The Boston Newspaper Guild — which rejected a deal with the Globe's parent operation, the New York Times Company, earlier this month — has tentatively agreed upon a similar deal in order to avoid deeper cuts. The cuts add up to $10 million in savings for the Times Company, which could make it more attractive to sellers (it has hired Goldman Sachs to oversee a sale). The deal is not so different from the one originally offered, though it provides a smaller pay cut of 5.9 percent in exchange for larger benefit cuts. Also, the pension plan would be frozen, and employees who currently enjoy lifetime job guarantees will no longer have the privilege. The deal still needs to be ratified by the union's 700-member body. It's expected to go to a vote on July 20, and it's expected to pass handily — the last offer only failed by twelve votes, and that didn't have the approval of Guild leadership. Also, the alternative is to be forced to accept a 23 percent pay cut, so that's, you know, compelling.
Globe, Guild Reach Pact [Boston Globe]