The New York Times Co. threatens to shut down the Boston Globe if it can’t get additional concessions from the paper’s unions. According to an article in today’s Globe, the paper’s management gave the unions a copy of the WARN notice they would file with authorities if they didn’t reach an agreement. Law requires a 60 day notice of a planned shutdown.
The move is seen as a negotiating ploy to get more concessions from the Globe’s unions. Filing the WARN notice does not mean the NYT Co. must close the paper after 60 days, but they can legally do so.
If the Globe shuts down, it would leave Boston with just one daily paper, the Boston Herald – a tabloid that only has 10 news reporters and is going through some financial troubles of its own.
The Times Co., which recently mortgaged its Manhattan headquarters, borrowed $250 million bucks from Mexican billionaire Carlos Slim at a 14% interest, and underwent layoffs and salary cuts, expects the Globe to lose more than $85 million this year.
The Times Co. bought the Boston Globe in 1993. The company is looking to get about $20 million in savings from union concessions.
