Boston Newspaper Guild Ratifies Contract with the Boston Globe

Business Wire, Dec 15, 2006

BOSTON -- The Boston Globe announced that The Boston Newspaper Guild today ratified a new four-year labor agreement with the Globe effective January 1, 2006 through December 31, 2009, by a vote of 364 to 194. The Newspaper Guild represents approximately 1,000 full- and part-time employees at the Globe working in the newsroom, advertising, circulation, finance and other white-collar departments.

The new labor agreement provides for no wage increase in 2006. It does provide for wage increases in 2007 paid in two steps (January and July) totaling 1.3% for the full year, and wage increases for 2008 also paid in two steps (January and July) totaling 1.4% for the full year. There is provision for an economic (wage) re-opener for 2009. Payment of the wage increases is contingent upon combined Boston Globe and Boston.com revenues being equal to or exceeding each prior year's revenues.

The new agreement also provides for the integration into the Guild bargaining unit of approximately 38 new positions in news content and advertising from the New England Media Group's online website Boston.com. Employees in these positions are being relocated to the Globe's Morrissey Boulevard from Boston.com's location downtown. The balance of Boston.com's staff will remain in their current location.

In turn the Guild agreed to increased operational flexibility for the Globe in assigning work to Guild employees across the various entities of the New England Media Group, including writing and editing news stories and carrying out advertising sales initiatives.

In exchange for the above increased flexibility, the Globe agreed to make one-time payments into the Guild's Health Fund in 2007, 2008, and 2009, and ongoing annual payments into the Fund yearly thereafter.

"This Agreement recognizes the current economic challenges facing the Globe. It uniquely establishes a partnership with the Guild by placing into its jurisdiction news content and certain sales categories of the Globe's highly successful Boston.com online website and by recognizing Boston.com revenues in the wage increase comparisons. The Guild in turn agreed to give the Globe more operating flexibility across the NEMG in content and selling initiatives" noted Globe Senior Vice President, Gregory L. Thornton.

About the Boston Globe

The Boston Globe is part of The New York Times Company (NYSE: NYT), a leading media company with 2005 revenues of $3.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, nine network-affiliated television stations, two New York City radio stations and 35 Web sites, including NYTimes.com, Boston.com and About.com. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.