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Boston Globe crisis talks drag on | |
(about 2 hours later) | |
The owner of the Boston Globe has extended talks with unions to try to save one of America's best-known big city newspapers from closure. | |
The owner, the New York Times, is asking Boston Globe staff to accept lower salaries and cuts in pension and redundancy benefits. | |
It has said it will file a notice with the government that it will shut the paper if there is no agreement. | |
The Boston Globe is expected to lose $85m this year. | |
Online competition | |
The owners want the unions to agree to $20m (£13.4m) in money-saving measures. | |
Guaranteed jobs for life are expected to be a sticking point, with the unions saying they are not negotiable. | Guaranteed jobs for life are expected to be a sticking point, with the unions saying they are not negotiable. |
The biggest union, the Boston Newspaper Guild, said it had offered more than $10m in concessions. | The biggest union, the Boston Newspaper Guild, said it had offered more than $10m in concessions. |
There was originally a Friday deadline for agreement, which was extended after some progress was made. | There was originally a Friday deadline for agreement, which was extended after some progress was made. |
The Boston Globe is the latest title to find itself crushed between a variety of forces, including falling sales, rising costs and declining advertising revenues, the BBC's Kevin Connolly in Washington says. | |
Our correspondent adds that the internet is the source of most of the American newspaper industry's problems: demand from readers forces them to publish information online instantly and consumers are then reluctant to pay to see the same news in print the following day. | |
At the same time, internet sites offer cheap - and sometimes free - competition for the classified advertising which once kept the industry going. | |
With no new business model in sight to resolve those problems it seems inevitable that more titles will close in future, our correspondent says. | |
At least 12,500 jobs have gone in US print journalism in the past two years. | At least 12,500 jobs have gone in US print journalism in the past two years. |