The Boston Newspaper Guild, Boston Globe's largest union, has agreed to wage and benefit cuts worth $10 million a year in an attempt to save the struggling newspaper.

The union represents around 700 editorial, advertising, and business office staff, but only 80 percent of the worker turned out to exercise their vote. Workers voted 366 to 179 to support the proposal regarding wage-cuts.

Under the agreement, workers will see their 9 percent reduction in earnings via pay cuts, unpaid vacation and furloughs. Pension freeze has also been introduced.

Guild's current move will help the Boston Globe to reduce its losses that have been projected to reach $85 million by the end of 2009.

P. Steven Ainsley, Globe publisher, said, "The ratification strengthens the stability of The Boston Globe and Boston. com."

It should be noted here that the New York Times, Globe's owner wants to sell the loss-making paper.

According to analysts cut approved by workers may make the paper amore attractive purchase for the potential buyers.

The New York Times bought the Boston Globe in 1993 for $1.1bn, but current value of the Boston Globe is much less than that.