Monday, May 4, 2009
Talks between The Boston Globe and its unions to prevent the U.S. newspaper from shutting down stopped early Monday morning after a midnight deadline passed, and it was unclear when they would resume.
An hour after the midnight deadline passed, negotiations had broken down, but likely will resume sometime during the night, a source familiar with the matter, but not authorized to discuss it, told Reuters.
That source and another source familiar with the matter indicated that the bargaining process likely will continue throughout the night, and that word on a decision about what will happen to the Globe will wait until after daybreak in the United States.
Just before the deadline, the Globe’s parent company, The New York Times Co [NYT 5.40 0.02 (+0.37%) ], ratcheted up the pressure on unions at the Globe, threatening to close the paper within weeks if they do not deliver big cost cuts.
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The Times, the Globe’s parent company, said it would file a notice with the U.S. government on Monday that says it will shut down the paper if it cannot get millions of dollars in concessions from its unions.
It had set a Sunday midnight deadline for four unions to find $20 million in cost cuts at the Globe. Earlier it had set Friday as the deadline, but extended it after reporting Saturday that it had made progress.
If the Globe’s management and the unions fail to reach an agreement, one of the most well known and largest U.S. newspapers could close, leaving Boston without a daily, full-service general newspaper of comparable size.
The 137-year-old Globe is a mainstay of New England newsconsumers. The paper is the 17th largest in the United States by daily paid circulation, according to the U.S. Audit Bureau of Circulations. On Sundays, a day that many U.S. residents spend reading their papers, it ranks 13th.