Paper handlers union is fourth to approve concessions at Boston Globe

http://www.boston.com/business/articles/2009/05/29/paper_handlers_union_is_fourth_to_approve_concessions_at_globe/

May 29, 2009

A fourth Boston Globe union last night approved concessions that the Globe's owner, The New York Times Co., says it needs to continue to operate the money losing newspaper.

The union representing 26 full- and 35 part-time paper handlers, who move rolls of newsprint to presses, ratified a contract with $400,000 in pay and benefit cuts, union officials said. They declined to disclose the vote totals or terms.

"No one's happy," said Martin Callaghan, the union president. "But they feel they have to do their part to keep the place open."

Globe spokesman Robert Powers said, "We are pleased that the contract has been ratified, and thank the members of the paper handlers union for making difficult but necessary sacrifices."

The Globe's largest union, the Boston Newspaper Guild, will vote June 8 on $10 million in concessions. Last night, guild president Daniel Totten said in an interview that he will vote to reject the contract proposal in hopes of negotiating a better deal.

FULL story at link.

Why would the New York Times or Boston Globe have ANY debt? Why would any of the old retailers have ANY debt?

No one seems to ask these questions. No one seems to want to hold accountable those who embezzled, legally perhaps but certainly not ethically, millions from these companies over the years.

Imagine that I own a corner store. It's been paid for since 1990. I bring in a partner who pays me $500K for half of that store. The $500K was borrowed. I took his money, and bought myself a house, and BTW we reorganized the store as a corporation before I did this. Then as a partner in that business, I borrow $500K from a bank run by a friend of mine. I pay myself that $500K and buy my kid a house. Now my paid for business is on the hook for $10,000 a month in payments. Clearly, the wages of the employees are the reason the place isn't making money anymore.