In the game of chicken the Newspaper Guild was playing against the management of the Boston Globe, the lifetime employment guarantee that almost got the paper shut down turned out to be worth $33,000 a person.
According to the Wall Street Journal, the deal reached between the Globe—owned by the similarly battered New York Times—and the union included an 8.4% pay cut and the “elimination of lifetime job guarantees held by 190 members in exchange for a $33,000 payment plus severance for each of those guaranteed employees who gets laid off.”
The other details from WSJ:
- The pay cut will save about $3.3 million.
- Freezing pensions will save $3.2 million
- The workweek will expand to 40 hours from 37.5, saving $168,000 in OT.
- Company 401(k) contributions will disappear, cutting $648,000.
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