June 5, 2008

Dear Colleague,
Globe Publisher P. Steven Ainsley, and other top management, held a meeting with leaders of its 13 labor unions on June 3 to discuss the company's financial condition.

The Globe's declining financial performance, in terms of revenue and circulation, was discussed. The company plans to ask each union to reopen contracts for the purpose of operational "flexibilities." This is not a request we take lightly. Our legal counsel, David Wanger, has said the company is within its right to ask.

The 13 unions -- under the umbrella of The Boston Unity Council of Newspaper Unions -- have decided to stand together, supporting each other through any and all upcoming discussions.

The Globe has hired The McKinsey Co., a national consulting firm, to develop a new business plan for the company. Their consultants have been analyzing Globe operations for the past several months. A report/plan from them is due soon, management stated.

The Globe reviewed cost-cutting steps already taken: buy-outs since 2001, including 80 this year across The New England Media Group; wage freezes which our members have endured since 2006; reducing the web/width of the paper; closing foreign bureaus; consolidating operations, such as the upcoming move of Boston.Com employees from leased space on Congress Street to Morrissey Boulevard.

Discussion was also held about closing the Billerica plant. No decision was announced, and it would take 18 months to complete any such move, The Globe said.

Two months ago, The Guild requested to have our own independent auditor examine Globe financials for The New England Media Group. The Globe never responded to the request, which was made multiple times. On Monday, the company did state that each union could have a representative examine not only revenues, but profit and loss statements. All must sign a confidentiality agreement not to reveal the numbers, however.

The Guild will act immediately, with assistance of our parent union, The Newspaper Guild/Communication Workers of America. We have already been in touch with Bernie Lunzer, president-elect of The Newspaper Guild, to have a financial consultant provided to us free of charge.

The Guild recognizes the financial challenges facing The Globe. We have first-hand knowledge of the relentless pressure facing The Globe, and the newspaper industry in general. We have lost hundreds of members in recent years to buy-outs and outsourcing, such as janitorial services to private contractors, and customer service representatives to a non-union shop in India.

Clearly, the company believes more must be done. Ainsley stated, "We have to be a smaller operation. We have to do our business differently at all levels."

Be assured, The Guild will develop its own set of cost saving recommendations. Among them: The Globe stop paying bonuses and/or raises to managers; follow a hiring freeze after non-replacement buy-outs have been approved; cease the hiring of consultants, now working across the company.

These are only a few suggestions. Going forward, we will need your help as we work to protect our jobs, wages and benefits.

If you have any questions, please do not hesitate to contact myself, members of the executive committee, or your union delegate.

In Solidarity,

Daniel B. Totten
President

June 10, 2008