Gannett staff to get forced, unpaid ‘vacations’

By Len Gutman on January 15th, 2009 In Media

gannettlogoArizona Republic and Ch. 12 parent Gannett announced yesterday that it will be requiring employees to take one week off without pay during the first quarter to save money. As if things weren’t bad enough for the news business.

According to reports however, there are still questions as to whether or not furloughed employees are eligible for unemployment pay during the week off. Newspaper Guild and other union representatives are asking union members to be patient as they figure this all out.

“People are concerned, but it is certainly better than layoffs,” said John Kridelbaugh, vice president of market development and digital at The Indianapolis Star.

Gannett staff to get forced, unpaid ‘vacations’

Comments

Charlotte Risch Says:
January 15th, 2009 at 7:54 am

Saw this news on Twitter yesterday while following @nickmartin. Though you might be interested in seeing actual memo.

http://www.heatcity.org/2009/01/exclusive-gannett-update-memo-from-republic-publisher-to-employees.html

Jackie Dishner Says:
January 15th, 2009 at 8:27 am

Guess it is better than being laid off. Writers don’t want to be thrust into the world of freelancing right now, as that’s not much of an option, especially if you’re new and need to build a client base.

Generally speaking, magazines are folding by the day or producing more in-house. Web sites are lowering pay. Trades that use freelancers are sticking solely with who they know.

And the doom and gloom only seems to be getting worse, as some publishers have even stopped paying writers for work already done. Ad sales are down, and they don’t have the money!

If I were a Gannett employee, guess I’d be thankful to have some kind of job security…

Jackie (freelancing from Phoenix since 1997)

Chris Davis Says:
January 15th, 2009 at 11:58 am

This is never good news but with the continual slide of newspapers, it is so much better than what many people in this industry are preparing themselves for.

Nina Says:
January 15th, 2009 at 12:02 pm

Gannette is not the only company doing this. My company did the same thing over Christmas…two weeks later 60% of our staff was laid off (including me).

Laurie Perez Says:
January 15th, 2009 at 7:15 pm

This news makes me poignantly nostalgic for last year’s writers’ strike. It’s not quite the same issue, but in the ballpark. Scribes are the spine of all news. No one to write the story = no news to post = no ads in view of readers’ eyes (so no ad dollars sustaining the publication).

This is not the time to sanction writers. It’s time to elevate quality. Let’s not be “poor” in a challenging economy. Let’s raise the game.

jakers Says:
January 19th, 2009 at 12:50 pm

Hmmm. I thought events were the spine of all news.

and the economy has changed for news and there model hasn’t adapted.

They are going to have to make cuts and I wouldn’t imagine they will be making a comeback after the boom returns.

Pat Elliott Says:
March 26th, 2009 at 3:29 pm

Round Two is underway:

Monday, March 23, 2009, 2:52pm MST

Gannett orders second unpaid furlough

Phoenix Business Journal – by Jeff Clabaugh

Gannett Co. Inc, which is already mandating a one week of unpaid furlough for most of its employees this quarter, has ordered another unpaid furlough for many employees in the second quarter.

The company will also temporarily cut salaries for some of its higher-paid employees.

In a memo to employees, CEO Craig Dubow said the company is about to begin the second quarter without any real relief in sight from the economic downturn, and revenue continues to fall.

“As with our first program, we are doing furloughs to hopefully mitigate the need for layoffs and to preserve our operations in the face of these extraordinary economic times,” Dubow said in the memo. “We believe this is the best possible course, given the alternatives.”

McLean, Va.-based Gannett, which has lost top credit ratings from Moody’s and Standard & Poor’s in recent weeks, saw earnings fall 36 percent last quarter.

The company has cut jobs at USA Today as well as at Phoenix’s major daily the Arizona Republic.

Gannett stock (NYSE:GCI), trading at around $2.35 per share Monday, has lost more than 90 percent of its value in the last year.

Jeff Clabaugh is a reporter for the Washington Business Journal, a sister publication.

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