Journal Communications cuts pay for execs, managers
Posted by Simon Day on April 3, 2009 at 8:29 AM
Executives and managers at U.S. publisher Journal Communications will take pay cuts of 6 percent, and will receive 10 extra days off as compensation, The Associated Press reported. Chairman and Chief Executive Steven J. Smith made the announcement to employees in a letter, in which he blamed the ongoing decline in advertising revenue as the reason for the cut.
"There is a high probability that this environment will continue for at least the balance of 2009," Smith wrote. "As we manage for the long-term success of the company, we must identify constructive ways to continue to reduce costs."
"There is a high probability that this environment will continue for at least the balance of 2009," Smith wrote. "As we manage for the long-term success of the company, we must identify constructive ways to continue to reduce costs."
Supervisors and corporate staff will also see their pay reduced. At this time union workers in the newsroom are unaffected by the cost cutting measures. Smith told employees the company hopes to "restore employee compensation in 2010," the AP reported in an article posted by Forbes.
Prior to the managerial pay cut announcement, the company revealed a voluntary buyout offer for its union staff. Guild President, Guy Pearson, said the offer included two weeks of severance pay for every year with the company, with a limit of 30 weeks and two months of paid health care. This cap has disappointed some veteran staff members with more than 15 years service, the AP reported. Employees must decide whether to accept the offer by April 10.
The cuts are an attempt to reduce the annual payroll by $1.2 million. Pearson said this amounts to 16 to 18 jobs, and he expects a similar offer of unpaid leave will be made to union members.
"I think that type of arrangement is palatable for most people," he said, according to the AP. "They realise sacrifices have to be made, and this way there's a certain payback if they get that time off."
Journal Communications is publisher of the Milwaukee Journal Sentinel, the largest newspaper in Wisconsin. It also owns and runs 35 radio stations and 12 television stations.
Prior to the managerial pay cut announcement, the company revealed a voluntary buyout offer for its union staff. Guild President, Guy Pearson, said the offer included two weeks of severance pay for every year with the company, with a limit of 30 weeks and two months of paid health care. This cap has disappointed some veteran staff members with more than 15 years service, the AP reported. Employees must decide whether to accept the offer by April 10.
The cuts are an attempt to reduce the annual payroll by $1.2 million. Pearson said this amounts to 16 to 18 jobs, and he expects a similar offer of unpaid leave will be made to union members.
"I think that type of arrangement is palatable for most people," he said, according to the AP. "They realise sacrifices have to be made, and this way there's a certain payback if they get that time off."
Journal Communications is publisher of the Milwaukee Journal Sentinel, the largest newspaper in Wisconsin. It also owns and runs 35 radio stations and 12 television stations.
0 TrackBacks
Listed below are links to blogs that reference this entry: Journal Communications cuts pay for execs, managers.
TrackBack URL for this entry: http://www.editorsweblog.org/mt/mt-tb.cgi/17725
Leave a comment