NEW YORK (Reuters) - The New York Times Co said on Tuesday that it does not plan to close The Boston Globe, a day after its largest union rejected a $10 million package of concessions aimed at cutting costs at the 137-year-old newspaper.
The Boston Newspaper Guild narrowly rejected the concessions, which include an 8.4 percent pay cut, elimination of some benefits and furloughs, on Monday evening.
In response, the Times said that it would cut guild members' pay by 23 percent to get the savings that it needs.
The $10 million is part of a $20 million package of cost cuts that the Times wrested from several unions at the paper. The Times said the 23 percent pay cut would account for the newspaper guild's cuts after the union rejected the package.
"Because we have achieved the $20 million in savings we needed, we do not foresee closure at this time and are focused on executing the Globe's turnaround plan.
The Times's statement removes fears among media experts and Globe employees that the company could shut down the paper, but does not resolve lingering resentment among the union members. The union said on Monday evening that it still wants to sit down with the Globe's management to hammer out a new deal.
The Times has said that the Globe is on track to record an $85 million operating loss this year and that it has to save money to keep the paper viable.
Reporting by Robert MacMillan; Editing Bernard Orr