September 1, 2014
BOSTON (AP) - A new contract agreement between The Boston Globe
and its largest labor union ends months of turmoil at the newspaper
and could make it more attractive to potential buyers.
But analysts say the agreement is not likely to be the cure-all for the money-losing newspaper as it struggles with the movement of readers and advertisers to the Internet.
On Tuesday, the Boston Newspaper Guild overwhelmingly approved a
new contract that gives the newspaper $10 million in concessions,
including a salary reduction of nearly 6 percent.
Poynter Institute media business analyst Rick Edmonds says that while the labor contract is a plus, the paper's owner, The New York Times Co., may have to make further cuts if it wants to attract buyers.
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