New York Times Employees Approve Pay Cut
May 4, 2009 by Stephen Kersey
Filed under Business
The New York Times Company continues to look for ways to save money in the struggling newspaper industry. On Monday, New York Times union workers agreed to voluntarily cut their pay by 5% for the rest of 2009. On the newspaper’s website, a report indicates that the final voting tally shows 377 of the 413 votes were in favor of the pay cut.
Why would the union workers agree to the pay cut? First of all, without a pay cut, the newspaper itself may have been shut down before the end of 2009. Secondly, the workers will get a reported ten days of vacation in which they will still receive their pay. Third and perhaps most importantly, The New York Times Company says this move will save the jobs of 80 people with the newspaper.
In total, the New York Times Company hopes to avoid paying out more than $4 million due to this move. It now appears likely that the New York Times newspaper will be around for at least another year.
According to the deal, the 5% will be added back to the employees’ pay if certain financial goals are met by the advertising department.
New York Times (Image: Flickr)
