According to the Wall Street Journal:
The Boston Globe’s survival was jeopardized Monday when its largest union rejected a package of wage and benefits cuts that management had deemed necessary to keep New England’s largest daily alive.
Members of the Boston Newspaper Guild rejected by a vote of 277 to 265 a proposal by the Globe’s parent, New York Times Co., to cut costs at the unprofitable publication.
Times Co. two months ago had told union leaders the paper was on pace to lose $85 million this year and would be closed unless its unions agreed to $20 million in concessions.
What are these guys thinking? To me, this just goes to show the incredible stupidity of organized labor. But maybe it is just a smart move from union members who know that Obama won’t let them down. If that’s the case, I wonder how the president will swing it. Especially since he claims to be seeking budget rules to restrain spending (hello tax increases!).
Of course, as one of the WSJ commentator noted, he could pay for the Boston Globe bailout with the $50 billion of TARP money returned by banks.
Another commentator sends that information:
By the way, my neighbor (up here in southern NH) just got a notice from the BG saying his subscription was going up .75 cents daily. Right after his laughing fit he called and canceled on the spot.
Read the whole this here.