As if newspapers didn’t have enough problems – including the recent loss of yet more staff at the Charlotte Observer — the big news blowing through the journalism world today is that the New York Times Co. is threatening to close down the Boston Globe. The Globe, which has been one of the country’s great metropolitan dailies for over 100 years, has been losing money, as have most of the country’s larger newspapers. With losses totally $50 million last year at the Globe, the paper’s owners, the NY Times Co., will be forced to shut its doors unless … wait for it … the newspaper’s workers and their unions make drastic concessions worth $20 million. Yes! U.S. corporate traditions will never die. Truth is, when upper management delivers the “union concessions or a shutdown” choice, no matter what kind of company, you never know whether they’re using a crisis to weaken their unions or if the trouble’s as bad as they say. In this case, though, it looks very serious. As recently as a few years ago, the Globe was judged to be worth around $500 million. Today? Twenty million. The Globe is the largest and most influential daily paper to be threatened with extinction so far during the current financial catastrophe that is spreading through the industry.
This article appears in Mar 31 – Apr 7, 2009.
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