The Boston Globe's largest union on Monday rejected the proposed US$10 million wage and benefit cuts proffered by owner New York Times Co., which later announced, as a consequence of the failed negotiations, a 23 percent pay cut for all Guild union members beginning next week, Boston.com, the Globe's Web site, reported Monday.

The pay cut could quickly transfer the disagreement to the National Labor Relations Board and federal courts. The Boston Newspaper Guild, representative of almost 700 editorial, advertising, and business office staff, said it would file for unfair labor practice and hope to block the pay cut with a court order.

Globe management expressed disappointment in the vote, stressing the company could not avoid the extensive cost savings sought from the newspaper's largest union.

"As we have stated, the $10 million in cost savings from this multifaceted proposal is essential to The Boston Globe's financial future," Globe spokesman Robert Powers said, according to Boston.com. "We regret having to take this action, but have no financially viable alternative."

After the vote, Daniel Totten, president of the Boston Newspaper Guild, release a statement saying: "With today's vote, members of the Boston Newspaper Guild have said that The New York Times Company must do better than the offer that was presented. Globe workers and the New England community understand that the quality of The Boston Globe - an institution so vital to the life and culture of the region - depends on the fair treatment of the men and women who work so hard to produce it."

In an 80 percent turnout, Guild members narrowly chose to reject the cuts, with 277 to 265 voting 'no' to the Times Co. contract offer. The proposal included pay cuts in excess of 10 percent, large health retirement benefit cuts and the loss of lifetime job guarantees for 170 veteran staff, Boston.com reported.

The Guild was the only union of the Globe's four major trade organisations to reject to the Times Co. offer, which the owner said was necessary to keep the Globe open. The newspaper is predicted to lose $85 million this year.

In April, the Times Co. threatened to close the Globe unless it could find $20 million in concessions from its unions, with $10 million being asked from the Guild, the paper's largest union. In late May, union representative for mailers, press operators, and delivery truck
Drivers consented to almost $10 million worth of concessions.

"The urgency of the Globe's financial condition makes it imperative that we achieve those savings and savings negotiated with our other unions immediately," said Gregory Thornton, the Globe's chief negotiator, in a letter to Totten.

Thornton also offered Totten the opportunity to discuss the pay cut with Globe management "any day this week," before it takes effect on Monday, according to Boston.com.