The Boston Globe has been threatened by the New York Times Company to close the company unless the labor unions agree to concessions, such as pay cuts, and pension contributions according to sources briefed on the talks. They are looking for 20 million in savings from The Globe, which has already done several deep cost- cutting and staff reductions.
The closing of The Globe was reported by The Globe on Friday evening, on its Web-site Boston.com. A meeting was held on Thursday giving the company an ultimatum.
If The Globe does not make concessions, it would loose 85 billion in 2009. "The Times Company chairman, Arthur Sulzberger, Jr.,and Catherine J. Mathis, chief spokeswoman for the company, each declined to comment or confirm the article."
In 1993, The Times paid 1.1 billion for The Globe. This figure was the highest paid every for a single American newspaper, which was very profitable in that decade.
"The Times Company also wants to end a provision in The Globe’s contracts that gives certain employees lifetime job guarantees." The company has ask employees, including some workers at the New York Times newspaper, to take a five percent pay cut for the rest of the year. The company is in the process of borrowing money and selling its assets too weather the storm.
"The Globe last year reported weekday circulation of 324,000, the 14th highest in the country, and Sunday circulation of 504,000, the 11th highest."
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This is a sad day in history for one of the most recognized papers in the nation. When I read this in the news I was truly saddened at the realization that our past generation daily morning ritual is disinigrating.
ReplyDeleteEach day, papers and magazines are loosing millions of dollars, people are being let go, and their once loyal audience is turning to a computer screen to get their daily dose of news.
Writers are told to change the way news has been reported for decades into simple short blogs containing only necessary information. They are loosing their jobs, taking pay cuts and slowly transforming to our ever changing economy.
I can't disagree with this decision though. We should all be looking foward and changing with the times, especially in tough times. We need to somehow stick with the necessities, save the earth, and somehow help build back up our desperate economic situation.
Another words, though we don't like loosing what we love, we are just going to have to accept that newspapers are yesterday's news, pay our respects, and let them go. The good news is we will at least be helping to save the environment.
I agree with you Cat. But this was coming. I am sad to see this happen. But yet I am not surprised that this is happening. We live in an age where technology changes everyday. Everything is going to the internet these days. This is just like the Seattle Post-Intelligence that closed up not too long ago. I bet you the next newspaper that goes under is the New York Times. Diane, very thought provoking post.
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