Magazine article Editor & Publisher

'Temporary' Pay Cut at Illinois Paper Becomes Permanent

Magazine article Editor & Publisher

'Temporary' Pay Cut at Illinois Paper Becomes Permanent

Article excerpt

Saying display and classified ad revenues "fallen to levels not since the severe recession of early 2000," Doug Ray, publisher of the Daily Herald in Arlington Hts., Ill., has told employee a 5% pay cut imposed on a temporary basis last summer will become permanent. At the same time, he said that pay raises that were frozen in August will go through, and will be paid retroactively. "We had hoped for a different outcome, but we believe this is the most prudent course of action," Ray said in a memo distributed to employees Tuesday, and first published on the Romenesko site at www.poynter.org. "Rather than allowing this issue to linger, we are announcing the pay reduction now so that the company and you can plan for next year. This was a difficult decision, but one that hopefully will eliminate the need for another round of layoffs and other significant cost cutting which I believe would have a more negative impact on operations and staff." In July, the Daily Herald, Illinois' third-largest daily, laid off employees for the first time in the Paddock family-owned paper's history. At that time, the paper announced the across-the-board salary reduction, and said that every employee would receive an additional week of paid vacation to be take in the second half of 2008. …

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