New York City-based publishing house, the New York Times (NYSE:NYT), is under severe threat from growing labor unrest. As per the NYT, The NewsGuild, a union representing journalists and reporters, is using unhealthy tactics to create a rift between the company and its reporters. Even after two years of negotiations, the union and NYT’s management have not been able to align their opinions on wages and health care benefit payments.
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Last week, Times publisher A.G. Sulzberger sent a note to union members asking them to negotiate in small groups so that the disagreements could be resolved face-to-face, but the committee refused to do so. Sulzberger even suggested bringing in a third party to help with negotiations but was turned down by the Guild.
Meanwhile, the Guild insists on “working together in good faith” to ensure that their demand for wage increases is met unanimously. As per the Wall Street Journal, NYT’s management is concerned about how the Guild and its reporters are using the Slack app to vent out their frustration about the situation. The reporters are also citing the hefty pay given to top executives in 2022, which was based on the collective efforts of the entire publishing house. The employees complain that only a handful of executives are rewarded, while the majority of staff remain underpaid with salaries that do not even keep pace with rising inflation.
The NYT management worries that any further unrest could lead to strikes and more difficulty in agreeing to an arrangement that is in the best interest of both parties. Staffers are also divided over the Guild’s role and intention in striking a deal that is in their best interest. While some are willing to work with a mediator to reach a deal, others worry that a mediator will only prolong the negotiations.
Is NYT Stock a Good Buy?
Based on one Buy and two Hold ratings, the NYT stock has a Moderate Buy consensus rating on TipRanks. Also, the average New York Times price forecast of $38.33 implies a nearly 4% upside from current levels. Year to date, the NYT stock is up 11.5%.
