Business News
Teamsters Local 259 Ratifies New Labor Agreement with the Boston Globe
Thursday 27. November 2008 - The Boston Globe announced today that Teamsters Local 259 has ratified a new two year labor agreement with the Globe, effective January 1, 2009 through December 31, 2010. The agreement covers almost 200 union drivers who deliver the Globe, The New York Times and other products. The vote on Sunday, November 23, was 115 in favor and 25 against.
The new agreement will afford the Globe significant annual savings at a time when the newspaper industry is making the financially difficult transition to a digital and print business model. The provisions contained in the agreement will help the Globe increase efficiency in its print and distribution operations. The union agreed to a 5% wage reduction; the elimination of 10 holidays; a restructuring of vacation eligibility (lengthening the time for eligibility); and an increase in the number of new positions that can be filled with lower-wage hires.
Part of the reduction in expenses is tied to the closing of the Globe’s printing facility in Billerica, slated to occur in 2009. When that plant closes, all of the Globe’s printing will be consolidated into its main plant in Boston on Morrissey Boulevard. The Boston plant will print the Globe, the New England edition of The New York Times as well as several Gatehouse Media publications.
The Globe agreed to offer a voluntary plan allowing pre-tax health and welfare benefit payroll deductions, as well as additional one-time retirement incentives to provide voluntary retirement opportunities for positions that might be affected as a result of the Billerica closing. In addition, the agreement provides for bonus payments to drivers contingent upon the Globe meeting Company goals.
“This agreement represents a critical first step of working with our unions to implement necessary cost reductions to offset declines in revenue due to media restructuring and the slowing economy. The Globe appreciates Local 259’s leadership role in helping to make our operation more efficient in this tough economic climate,” said Greg Thornton, senior vice president, The Boston Globe.
Local 259 Secretary Treasurer, Ralph Giallanella noted that, “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.”