The tech union at the New York Times (NYT) is threatening to stage a strike on the U.S. presidential election day if management does not negotiate a contract until then. Members of the Times Tech Guild and NYT have been at loggerheads since nearly two years over negotiations for fair wages, work protection, and benefits such as full-time remote work. Meanwhile, executives at the media house contend that the tech workers are the most well-paid employees of the company and already enjoy generous benefits.
NYT Management and Tech Union’s Talks Go Awry
The union alleges that NYT management has not been cooperative at table negotiations, and thus the motion for a strike was inevitable. The Times management, on their part, argues that the tech team members get an average salary that is at least $40,000 more on average compared to that of the journalists. Members of the Times newsroom union, represented by the NewsGuild-CWA, are also supporting the tech team’s demands.
The 600-member tech union consists of data analysts, software engineers, project members, and tech workers. NYT and other media houses are striving to expand their digital offerings and attract subscribers as more and more viewers shift to online.
The U.S. presidential election is scheduled on November 5, promising to be one of the most watched events of the year, with candidates Donald Trump and Kamala Harris walking a tightrope. At such a crucial time, the tech team’s strike would mean that NYT’s digital division could face grave problems in releasing real-time updates. Moreover, the strike could hinder the running of apps such as the Needle, Wordle, and mobile push apps and the timely removal of bugs, if any. This could lead to a loss of prime viewership and even cause permanent loss of subscribers for the Times.
New York Times Q3 Results Due Today
All this drama unfolds as the New York Times is expected to release its Q3 FY24 results before the market opens today. The Street expects NYT to report adjusted earnings per share (EPS) of $0.41 on revenue of $641 million. In Q3 FY23, NYT posted adjusted EPS of $0.37 on revenue of $598.35 million.
The expectations show a modest jump over the prior-year comparative figures. Importantly, NYT has consistently outpaced earnings expectations in the last eight quarters.
Is NYT a Good Stock to Buy?
Analysts remain divided on New York Times stock. On TipRanks, NYT stock has a Moderate Buy consensus rating based on four Buys and two Hold ratings. Also, the average New York Times price target of $57.17 implies that shares are almost fully valued at current levels. Year-to-date, NYT shares have gained 17.2%.
