CHICAGO The small machinists union at The Boston Globe has ratified a new three-year labor contract with pay cuts and unpaid vacation days that it turned down this summer as its New York Times Co. parent was threatening to sell or shut down the paper unless it obtained big cost-savings from unionized employees.

The Times Co. said Monday that The International Association of Machinists, Lodge 264, last week voted to ratify the new a vote of 10 to 3.

Under terms of the new pact, wages will be cut by 9% pay cut; one week of paid vacation will be eliminated as will five paid holidays; four unpaid furlough days will be taken each year; double-time pay is eliminated; Sundays will be worked at straight time pay; and there will be a new lower wage rate for new hires.

Last June, the machinists turned down a contract proposal with similar terms. At the time, the Times Co. said it needed $20 million in cost savings from its 10 major unions, or it might be forced to sell or shut the newspaper. It later pulled the Globe off the market, saying it had achieved sufficient savings.

The Times Co. said it expects the new Machinists contract to provide annual cost savings of $350,000.

The new labor agreement covers the years 2008, 2009 and 2010.

"The new contract completes the last of the 10 major labor agreements at the Globe that are expected to result in $20 million in annual savings that are a critical component of the Globe's restructuring plan," Globe Senior Vice President Gregory Thornton said in a statement. "We recognize and appreciate the sacrifices our unions all made this past year to assist the Globe in its restructuring."

In his own statement, Michael Vartabedian, the Machinists' business agent and the union's principal negotiator, said, "The concessions our members agreed to tonight were extremely difficult to take, but they understand what sacrifices needed to be made to make the future of The Boston Globe brighter."

Source: Nielsen Business Media

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