Reuters, a union, a tax break and the city of New York

Daniel Massey of Crain’s New York writes Wednesday about how the Newspaper Guild of New York is using an attempt by Thomson Reuters to get tax breaks from the city of New York as a negotiating tool in its shuttered contract talks.

Massey writes, “At the root of the officials’ stated concern over the subsidies is a dispute between Thomson Reuters and the union that represents 420 reporters, editors and technical workers at the media company over a new contract to replace a deal that expired in February 2009. Thomson Reuters declared an impasse in negotiations this past January and imposed new work rules, rather than keep the existing contract in place until a new one could be agreed upon.

“‘They’re the ones who declared an end to negotiations,’ said Guild President Bill O’Meara. ‘We’re willing to talk, but they only want it their way.’

“The National Labor Relations Board is investigating eight charges of unfair labor practices against the company, some of which deal with the contract negotiations. And the union, in an attempt to pressure the company back to the bargaining table, has mobilized local elected officials to question the subsidies. The union was able to get the project kicked off the agenda of the IDA’s May meeting and is hoping to exert enough pressure this time around to delay Tuesday’s vote.

“Reuters was initially granted $26 million in subsidies in 1998 as part of a deal with the Giuliani administration to build 3 Times Square. Only $2.4 million of those tax breaks have been used. In 2008, the Thomson Corp. acquired Reuters and the company is now looking to modify its initial agreement to allow benefits to be used for renovation and purchase of equipment at seven Manhattan locations.”

Read more here.