Playing a Game of Chicken at the Boston Globe

One of the best things that can happen to a newspaper is when its readers start feeling like they own it. They become so bound up in the paper that they take offense at any effort to change it or reduce it. That's real customer loyalty.

One of the worst things that often happens to a newspaper is when its employees—especially in the newsroom—start feeling like they own it. They act like the paper is some sort of democracy in which they have a significant say in every aspect, and that they can defy management because, well, it's "our paper." The suits in the front office can pound sand, in this view, when the newsroom knows best what it thinks is good for the paper and its business.

Unfortunately, that's the kind of foolishness that's manifesting itself at the Boston Globe, where the Boston Newspaper Guild membership votes June 8 on a package of pay cuts that the paper's true owner, The New York Times Co., says is required to keep the Globe alive. The Guild's leadership, while not taking a formal position on these cuts—a tough 8.4 percent salary reduction, plus five days of unpaid furlough (bringing the cut closer to an actual 10 percent) and various benefit reductions—agreed to put them to a membership vote after some very contentious negotiations with the Times Co. During those talks, the Times bluntly threatened to close the money-hemorrhaging paper if it couldn't get the concessions it wanted.

Not so fast, says the Guild's rank and file, or at least some members of it. They're circulating a petition urging management to limit the cuts to 5 percent, with the clear threat that the concession package will be rejected by a majority of the Guild's 600 members if the Times Co. doesn't see it exactly the way the newsroom does. (Other Globe unions, incidentally, have agreed to the requested cuts.) Feeling possessive about the Globe, the newsroom crowd seems to think it has a right to dictate business terms to the true owner of the paper. 

Well, good luck with that. Look, nobody wants a pay cut. That's totally understandable. And the Times' position has been made difficult by revelations like the New Yorker's report this week that Times columnist Tom Friedman (three Pulitzers, but never mind) enjoys what amounts to an unlimited expense account. That's further inflamed the Boston Guild members, unsurprisingly.

But the renegade Boston newsies are playing with fire. By all indications the Times is very serious about the need to make major cuts at the Globe—or the paper will be closed. Indeed, the Times and the Globe's management have indicated they'll implement an across-the-board 23 percent pay cut if the agreed-upon deal is rejected by the Guild membership. And nobody's ruling out the possibility that the Times could decide to simply close the door and walk away, especially if it feels like it's dealing with an intractable workforce. In the worst advertising economy in memory, with ad revenue plummeting and the Globe losing more than $1 million a week, the Times' request for major cuts is understandable. (Indeed, it appears that the planned cuts still won't cover the paper's losses.)

The Boston union members certainly have the right to decide their own future through collective bargaining. But they also need to understand what that future might be. They need to appreciate the realities of the situation, one of which is that the Globe is in dire financial straits, and another is that they're not in ultimate control of the paper–its corporate owners are, like it or not. The Guild members get to vote on the concessions, but this ain't a democracy, no matter how much they resent the Times ownership or feel like the Globe is "their" paper. 

This is a very dangerous game of chicken to be playing. By rejecting a 10 percent cut in hopes of getting an idealized 5 percent cut, the Globe's Guild members may be setting themselves up for a 23 percent pay cut—or a 100 percent job cut. That doesn't seem like a smart trade-off.

7 thoughts on “Playing a Game of Chicken at the Boston Globe

  1. The point you are missing is that cutting the salaries of the Guild journalists by 10 percent, while managers’ salaries have been cut by only 5 percent, is patently unfair, particularly when you understand that often Guild members in the newsroom are performing exactly the same work as managers in the newsroom in some departments. While the publisher can claim that managers have also given up their annual bonuses … which, if his math is right, were something in the neighborhood of 11 percent a year … Guild members have not had a pay increase in four years and get no bonuses at all.
    Imagine the reaction if Congress passed a law imposing a 10 percent tax increase on everyone, except for people who work for the government. If you’re going to cut salaries, cut them across the board at the same rate, period. Cutting editor X’s pay 10 percent because he/she is a Guild member, and cutting editor Y’s pay 5 percent because he/she is not … that’s just flat out discrimination.
    If I were (still) a Guild member, I would vote “no.” The Guild itself sent out a spreadsheet comparing the proposed cuts (including benefits, like 401k and 401a contributions, health care increases, etc.) with the 23 percent cut in salary threatened by the Globe (which would preserve the 401k and other benefits). It’s a difference of maybe $3k a year in total compensation for someone making $75k.

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  2. You have this all wrong, Mr. Potts.
    If anything, the newsroom employees behind the petition are fully aware of the consequences of rejecting the contract. That is why they are circulating the petition. They know there are reckless union members campaigning for a no vote in the hopes that management will return to the table and somehow keep the lifetime guarantees. Those are the delusional union members who are playing a game of chicken, not the petition authors. This petition at least allows management to know there is another avenue should the contract be voted down. This is not about getting more money out of the Times company. I can live with an 8.4 percent cut, though it’ll hurt like hell. I plan to vote yes, but have signed the petition because it’s a last-ditch effort to save the newspaper if the vote-no campaign is successful. I think the comments by Beth Daley and Scott Allen make that perfectly clear. It says on this blog that you are a recovering journalist. Perhaps during your retirement, your ability to read carefully has atrophied?

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  3. Obviously, this is an emotional issue, with lots of complicated nuances that may only be clear to those on the inside. I stand by the sentiments expressed (as a neutral observer) in my post, and I think these comments illustrate the complexity and emotion.

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  4. To paraphrase the estimable Marge Gunderson, “I’m not sure I agree with you a hundred percent on your analysis, there.” Phrasing like “… the newsroom crowd seems to think it has a right to dictate business terms to the true owner of the paper…” undercuts your claim of being a neutral observer and leaves little doubt where your sentiments lie. You don’t talk about the “management crowd,” and the petitioners (they are not demanders) betray no indication that they “seem to think they have a right to dictate.” In fact, if you’re paying attention, those who wrote the petition fear it is going down to defeat, and are trying to save the agreement. These people WANT an agreement, and see their more fiery colleagues willing to scuttle the deal, and the paper, because they consider it too onerous to support.

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  5. Oh, goodness. Mark Potts, “entrepreneur and consultant who works with media and internet companies,” supports the management wisdom of paying itself generously while telling employees to be “realistic”! Surprise, surprise.
    Keeping media companies in business for now is good for them, and for Mark Potts — on their 2009 tax returns. But busting unions and decimating the ranks of journalists is not going to pay off, not even for the Sulzbergers.

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  6. Gee, phillygirl, will it help to know that I was a Guild member for years? Sorry, but there’s a time and a place to play hardball–and a time when playing hardball could cause you and your colleagues to lose their jobs. The Globe lost $85 million last year, the Times Co. is in dire straits. As the post says, this is a very dangerous game of chicken.

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