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'Arkansas Democrat-Gazette' Seeks Cuts in Workers' Pay, Hours

Published: January 14, 2009 4:16 PM ET
ARKANSAS The Arkansas Democrat-Gazette is asking for volunteers to accept a reduction in their work hours and salary.
High costs and pressure on advertisers from the recession are the reasons for the request, said Paul R. Smith, president of Arkansas Democrat-Gazette Inc. He said the paper's advertisers were spending less on ads.
Smith asked for the cuts in a memo to employees Tuesday.
The newspaper asked workers to volunteer to trim their hours from 40 hours to 32 hours per week. The cut could be made by working four days a week or spreading the 32 hours over five days. Employees working at least 30 hours would keep their health benefits.
The newspaper has already cut expenses and is "continuing to look for other ways to improve productivity and reduce costs," Smith said. "We have to find a way to reduce expenses more than we have already."
"This is also true for television stations, radio stations, and other print publications throughout Arkansas," Smith said. "Most of them have implemented layoffs and other cost saving measures."
The company's largest single cost is payroll, Smith said.
Newspapers nationwide have had "across-the-board" layoffs, Smith noted, adding that, "before having to decide if such cuts will be necessary, we want to offer some voluntary plans which might help us to reduce payroll expenses."
The Democrat-Gazette in August established a wage freeze and limits on hiring that remain in effect. But the newspaper granted employees Christmas bonuses.
It is owned by Wehco Media Inc., a privately held communications company with interests in newspaper publishing, cable television and the Internet.
The Democrat-Gazette's Web site said the newspaper has a circulation of 180,188 daily and 273,125 Sunday.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed.
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