Herald publisher, unions talk

Boston Herald publisher Patrick J. Purcell met with the paper's labor unions yesterday afternoon and said that he is looking to find savings of $7 million, that he would provide details in future meetings on ways to make cuts, and that he had no plans to sell the economically struggling paper.

Purcell said in an interview that he wants to reach agreement with the unions on ''changes in the way we do things" by the time the fiscal year ends in June.

Purcell characterized the meeting as ''a frank and open discussion of the overall situation of the Herald. We've identified ways in which we can do things more efficiently and effectively and less costly." He added, ''You never feel good about doing what we're doing, but I think everybody is resigned to the situation."

The Herald's financial health has been hurt by stagnating circulation and advertising revenues that have fallen in the past fiscal year. In addition, the paper tried unsuccessfully to stop The Boston Globe's recent acquisition of a 49 percent stake in Boston Metro, arguing that the combined strength of the Globe and the free daily tabloid would unfairly tilt the competitive balance in the marketplace against the Herald.

Yesterday's meeting came after Purcell acknowledged that he is looking at a number of options that include reducing the size of the paper, narrowing the Herald's coverage area, and laying off workers. But according to several participants, he did not outline any specific cost-cutting measures during yesterday's discussions.

The Newspaper Guild of Greater Boston, which represents about 280 Herald editorial and commercial employees, said in a statement: ''The Guild agreed in principle to work with the company to help achieve the economies needed to keep Boston a two-newspaper town. Nothing specific was unveiled. Details of the Herald's needs will be presented to us in upcoming bargaining meetings with all of the individual unions in the next few days."

The Guild has been operating without a contract since November 2003 and has not had a formal negotiating session since February. According to Guild president Lesley Phillips, the company has scheduled an April 4 meeting to put ideas for cuts and concessions on the table.

To find what Purcell called ''efficiencies across the company," the publisher hired two consulting firms. Dario Designs is evaluating the Herald's physical plant and Jack Ryan & Associates is looking at efficiency and manpower issues.

The Herald currently has about 200 editorial employees and a total workforce of about 800. The most recent significant round of staff reductions occurred in late 2003 when the company enacted a series of layoffs and buyouts that it said affected 19 employees.

A sale of the Herald has been the subject of recent speculation inside the paper, and it came up at yesterday's meeting. But Purcell said he quickly extinguished the rumor by insisting: ''That's not happening. We've got to get the Herald fixed."

Mark Jurkowitz can be reached at jurkowitz@globe.com.