bitter contract dispute from the bargaining table to the National Labor Relations Board and federal courts. The Boston Newspaper Guild, which represents nearly 700 editorial, advertising, and business office workers, has told members it would file unfair labor practice charges with the board and seek a court order blocking the Times Co. from imposing the pay cut.

In a statement, Globe spokesman Robert Powers said that management was disappointed by the vote and that the company must now move ahead with the deep pay cut. The company sent a letter advising Guild officials of the move last night.

"As we have stated, the $10 million in cost savings from this multifaceted proposal is essential to The Boston Globe's financial future," Powers said. "We regret having to take this action, but have no financially viable alternative."

Guild president Daniel Totten said he would not comment, until today, on the company's decision to implement the 23 percent pay cut. After the vote, Totten said in a statement: "With today's vote, members of the Boston Newspaper Guild have said that The New York Times Company must do better than the offer that was presented. Globe workers and the New England community understand that the quality of The Boston Globe, an institution so vital to the life and culture of the region, depends on the fair treatment of the men and women who work so hard to produce it."

Guild members, with about 80 percent participating, voted 277 to 265 to reject the company's contract offer, which included pay cuts totaling more than 10 percent; deep cuts to health and retirement benefits, including a pension freeze; and the elimination of lifetime job guarantees for about 170 veteran members.

The Guild is the only one of the Globe's four major unions to reject concessions the Times Co. said it needs to continue operating the Globe, projected to lose $85 million this year without significant cost savings. In early April, the Times Co. said it would close the Globe, New England's largest newspaper, unless the paper's unions agreed to a combined $20 million, with half demanded from Guild.

Unions representing mailers, press operators, and delivery truck drivers approved concessions worth nearly a combined $10 million.

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