Fascist thugs try to break union. That might be a headline you would see about another American corporation in the the New York Times. You won't see that headline because it is the Times itself that is demonstrating those tactics in its dealing with its wholly owned subsidiary, the Boston Globe.
The Globe as currently constituted is rapidly failing in its business and there isn't much the ownership of the Times can do about it. It is reported that the paper lost fifty million last year and is on target to lose another 85 million dollars this year. With ads and subscriptions continuing to fall and a bottom in the industry no where is sight how will 20 million dollars in forced union concessions stop the bleeding?
The Times itself is in danger for a variety of reasons including a huge debt load, a real estate project that was ill advised, dramatic changes in the industry and finally entrenched genetic leadership that is incompetent. There can be no doubt that given a choice, the Times will opt for self preservation so you know the Globe would be sacrificed first.
In an age when a 2 or 3% cut in municipal or state budgets are referred to as Draconian or cutting to the bone, the 25% reductions sought at the Globe are indeed drastic. Mary White, who leads Teamsters Local 1 which represents the 250 mailers said the Times Co. "is seeking a 25 percent wage cut, the virtual elimination of its contributions to their health care plan, and an end to company contributions to pensions."
This is the fourth or fifth year in which layoffs and concessions have been on the table at the Globe and the numbers suggest it is not over. If we are nearing the end game for the paper as it is currently constituted then what strategies can be put in place to save the paper as an institution in Boston?
Getting rid of New York in the mix would be the first order of business but short of finding an outside buyer with really deep pockets what can be done? Bankruptcy is an option since it has been reported that the Globe is a 100% owned subsidiary of the Times Corp. and therefore could go into bankruptcy without dragging in the parent company.
If that does happen it would bring up a number of interesting possibilities for potential Boston owners or indeed in my view the most viable option which is an employee purchase of the Globe. The employee unions have both the most to lose as well as the most influence over controlling costs at the paper. There is certainly a break even point somewhere in the mix that would enable the paper to go on while protecting as many union jobs as possible.
What that point is and how much sacrifice the unions would have to make remains to be seen but it would seem to be a better alternative than watching the paper and its jobs rapidly disappear. An employee buyout would save the most jobs and bring the most equity to the employees if the ship could ultimately be righted. The benefit to the readers of course would be to clean out the Times influence and place the paper in the hands of local stakeholders instead of New York based ideological nitwits.
