Here is the FAQ accompanying Lougee's letter

Broadcasting Salary Reduction Program


July 2009

Q. Why is this program being implemented?
A. As Dave’s letter outlines, the combination of the economic downturn and the permanent reset of consumer spending habits means we need to reset our own spending levels in order to keep our division strong and well positioned for the future.

Q. How much will my annual salary be reduced?

A. If you make: 

• less than $30,000, you will not be affected.


• $30,000 to $39,999, the reduction is 4%.


• $40,000 to $49,999, the reduction is 5%.


• $50,000 and higher, the reduction is 6%.


The salary reduction will be calculated from your base annual salary, prior to any furlough or temporary salary reductions in the first and second quarters.



Q. I am a part-time employee. Does this salary reduction impact me?

A. The reduction in base pay may impact you. If your annualized base compensation on a comparable full-time (40 hours a week) salary is $30,000 or more, you are subject to the salary reduction under the same scale outlined above.

Q. Does this affect everyone?

A. This applies to non-contracted employees making $30,000 or more. However, it’s important to note that most contracted employees have already taken salary reductions, some of those voluntarily. Many of those reductions have been at much higher rates than being implemented here. Union-represented employees are being asked for salary reductions, and some unions already have agreed to reductions greater than these. 

Q. Will there be any exceptions?

A. Our stations in Cleveland and Maine are not included because they already put a similar salary reduction program in place at the beginning of this year. However, they will be doing furloughs in the second half of the year because they didn’t have furloughs in the first quarter. Commissioned account executives will not be included in the program. There also will be a handful of people who have had job status changes in recent weeks whose compensation was established based on this new pay structure. 

Q. Why are we not doing furloughs instead?

A. The third and fourth quarters traditionally see more vacations. With that in mind, division and station management felt more furloughs would mean too many people would be out of the office.

Q. Are all Gannett divisions implementing salary reductions?

A. No. Each division is approaching the question of expense reductions in a way that aligns with their financial and strategic realities. Divisions are implementing and communicating their plans separately.


Q. Does this mean there won’t be any layoffs coming?

A. One of the goals of this plan is to minimize the need for significant layoffs. We are hopeful the economy is beginning to stabilize and bring some clarity to advertiser demand. Beyond that, we can’t make any permanent decisions given the continued uncertainty in the economy. 



Q. When will this salary change be effective?

A. The effective date will be July 1, 2009, for all employees. For monthly paid employees, the reduction will be seen on the July 15 paycheck. For bi-weekly paid employees, the reduction will be seen on the July 17 paycheck.


Q. How are my benefits impacted?

A. This program will not affect your medical insurance eligibility or coverage. Your contribution toward the cost of coverage may be reduced if the program changes the salary band into which you fall. If that occurs, you will receive written confirmation from Your Benefits Resources (YBR).

Your basic life insurance, and any supplemental coverage you may have elected, will be based on your new pay rate effective July 1.

If you participate in the 401(k) plan, you will continue to have your designated percentage of pay deducted based on your new salary level.

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