• by Erik Sass  @eriksass1, April 10, 2009

After making headlines with a threat to shut down The Boston Globe unless various unions agree to concessions, the New York Times Co. revealed some of its demands last week.

They are even more sweeping than many had feared, raising the possibility that the unions will choose to face off against management in the hopes they are bluffing.

Among other things, NYTCO said it would seek pay cuts of up to $20 million, equaling 20% of the current total payroll in separate negotiations with 13 different unions. Half of this is expected to come from the Boston Newspaper Guild, the largest union representing 700 employees, or half the newspaper's staff, with the other half coming from the remaining 12 unions.

According to the Boston Globe, which reported the meeting where the hoped-for concessions were announced, the corporate parent also said it would seek to revoke seniority rules and lifetime job guarantees. Plus, it planned to reduce contributions to 401(k) and pension retirement funds as well as health-care plans, or eliminate contributions altogether. Finally, it would eliminate sick days and reduce severance pay by 50%.

The unions and management are supposed to meet this Tuesday for further discussions. Unions have usually caved to management demands in similar negotiations at other newspapers in recent months, given the threat of closure. However, given the anger that greeted the proposals and the widespread perception that NYTCO will not shut down one of its biggest properties, there is a chance the unions may stick to their guns.

Some employees demanded that Boston Globe executives take more cuts in pay and benefits before rank-and-file employees. The head of the Boston Newspaper Guild described the proposal to nix seniority rules as a "non-starter."

Still, the newspaper will find management a steely opponent in any game of chicken, as NYTCO is subjected to withering criticism from investors who have seen the stock price plummet from about $23 in January 2007 to about $5 today.

The company's total revenues declined 8.4% in 2008 to $2.83 billion, with ad revenues falling 14.2% to $1.67 billion. Losses at the New England Media Group accounted for a disproportionate part of these declines. Total revenues declined 12% to $523 million, with advertising revenue tumbling 18% to $319 million.

In 2008, the company took a $160.4 million non-cash charge to reflect impairment of goodwill and other intangible assets. This came just two years after an $814.4 million non-cash charge for the same purpose in 2006. According to the Audit Bureau of Circulations, from 2007-2008 the Globe's weekday circulation fell from 364,600 to 323,900 -- a drop of 11%.