Boston Globe and Boston Mailers Union Sign Five-Year Labor Agreement.

BOSTON -- The membership of Boston Mailers Union Number 1, International Brotherhood of Teamsters (IBT) approved a new, five-year labor agreement with The Boston Globe on Sunday, July 1, that helps the newspaper significantly control future labor expenses while giving the union improved health care options and some future hiring opportunities.

The agreement, which is retroactive to January 1, 2006 and continues through December 31, 2010, was hammered out in round-the-clock negotiations in early June. The vote was 112 in favor and 69 against.

No wage increases are provided for in the agreement. However, the company agreed to make bonus payments to eligible union members of up to $450 annually during this agreement provided the Globe's revenue exceeds prior year revenue levels. However, no bonus payments will be paid out for either 2006 or 2007.

The contract also reduces current wages for some groups of existing employees and lowers all wage rates for new employees. The new wage structure is designed to significantly reduce the Globe's current costs as well as make the overall wage rate structure more competitive with the marketplace for the Globe's daily and Sunday insert business. The contract also allows for the hiring of former composing room employees with job guarantees into mailroom positions.

With negotiated improvements in staffing levels and other productivity changes, the Globe estimates the total cost savings to be about $9.6 million over the remainder of the agreement or about $3 million per year, partially offset by the payments discussed below. Under the new agreement, drug and alcohol testing is also mandatory after any reportable accidents in the workplace.

The union obtained as a quid pro quo for the above changes annual payments into its health fund of about 25% of the above savings over the same period of time. In addition, the Globe will make one-time lump sum payments ($540 per grandfathered eligible journeymen) into qualified health care accounts in 2009, 2010 and 2011. In all, the quid pro quo payments will total about $2.6 million over the term of the agreement. The union also obtained assurances that its non-Globe members would be eligible for jobs at the Globe at the negotiated reduced rates as openings occur.

"The new labor pact was the result of six months of intense bargaining between the union and the Globe that resulted in major cost savings for the paper but also provided continued job opportunities and improved health care options for the union and its rank and file, in return," said Globe Senior Vice President Greg Thornton.

About The Boston Globe:

The Boston Globe is wholly owned by The New York Times Company (NYSE: NYT), a leading media company with 2006 revenues of $3.3 billion, including The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, WQXR-FM and more than 30 Web sites, including NYTimes.com, Boston.com and About.com. The Company's core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.