The Boston Globe said Wednesday that it had reached an agreement with the newspaper's drivers to cut wages by 5 percent and eliminate 10 holidays starting in 2009.
The wage concessions -- unprecedented in the modern history of the Globe -- covers nearly 200 union drivers with Teamsters Local 259, who deliver the Globe and the New York Times. Globe management described the agreement as "a critical first step" in working with the company's unions to cut costs.
The Teamsters' treasurer, Ralph Giallanella, said in a statement, “The agreement was a difficult one for the membership to ratify, but it promises the best possible outcome over the next two years for union members, including the preservation of driver jobs, and the paper.”
Globe management declined to say how much the wage concessions would save the company. Globe Senior Vice President Greg Thornton called the wage and vacation cuts "necessary cost reductions to offset declines in revenue due to media restructuring and the slowing economy."
The company declined to say whether other unions would be asked to accept wage cuts. Globe spokesman Bob Powers said, "We've reached out to other unions."