The Boston Globe, owned by The New York Times Company, said Monday it is prepared to file notice under federal law that could lead to the closure of the newspaper within 60 days as negotiations with its union, the Boston Newspaper Guild, have hit an impasse.
'The Times company said it would file a notice under federal law stating its intention of closing The Globe within 60 days,' The New York Times said.
The Boston Globe has been looking for $20 million in labour concessions, including about $10 million from the Boston Newspaper Guild, the largest union that represents Globe employees.
Negotiations between The New York Times Company and the Boston Newspaper Guild over concessions that could avert the closure of The Boston Globe apparently reached Sunday's midnight deadline without a deal.
The union in a statement has said it had made a proposal that exceeded the management's demands and added that the threat of a closure notice is 'representative of the bullying manner in which the Times Company (The Boston Globe) has conducted itself during these negotiations.'
The union further added that 'despite the company's hostile tactics, we continue to negotiate in good faith and work diligently toward an acceptable outcome.'
On Sunday, The Globe spokesman Robert Powers had said that "we have provided our unions with a copy of a notice that we are prepared to file tomorrow if we are unable to reach an agreement by the midnight deadline."
As per The New York Times report, in early April the company had threatened to close The Globe if labour unions refused to accept major concessions such as pay cuts and reductions in pension contributions as well as the end of some lifetime job guarantees.
The Globe is reportedly on track to lose about $85 million this year amid the worst advertising decline for newspapers since the Great Depression.
The report further said that 'The Times Company has also been seeking to sell its stake in the Boston Red Sox baseball team and the regional sports network NESN.'
In the recent quarter, advertising in The Times Company's publishing segment fell 28.4 per cent, but the worst fall came in the New England Media Group, of which the largest fall is in The Globe. Advertising in that unit fell 31.6 per cent.